How can you File an ITR after the Due Date and What are its Consequences?

Are you one of those who has missed filing the return of income before the deadline of 31 December, 2021 and wondering if you can still file the return? If so, push your worries aside, as you can still file the return of income. Here is how and its consequences-

Belated Return

If the return of income is filed after the due date i.e 31 December, 2021 it shall be considered as belated return u/s139(4) of the Income Tax Act, 1961. The belated return can be filed till 31 March 2022. However, for filing such a return a late filing fee shall be levied.

Consequences of Filing Return of Income after Due Date

Late Filing Fee under section 234F

A Belated Return would attract late filing fees under section 234F of the Income Tax Act, 1961. The same is presented in a tabular form below-

Interest under section 234A

Apart from late filing fee u/s 234F, an interest at the rate of 1 percent per month or part thereof shall be charged on the outstanding tax liability under section 234A. The period for levy of interest shall commence from the end of the due date of filing of return and shall continue to be levied till the date of filing of return of income.

Further, if the outstanding tax liability is more than Rs. 1 lakh, interest under section 234A shall be levied from the date of original due date till the date of filing of return of income. The original due date for filing of return of income of A.Y 2021-22 was 31 July, 2021.

Example- If your tax liability is Rs. 2 lakh and you have not filed the return of income on or before the due date, then interest will be computed from 1 August, 2021 till the date of filing of return of income. However, if your tax liability is Rs. 90,000/- and you have not filed your return of income on or before the due date, then interest will be computed from 1 January, 2022.

It is clear from the above example that, in case your tax liability exceeds Rs. 1 lakh, then it is better to compute the taxes and pay it before the original due date in order to avoid interest under section 234A even though you are delaying your filing of return of income.

Carry Forward of Losses

One more point to be noted if you are filing a belated return is that you won’t be allowed to carry forward any losses except loss from house property and unabsorbed depreciation. In other words, loss from business or profession, long term or short term capital losses, speculation loss or loss under head income from other sources cannot be carried forward to next financial year if the return of income is not filed within the due date.