Meaning-
Belated Return- means, if a person fails to file the return of income
before the due date as prescribed under Act, or fails to file return within the time prescribed under notice 142(1) issued by assessing authority. He can still file his return even after the due date is called belated return u/s 139 (4).
Time period for filing belated return u/s 139(4)
Belated return can be filled any time before the completion of relevant assessment year or before the completion of assessment, whichever is earlier.
Example-
Mr. X has not filed his income tax return for the financial year 2017-18, before the due date i.e. on 31.08.2018, can he file his return after the due date?
Answer-
Mr. X has not filled his return before the due date i.e. 31.08.2018, he can file his return on or before 31.03.2019, that return is called belated return. (Belated return can be filled before the completion of relevant assessment year i.e. 2018-19 or before the completion of assessment, whichever is earlier).
Penalty u/s 234F for Late Filing of Income Tax Return-
- If the taxable income is below Rs. 5,00,000 Penalty will be Rs. 1,000
- If the taxable income is above Rs. 5,00,000:-
- filed before 31st December Penalty will be Rs. 5,000
- filled after 31st December Penalty will be Rs. 10,000
Interest u/s 234A for late Filling-
- If a belated return is filed after the Income tax due date, the assessee has tax liability, he will be liable to pay tax along with interest @ 1% per month.
- If a belated return is filed after the Income tax due date, the assessee has no tax liability, he will not be liable to pay any interest.
Example-
Mr. X has not filed his income tax return for the financial year 2017-18, before the due date i.e. on 31.08.2018, he has filed his return on 12.11.2018. His taxable income was Rs. 4,20,000 for the year 2017-18. His tax liability comes to Rs. 8,840. Whether he has any liability for interest or penalty?
Answer-
Mr. X has not filled his return before the due date i.e. 31.08.2018, he has filed his return later on 12.11.2018. His liability is as under-
- Tax Amount = 8,840
- Interest u/s 234A = 354 i.e.(Rs. 8,840 x 1% x 4 months)
- Penalty for Belated Return = 1,000 (Taxable income below Rs. 5,00,000)
Consequences for filing Belated Return u/s 139 (4) –
- Cannot Carry forward losses- If you have filed a belated return, you cannot carry forward losses (except loss from house property). Losses under the following heads of income: Income from business and profession including speculation business, capital gains, and income from other sources cannot be carried forward in case a belated return is filed by the assessee.
- Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available.
- Levy of fee under section 234F.
- Levy of interest under section 234A.
Provision for filing Belated Return-