Introduction
Section 139(3) of the Income Tax Act, 1961 deals with the filing of belated income tax returns. It specifies the deadline for filing the returns after the original deadline has passed. The provision is applicable to individuals, Hindu Undivided Families (HUFs), and other entities who have not filed their tax returns within the original due date. In this blog, we will discuss Section 139(3) of the Income Tax Act in detail.
What is a belated return?
A belated return is a tax return filed after the original due date has passed. For example, if the deadline for filing the return for the financial year 2021-22 is 31st July 2022 and an individual files the return on 15th September 2022, it is considered as a belated return.
Deadline for filing belated return
The deadline for filing a belated return is specified under Section 139(3) of the Income Tax Act. As per the provision, an individual can file a belated return before the end of the relevant assessment year. For example, the deadline for filing a belated return for the financial year 2021-22 is 31st March 2023.
Consequences of filing a belated return
Filing a belated return can have certain consequences for taxpayers. Some of these consequences are as follows:
Late filing fees: If a taxpayer files a belated return, he or she is liable to pay a late filing fee. The fee is levied under Section 234F of the Income Tax Act and can range from Rs. 1,000 to Rs. 10,000, depending on the delay in filing the return.
Loss of interest: If the taxpayer is entitled to a refund, he or she may lose out on the interest on the refund amount if the return is filed belatedly.
Cannot revise return: If the return is filed after the due date, the taxpayer cannot revise the return if there are any errors or omissions in the return.
Prosecution: In certain cases, if the belated return is filed after the tax department has initiated proceedings against the taxpayer, it may result in prosecution under Section 276CC of the Income Tax Act.
In addition to the consequences mentioned above, filing a belated return can also lead to increased scrutiny by the tax department. The tax department may view belated returns with suspicion, and may scrutinize them more closely than returns filed within the due date. This may result in further enquiries, and in some cases, an audit by the tax department.
Furthermore, if a taxpayer has tax liabilities that are unpaid after the due date, interest under Section 234A of the Income Tax Act is charged at the rate of 1% per month or part of a month until the tax is paid. The interest is calculated from the due date of filing the return until the date of actual payment.
It is important to note that even if a taxpayer has missed the original due date for filing the return, it is still possible to file a revised return within the prescribed time limit. However, the option to file a revised return is not available if the return is filed after the belated return deadline.
Another consequence of filing a belated return is that the taxpayer may lose out on certain tax benefits. For instance, if the taxpayer has incurred any capital losses during the financial year, he or she may not be able to carry forward those losses to subsequent years if the return is filed after the due date.
Moreover, if the taxpayer has foreign assets or income, the belated return may result in additional compliance requirements. The taxpayer may need to file additional forms or disclosures related to the foreign assets or income, which may result in additional penalties if not filed in a timely manner.
It is important to note that filing a belated return does not absolve the taxpayer from any tax liabilities. The tax liability still exists, and the taxpayer is required to pay the tax along with any interest and penalties that may have accrued.
Finally, it is worth noting that the tax department has been taking steps to simplify the income tax filing process and reduce the compliance burden on taxpayers. For instance, the tax department has introduced the pre-filled income tax return (ITR) forms, which automatically populate certain fields based on the taxpayer’s income and tax details. The pre-filled forms can help reduce errors and simplify the filing process.
Conclusion
Filing income tax returns on time is important for taxpayers as it not only helps them avoid any penalties but also ensures that they are compliant with the law. However, if a taxpayer misses the deadline for filing the return, he or she can still file a belated return within the specified time limit under Section 139(3) of the Income Tax Act. It is advisable to file the return as soon as possible to avoid any additional penalties or consequences.
Read more useful content:
- section 234e of income tax act
- section 286 of income tax act
- section 90a of income tax act
- section 40a(7) of income tax act
- section 226(3) of income tax act
- section 24 of income tax act
Frequently Asked Questions (FAQs)
- What is Section 139(3) of the Income Tax Act?
Section 139(3) allows taxpayers to file a belated income tax return within a specified time limit after the original due date.
2. What is the time limit for filing a belated return?
The time limit for filing a belated return is the end of the assessment year or before the completion of the assessment, whichever is earlier.
3. Is there any penalty for filing a belated return?
Yes, taxpayers who file a belated return are subject to a penalty of up to Rs. 10,000.
4. Can a taxpayer revise a belated return?
No, taxpayers cannot revise a belated return. The option to revise a return is only available if the return is filed within the original due date.
5. What happens if a taxpayer fails to file a return even after the belated return deadline?
If a taxpayer fails to file a return even after the belated return deadline, the tax department may initiate penalty proceedings.
6. Is it mandatory to file an income tax return even if the taxpayer’s income is below the taxable limit?
No, taxpayers whose income is below the taxable limit are not required to file an income tax return.
7. Can a taxpayer claim a refund if he or she files a belated return?
Yes, taxpayers can claim a refund if they have paid excess tax during the year. However, the refund may be delayed if the return is filed after the due date.
8. Can a taxpayer carry forward losses if the return is filed after the due date?
No, taxpayers may not be able to carry forward losses if the return is filed after the due date.
9. Does filing a belated return attract increased scrutiny from the tax department?
Yes, the tax department may scrutinize belated returns more closely than returns filed within the due date.
10. Can a taxpayer seek professional assistance for filing a belated return?
Yes, taxpayers can seek the assistance of a tax professional to help them file a belated return and navigate the compliance requirements.
