delayed income tax return
If a person misses the original due date of filing the tax return, he can use: delayed ITR To file tax returns so as to avoid any adverse action of Income Tax Department. It has been filed under section 139(4) of the Income Tax Act.
But taxpayers have to pay penalty while filing ITR late. Penalty is imposed under section 234F of the Act. For small taxpayers whose total income does not exceed Rs 5 lakh, the penalty will be Rs 1,000 or less. For others, it is Rs 5,000. No penalty is applicable if gross total income is less than Rs 2.5 lakh.
Abhishek Soni, CEO, ITR filing website Tax2Win.in says, “Before a taxpayer files late ITR, he has to deposit a late filing fee. This amount needs to be deposited even if there is a self-assessment Tax is payable or not. In addition, if any self-assessment tax is payable or there is any shortfall in advance tax, penal interest will also be levied.”
Revised ITR
If a person makes a mistake while filing the original ITR, he has the option to rectify the mistake through the amended ITR. For example, if a person forgets to disclose interest from bank account or FD in ITR, he can file a revised ITR to rectify the mistake.
Soni says, “While filing the amended ITR, if additional income is reported in the ITR, the individual may also have to pay additional income tax. In addition, penal interest may be applicable on such tax paid.”
Revised ITR is filed under section 139(5) of the Income Tax Act. As per income tax laws, the last date for filing revised ITR is 31st December – similar to a belated ITR. An individual can also modify the delayed ITR. However, if a person files ITR late at the last minute, he/she will not get a chance to file the revised ITR if the mistake is detected later.
There is no limit on the number of times you can file Revised ITR. However, tax experts advise that one should not revise ITR excessively as it may invite scrutiny from the Income Tax Department.
updated return
It was introduced in the budget 2022. An ITR-U can be filed only after the end of the relevant assessment year, but within 24 months from the end of the relevant assessment year. Thus, even if you have filed an original or revised or delayed ITR or have completely omitted, you can still file a Update ITR,
Soni says, “Taxpayers should note that after filing the original ITR, they have to file a revised ITR before December 31 to rectify the mistakes made. However, if a taxpayer missed the date of filing the revised ITR If a person has missed the original ITR filing deadline, he can file a delayed ITR before December 31. If the delayed ITR deadline is missed, she can file an updated return.”
The updated return u/s 139(8A) of the Income Tax Act can be filed using the ITR-U form. But there are certain conditions while filing the updated return. For example, an updated return cannot be filed to claim a reduced income, loss or income return. If a person is filing ITR-U for reporting income not correctly reported in the earlier form, he/she will have to pay penalty on additional tax liability. The person has to mention the reason for filing ITR-U.
Updated returns can be filed up to two years after the end of the relevant assessment year. Hence, individuals can now file ITR-U for FY 2020-21 and FY 2019-20.
Additional penalties are payable while filing ITR-U. Soni says, “An additional tax of 25% on tax and interest is payable if ITR-U is filed within one year from the end of the relevant assessment year. Additional tax of 50% on tax and interest is payable on ITR -U is filed after the end of one year but before the end of the second year from the end of the relevant assessment year.”