For Indian taxpayers who missed the crucial September 16 deadline for filing their Income Tax Return (ITR) for Assessment Year 2025-26, a significant window of opportunity remains open. The Income Tax Department allows individuals to submit a belated return, providing a chance to regularise their tax affairs and avoid more severe penalties. However, this extended deadline comes with specific costs and conditions that every taxpayer must understand.
Understanding Belated and Revised Returns
The key distinction between a belated and a revised return is critical. A belated return is filed under Section 139(4) of the Income Tax Act after the original due date specified under Section 139(1) has passed. This is the provision for those who simply did not file their return by the deadline, which was September 16, 2024, for most individual taxpayers for the current assessment year.
On the other hand, a revised return under Section 139(5) is for taxpayers who have already filed their ITR but subsequently discovered errors, omissions, or mistakes—whether intentional or unintentional. It is a corrective mechanism. Importantly, only a return originally filed under Section 139(1) or a belated return under Section 139(4) can be revised. A return filed in response to a notice from the tax department under Section 142(1) cannot be revised.
Deadlines and Financial Implications
The last date to file a belated return for the current Assessment Year (2025-26) is December 31, 2025. For filing a revised return, the deadline is three months before the end of the relevant assessment year or before the completion of assessment by the tax officer, whichever is earlier. For AY 2025-26, this also translates to December 31, 2025.
Choosing to file after the original due date carries financial consequences. The primary disadvantages include:
- Late Filing Fee (Section 234F): A mandatory fee is levied for filing after the deadline, the amount of which depends on the delay and the taxpayer's total income.
- Interest on Tax Due (Section 234A): Interest is charged on any outstanding tax liability from the original due date (July 31 or September 16, as applicable) until the actual date of filing the belated return.
- Loss of Certain Benefits: Some benefits, such as the ability to carry forward losses (except house property loss), are available only if the return is filed by the original due date. Filing belatedly may lead to the forfeiture of these advantages.
Why Filing a Belated Return is Still Crucial
Despite the penalties, filing a belated return is a vital provision. It serves as a protective measure for taxpayers, preventing them from being classified as non-filers or defaulters, which can attract more severe scrutiny and penalties from the tax authorities. By filing a belated return, an individual formally declares their income and tax liability for the year, which is far better than not filing at all. It is the first step towards compliance and helps avoid potential legal complications.
In summary, while the original deadline of September 16 has lapsed, taxpayers have a final opportunity until the end of 2025 to file their belated ITR. It is a chance to become compliant, albeit at the cost of a late fee and interest. Taxpayers should also remember the option to revise their return if any mistakes are found post-filing. Proactively addressing one's tax obligations, even belatedly, remains the most prudent financial course of action.
