Belated Income Tax Return

An Article by CA Manpreet S. Taneja

As we all know that normal Income Tax Return Filing dates have passed for Assessment Year 2022-2023.

But The Tax Payer can still file the Belated Return of Income even if they had missed the original deadline.

We are here to discuss a few things about the Belated Return of Income. 

Every Taxpayer is mandatorily required to communicate the details of his/her income to the Income-tax Department. These details are required to be furnished in the prescribed form(s) known as return of income (ROI).

What are the Due Dates for filing Return of Income (ROI)?

S. No.Category of Tax PayerDue Date
  1Any Company other than the company liable for Audit u/s 92E (to whom Transfer Pricing Provisions are not applicable)  October 31 of the Assessment Year  
    2Any person (may be corporate/non- corporate) who is required to furnish a report in Form No. 3CEB under section 92E (To Whom Transfer Pricing Provisions are applicable)      November 30 of the Assessment Year  
    3Any Person (other than a company) whose accounts are to be Audited under the Income-tax Law or under any other Law         October 31 of the Assessment Year  
  4A working partner of a firm whose accounts are required to be audited under this Act or under any other law.       October 31 of the Assessment Year  
  5  Any Other Assesse    July 31 of the Assessment Year  

Belated Return

Legal Provisions

If the taxpayer fails to file the return of income within the time-limit prescribed in this regard, then as per section 139(4) he/she can file a belated return. A belated return can be filed at any time 3 months before the end of the relevant assessment year or before completion of assessment, whichever is earlier.

Therefore, Practically the Belated Return has to be filed on or Before 31st December of the Assessment Year.

In case of Assessment year 2022-23, the Belated Return can be filed by 31.12. 2022 and not beyond that.

Illustration

Mr. Ramta Jogi is a trader of agricultural products. Turnover of his business for the previous year 2021-22 amounted to Rs. 84,00,000. He has not opted for the presumptive taxation scheme of section 44AD i.e., not declaring income at 8% of sales. He declared income at less than 8% of sales. What will be the ‘due date’ for filing his return of income for the financial year 2021-22? If he fails to file the return of income by the due date then by what date he can file a belated return?

  • In this case, as Mr. RamtaJogi had not opted for presumptive taxation scheme of section 44AD*, and declared income at less than 8% of sales, he will be required to get his accounts audited under section 44AB** and, hence, he is covered in Sr. No. 3 of the table discussed earlier.
  • Hence, the due date for filing the return of income of the year 2021-22 will be 31st October, 2022.
  • If he cannot file the return of income by the due date, i.e., by 31st October, 2022, then he can file a belated return 3 months before end of the relevant assessment year or before completion of assessment, whichever is earlier.
  •  In other words, he can file a belated return up to 31-12-2022.
  • If the assessment is completed before 31-12-2022, then he can file a belated return at any time before the completion of assessment.

*In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession. However such person can declare income higher than 50%

**Section 44AB prescribes the conditions under which an assessee is required to get his accounts audited. It excludes a person from getting books of account audited if he opts for a presumptive taxation scheme under Section 44AD, provided the turnover of the business does not exceed Rs. 2 crores

Consequences of delay in filing the return of income

Delay in filing the return of income may attract certain adverse consequences.

Following are the consequences of delay in filing the return of income:

  • Loss (other than loss under the head “Income from house property”) cannot be carried forward.
  • Levy of interest under section 234A. Levy of fee under section 234F*
  • Exemptions under sections 10A, 10B, are not available.
  •  Deduction under Part-C of Chapter VI-A shall not be available.

* Fee for default in furnishing return of income shall be INR 5,000/-. However, where the total income of the person does not exceed INR 5,00,000/- the fee payable shall not exceed INR 1,000/- and where Taxable Income Exceeds INR 10,00,000/-, the fee payable shall be INR 10,000/-

CONCLUSION

So, with the help of this write up, we have understood that if the deadline of Original Return has been missed, still it can be filed latest by 31st December of the relevant Assessment Year and Not Beyond that.

About Author:

Hi, This insightful article was penned down by Mr.Manpreet S Taneja. Read what he has to say about himself.

Know Me:  One of the torch bearers for an esteemed Institute, I am well liked as CA Manpreet.

I am passionate about managing Finance and Investment and love to explore new avenues. Numbers and formulas have always lured me and now auditing and taxation has become my expertise.

Tax advisory, Financial Reporting, Secretarial compliances and other Managerial considerations are my other prowess one can count on. After working with reputed firms and renowned banks, I have gained rich experience of over 5 years and successfully ventured into practice.

I believe in what Winston Churchill has rightly said “Success is not final; failure is not fatal: it is the courage to continue that counts.” and that is the motivation that drives me towards excellence.

Qualification: Chartered Accountant, B.Com (Hons.)

Specialization: Audit, Taxation, Finance, Bank Audit

Firm Name: ManpreetTaneja& Co.

Mobile No.: 8826953372

Email ID: ms35085@gmail.com

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