A belated return is a return of income filed after the due date prescribed under the Income Tax Act, 1961. Taxpayers are expected to file their income tax returns (ITR) by the due date, usually 31st July for individuals and 31st October for audit cases. However, if a taxpayer misses this deadline, they can still file a belated return within a specified time. While this provides relief, there are certain consequences like late filing fees, interest under Section 234A, and the loss of some benefits such as carrying forward certain losses.
As per Section 139(4) of the Income Tax Act, 1961, if an assessee has not furnished their return within the time allowed under Section 139(1), they may still file a belated return before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. For example, for the Assessment Year 2024–25, the belated return can be filed up to 31st December 2025, unless assessment is completed earlier. However, a late filing fee under Section 234F may apply, and certain losses (like business or capital losses) cannot be carried forward if the return is filed after the due date.
To remember the key facts about Belated Returns, use the mnemonic “LATE FILE”:
- L – Losses (some not allowed to carry forward)
- A – Assessment not yet completed
- T – Three months before end of AY is the deadline
- E – Extra fee under Section 234F
- F – Filed after due date under Section 139(1)
- I – Interest under Section 234A
- L – Legal filing still permitted
- E – Extension not automatic – strict timelines apply
