Will you have the option to choose your tax regime?

According to income tax rules, after the deadline for filing income tax returns has passed, taxpayers can only file their returns under the new tax regime. They don’t have the option to choose a tax regime of their choice between the two tax regimes.

Returns will be filed under the default regime.

Indeed, the government has now made the new tax regime the default option. The new tax regime has lower tax rates and no tax is payable on income up to ₹11 lakh. However, under the old tax regime, several deductions such as 80C, 80CCC, and 80CD(1) are available, which are not available in the new tax regime.

Interest will be charged along with a penalty.

It should be noted that filing a belated ITR (Belated ITR Filing 2025) could result in a penalty of up to ₹5,000. Furthermore, if a tax liability arises under Section 23A, a 1% interest will also be charged on the belated ITR every month. However, if the taxpayer has already paid the tax, no interest will be charged on filing a belated ITR.

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What is belated return?

An ITR filed after the due date specified in Section 139(1) is considered a belated return. This date is usually July 31st. However, due to several changes to ITR forms this assessment year, the deadline was extended to September 16th. This means that ITRs filed after September 16th and until December 31st are considered belated ITRs.

Penalties and fees on belated returns

Taxpayers with annual income of more than ₹5 lakh will be charged a penalty of ₹5,000.
Taxpayers with annual income less than ₹5 lakh will be charged a penalty of ₹1,000.
Apart from this, 1% interest will have to be paid every month on the tax due.
According to the Income Tax Department, “Under section 234F, a late fee of ₹5,000 will be applicable for filing the return after the due date specified in 139(1). However, if the total income is less than ₹5 lakh, the fee will be ₹1,000.”

Limitations on Belated Returns

You can claim a refund through a belated return, but you can’t change your tax regime. This means that if you don’t file your ITR on time, you may end up paying more tax and receiving a lower refund. Certain deductions and exemptions (such as sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE) are not available with a belated return.

Additionally, taxpayers who miss the deadline also lose certain other benefits. For example, business and capital gains losses cannot be carried forward to subsequent years. However, house property losses can be carried forward to belated returns.

If the tax is not paid, the penalty is imprisonment for a term of three months to two years. If the outstanding tax exceeds ₹25 lakh, the penalty is imprisonment for six months to seven years. This generally does not apply to salaried individuals.

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But, there is a penalty and interest on filing the return late. This is called belated return. Let us try to know about this in detail.

Who can file belated return?

Taxpayers whose accounts are not required to be audited can file their FY24 income tax returns by December 31, 2024. There is a provision of penalty on belated return under section 234F of the Income Tax Act . There is a penalty of Rs 5000 for filing the return by December 31 of the assessment year. There is a penalty of Rs 10,000 for filing the return after December 31 but before the end of the assessment year (before March 31). For those whose total income is up to Rs 5 lakh, there is a penalty of Rs 1,000 for filing a belated return.

No loss carry-forward facility

On filing a belated return, interest is charged on the tax liability of the taxpayer under section 234A. One disadvantage of filing a belated return is that it does not provide the facility of loss carry-forward. The facility of loss carry-forward is available only on ‘income from house property’. Even if there is any mistake in the belated return, a revised return will have to be filed by 31 December.

What is the filing process?

The process of filing a belated return is similar to filing a normal return. It can be filed from the e-filing portal of the Income Tax Department. For this, taxpayers will have to log in with their ID and password. Then the correct income tax return form will have to be selected. Then all the information including income will have to be entered. Then after submitting the form online, the verification process will have to be completed. It has to be kept in mind that belated return can be filed only for FY24.

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The post Belated ITR Filing Last Date: Here’s a complete guide to filing a belated ITR for the FY 2023-24 first appeared on Rightsofemployees.com.