If you file your return within the due date, you need not pay any penalty for late filing of Income tax return, you can claim maximum deductions which are allowed by the government and you can also carry forward your losses to future years.

Click here to know the due dates for filing your return of Income (ITR)

I missed my Income Tax Return Deadline - What do I do now?

Don't worry, you can file your return within 31st December of the financial year for which you are filing your return of Income. This return is called a "belated return of income"

But note this, you should pay a penalty of Rs 5,000 (Rs nil if your income is below Rs 2.5 lakhs and Rs 1,000 if your income is below Rs 5 lakhs) - for filing your return of income after the due dates.

The lawmakers have reduced 3 months from the maximum time allowed to file your return of income. Previously it was till the 31st March of the next financial year, now it is 31st December of the next financial year.

Also note: The last dates for filing the belated return of income and the last date for revising the return of income is the same. You can not revised return of income after the 31st of December of the next Financial Year.

Upto FY 2020-21, the government had extended the last date for filing belated return of income to 31st March, 2022 in light of the COVID -19 pandemic.

You need to File your Belated Income Tax Return (ITR) Quicker - Here is why

So, even if you missed your last date of filing your Income Tax Retturn, you should try to file a belated return, albeit paying a penalty, for availing the following advantages:

(1) You can only claim a refund of income tax when you file your return of income.

(2) Although most deductions will lapse if you dont file the ITR within the due date, you can still claim losses from house property if you filed a belated return.

(3) If your tax liability is zero, you will not be fined a penalty simply for filing your returns late.

Still, filing a belated returns is a kick on the teeth of tax payers because of the following drawbacks of belated return over a regular return of Income.

(1) Penalty

A maximum penalty of Rs 5,000 will be attracted in normal cases for filing a belated return of income, with the following exceptions:

Exception: Penalty can not exceed Rs 1,000 where: The Tax Payer has an income of less than Rs 5 lakhs.

(2) Interest on outstanding tax (under section 234A (of Income Tax Act, 1961))

If you have an unpaid tax liability, you will be liable to pay interest as per the provisions of section 234A (of Income Tax Act, 1961) if you file a belated return of income.

However, If your tax liability is zero, you will not be fined a penalty simply for filing your returns late.

(3) Carry forward of losses and Claiming of Deductions: Not allowed

Please note that you can not benefit from the carry forward of losses provisions if you dont file the ITR within the due date.

You can still claim losses from house property if you filed a belated return, though.