What To Do If you Miss the ITR Filing Deadline?

The Income Tax Return (ITR) has to be filed on time, as per law, by any assessees who are eligible to do so. Many miss the deadline, though, either because of the nonavailability of required documentation or just an oversight or owing to some other compelling circumstances. If you're amongst them, rest assured, as that just is not the end. If the deadline was missed, here is what can be done.

1. File for Belated Return                                                                                                                                                 

If the original filing deadline (usually July 31st for most individuals) was by any chance missed, the first thing that should be done is to file the belated return. As per the Income Tax Act, belated returns can be filed until December 31 of the particular assessment year. You can file this through the income-tax e-filing portal.                                                                                                  

Note: A belated return attracts a penalty under Section 234F.

• ?1,000 if your income is below ?5 lakhs.
• ?5,000 if your income is above ?5 lakhs.

2. Pay Interest and Penalties                                                                                                                        

Payment of taxes having missed the deadline will result in the accrual of interest under:

• Section 234A: Interest for delay in filing return.
•  Section 234B & 234C: Interest for non-payment or short payment of advance tax.

Outstanding dues must be cleared to avoid further legal or financial implications.

3. Missing Out on Certain Benefits                                                                                                                

Late filing can mean:

• Loss of interest on refund: Refund interest starts accruing from the date of filing the return, not the due date itself.
• Loss of carry forward of losses: Losses under capital gains or business income cannot be carried forward unless the filing engages to be done before the due date.

4. File at the Earliest Available Opportunity                                                                                                 

The longer you procrastinate, the more penalties and interest you accrue. Early filing of a belated return helps to lessen the financial damage. Ensure that all your papers, namely Form 16, Form 26AS, TDS certificates, and bank statements are in place. 

5. Think of Filing a Revised Return (if Required)                                                                                       

Even though you have filed the belated returns and again there arise some errors or omissions in respect to the belated returns, then you are eligible to file a revised return before December 31 of the assessment year. This helps in rectifying errors and avoiding scrutiny.

6. Seek Professional Help                                                                                                                           

You should seek the services of an expert or chartered accountant in case you are not clear as to how to proceed or if it is difficult (viz. foreign income, capital gains, or different sources of income). They will provide you with guidance, ensuring that you remain in compliance with the latest rules.

Final Thoughts                                                                                                                                         

Missing the ITR filing deadline is already a negative situation to get into; "but" that does not mean it is the end of the road. Quickly acting and maintaining compliance throughout are the key aspects; at the same time, do not repeat the same mistake next year. Make it a habit to prepare your financial documents well in advance and set reminders just before the due date every year. Apart from saving you from paying late fees, timely filing will keep your financial records neat and transparent.