ITR Filing on time is essential and there can be some situations when taxpayers might miss the deadline. However, you can still claim an income tax refund if you are eligible for one after you file ITR after the deadline. Let us know how.
Filing a Belated ITR
If you missed the initial ITR filing deadline, you can still file a belated return. A belated return is a late submission of your ITR, which can be filed after the regular deadline but before the end of the relevant assessment year.
For example, if the ITR filing date for the fiscal year 2024-25 is July 31, 2024, you can file a late return until March 31, 2025.
When submitting a late return, you can still receive your Income Tax Refund if you are eligible. However, you should be aware that you may be assessed a late filing fee under Section 234F of the Income Tax Act, as well as interest on the refund.
Steps to File a Belated Return
Filing a condolence request for the condonation of delay
Even if the late ITR filing date has passed (that is, after the assessment year has ended), you can still collect your Income Tax Refund by submitting a condonation request under Section 119(2)(b). This is simply a request to the tax authorities to allow a late filing for legitimate reasons.
To submit this request:
- Submit an application to the appropriate Income Tax authorities.
- Clearly explain why you missed the ITR filing deadline.
- Attach each document that supports your claim.
- Wait for clearance from the tax department, which may take time to process.
- Once your request is granted, you will be able to file your ITR and receive your refund.
Learn More: Procedure to check Income Tax refund status
Are you able to get an Interest on a Late Refund?
Even beyond the ITR filing deadline, if you are qualified for a refund, you may still be able to obtain interest under Section 244A of the Income Tax Act. The interest is computed at a rate of 0.5% per month or part of a month on the refund amount, provided that the delay in receiving the refund was not caused by the taxpayer.
Late Fees and Penalties
If you file your ITR after the deadline, you may have to pay a late charge under Section 234F, as previously stated. The penalty might be up to ₹10,000, based on your taxable income and delay. However, the sooner you file your late return, the lower the interest and penalties.
Moreover, If you want any other guidance relating to Income Tax Return Filing or Income Tax Refund please feel free to talk to our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.