ITR filing can be a hazardous task, especially if one is unaware of the technical rules. Belated and Revised ITR have different features for private companies, business professionals and salaried individuals. So, one should know the technicalities.
Difference Between Belated and Revised ITR – Introduction
Sometimes taxpayers cannot file their income taxes on time, known as a belated return, while they file their taxes after the due date. The assessing officer can notify the taxpayers to pay their taxes within the due date, and taxpayers must file their taxes within this due date. But there can be some issues in the ITR filing, and the assessing officer can find a wrong statement in the tax files submitted by a taxpayer, and they can raise an issue to submit the revised return with a rectified tax file. Understanding the difference between belated and revised ITR is essential for taxpayers to fulfill their obligations accurately and avoid unnecessary penalties. In this article, we will delve into the contrasting features of these two terms and shed light on their significance.
How to File Belated Returns?
Missed the deadline to file your income tax return? Don’t worry, you can still catch up! Here’s a simple guide to help you file a belated return.
File Your Return Online
- Log in to Your Account: Access your income tax e-filing account.
- Start a New Return: Go to the ‘e-File’ section and choose ‘Income Tax Returns’. Select ‘File Income Tax Return’.
- Pick the Right Year: Choose the correct tax year you’re filing for.
- Start Filling Out: Select ‘Online’ as your filing method and begin a new return.
- Tell Us About You: Enter your personal details accurately.
- Declare Your Income: Provide complete information about your income from all sources.
- Mark It as Late: Select ‘139(4)’ to indicate that you’re filing a belated return.
- Pay Up: If you owe taxes, make the necessary payment.
File Your Return Offline
- Download the Form: Get the offline ITR preparation tool from the income tax website.
- Fill in the Details: Use the tool to enter your income and other information.
- Upload and Verify: Save your filled-out form as a .json file and upload it to the e-filing portal. Complete the verification process.
Remember: Filing a late return usually comes with a penalty. It’s best to file your returns on time to avoid extra charges.
What to Do If You Receive a Late Payment Notice
If the Income Tax Department sends you a notice for unfiled returns from more than two past years, here’s how to handle it:
- File Your Returns Online: Head to income tax e-filing account to prepare your returns electronically.
- Print and Submit: Once complete, print out the filled returns and submit them to your local Income Tax office.
Important Notes:
- Tax notices often target situations where you haven’t filed for multiple years.
- Unlike regular belated returns, you cannot revise these older returns once filed. (Exception: This applies only for belated returns filed after the 2016-17 financial year.)
- Missing past return filings might prevent you from carrying forward certain losses to offset your future taxes. However, there’s an exception for house property losses, which can still be carried forward even with late filings.
What Is the Due Date for Filing the Income Tax Returns?
Salaried and self-employed individuals must file their tax returns by 31st July of every year. But, if you are a businessman and own a company, you need to audit your tax file by hiring a certified auditor, and you can file your return by 30th September.
How Would You File Your Overdue Taxes
You can pay your overdue taxes by the end of the assessment year or file your returns before the end of the assessment year. You must pay your overdue taxes before the end of the assessment year. Otherwise, you have to pay a fine of ₹5000 for belated return files.
According to the new income tax rules implemented from 2017-18, you need to pay ₹5000 for filing your returns if you file your tax after the due date but before 31st December. But, if you fail to do so and do not file your returns by 31st December, then you have to pay an ₹10,000.
The above penalty amount will apply to taxpayers with a minimum income of ₹5,00,000. If you have income less than 5,00,000, you must pay a late fine of ₹1000 for your overdue tax returns.
How Would You File Your Revised Taxes
- Revised taxes and belated returns are different because when you pay your taxes and file them after the due date, they will be treated as overdue tax returns: https://www.incometax.gov.in/iec/foportal/. But if you receive a mail or letter from your assessing officer stating that you have a wrong statement submitted during your return, then it will be treated as a revised return.
- Make sure you make the corrections stated by the assessing officer before submitting your revised returns because there is no chance of concealment or false statement. If you made a wrong statement intentionally, you would get an opportunity to give your revised returns with a penalty.
Like overdue tax returns, you can also file your revised ITR by the end of the assessment year. You can file your revised tax returns multiple times until the assessing officer implements any restriction. However, you need to meet the prescribed date while filing your returns.
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Things to Remember While You File Your Revised Returns
When you revise your tax returns, there will be a new calculation of your income and losses, and your new calculated taxes will be filed after completing the required correction in your tax files. In this case, your updated taxes or balance sheet will be carried forward. Here, you can find some judicial decisions about revised returns:
- As an assessee, if you change the status of the accounting year, then you cannot file your revised ITR.
- You cannot file your revised tax by identifying a mistake or omission in your tax file, and you need to revise your returns in accordance with Section 139(5).
- Conversely, mistakes and omissions should be discovered and rectified by the assessee, and an assessing officer cannot revise a tax return file under Section 139(5).
- Make sure you must choose the right ITR form while you file your revised or overdue taxes because your form can be changed in this case.
- Once you file your revised returns, you need to check the status of your return file within the next seven to fifteen days. Suppose you find any error or omission found by an assessing officer. In that case, you need to pay the penalty because the officer can impose such a penalty if they find any intentional or fraudulent error.
Pay Your Overdue Taxes on Time
There is a provision to file the return after the due date, and you can file your taxes as an overdue tax return. But you should not take this as a regular practice because you can suffer from the following issue if you file your taxes in a delayed manner:
- You can lose your capital gain, and your business or professional license can be suspended. You cannot carry out your business activity due to non-paying your taxes and filing your returns on time.
- You need to pay interest under section 234A. In this case, you must pay 1% interest on your due tax per month.
- The assessing officer can impose a penalty of Rs. 1,000 to Rs.10,000 depending on your income. Assessing officers have this right to impose such a penalty under the second 271F.
- If you are eligible for a refund and pay your taxes after the due date, then interest will be deducted from your refund amount under section 244A.
Are You Eligible to Pay Income Tax?
If you are less than sixty and have an income of INR 2.5 lakh per annum, you must file your taxes every year before your due date. Senior citizens can file taxes if they earn more than 3 to 5 lakhs per annum.
Companies, firms, and businesses must pay their taxes, and they have to file their returns on time.
Conclusion:
Belated and revised ITR are two terms that refer to late submissions or modifications to the original income tax return, with belated ITR filed after missing the deadline and revised ITR filed to correct errors or update information in the original return. So, paying your taxes on time is mandatory, and you can avoid unnecessary hassles by submitting your returns before 31st July of every year. You can file your belated returns if you miss the date or cannot complete your return statement within the due date. If you intentionally make a mistake, you have to pay the penalty imposed by the assessing officer. You can get help from professional firms.
FAQs
Can belated service tax returns be revised?
No, belated service tax returns cannot be revised. Once filed, they are final. If there's an error, you might need to apply for rectification or correction through the appropriate channels.
What is the disadvantage of belated ITR?
Filing a belated ITR usually comes with penalties. Additionally, you might miss out on carrying forward certain losses to offset future tax liabilities, except for losses from house property.
Can loss be claimed in revised return?
Yes, you can claim losses in a revised return. If you missed claiming a loss in your original return, you can rectify this in the revised return, provided it's filed within the specified deadline.
What is the penalty for belated return?
The penalty for filing a belated return varies based on the delay. Generally, there's a late filing fee, and in some cases, interest on the unpaid tax amount. The exact penalty can be found in the Income Tax Act or by consulting a tax professional.
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