Many people fail to file ITR within the time stipulated by the Income Tax Department. However, even if you miss to file ITR within the deadline, you can file it via a provision called Belated Return. When filing belated returns, the individual should be aware of the procedures, requirements, and penalties.

What is Belated Return?

The income tax return that is filed after the due date is known as “Belated Return”. You can file belated returns at the end of the assessment year. After the budget revision of 2016, a person can now file the belated return within one year from the end of relevant assessment year.

Say for example, if you need to file the belated return for FY 2016-17, the relevant assessment year is 2017-18, and the return can be filed until 31st March of 2018 only.

The scenario of missing the final deadline

If you miss the last deadline of the relevant assessment year, you will incur any one of these situations where:

• You will be called upon by the IT Department to explain your reason for the delay in the requisite proof.
• Starting from April 1, 2018, and onward:
  • If you are filing your return after the due date but before 31st December of the assessment year, then:
    • If your income is above Rs. 5 lakhs, then you will have to pay a penalty of Rs. 5,000.
    • If your income is less than Rs. 5 lakhs, then you need to pay a penalty of Rs. 1,000.
  • If you are filing your return after the due date and after 31st December of the assessment year, then:
    • If your income is above Rs. 5 lakhs, then you will have to pay a penalty of Rs. 10,000.
    • If your income is less than Rs. 5 lakhs, then you need to pay a penalty of Rs. 1,000.

Restriction in writing off losses

The losses sustained by you in the financial year (other than house property loss) cannot be carried forward to subsequent years to write off against the future gains in the case where the ITR has not been filed within due date.

When looking for ways on how to file ITR online, it is imperative to take note of the stipulated dates and make sure that there is no lagging in the area concerning the basics of income tax filing of your income tax.