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Understanding Belated and Revised Income Tax Return Filing

Income Tax Return Filing

When talk about personal finances, we can’t ignore the task of our Income Ta Return filing. ITR Filing is not just important but also our social responsibility. It is essential for the taxpayers to file Income Tax Return on time in order to stay compliant with the tax regulations. But before that you should know about the Income Tax Return and Income Tax Return Filing.

Income Tax Return is a form that has been used by the public for the declaration of their income. In other words, Income Tax Return is a self declaration is a form that has been used by the public for the declaration of their income. Whereas, ITR Filing is the process by which taxpayers (individuals as well as businesses) can report their income, deductions, and credits to the government. Tax authorities use this information to calculate the amount of tax payable or the refund due. But sometimes taxpayers get confused among the Belated ITR and Revised ITR. In this blog, we will discuss the key differences between Belated ITR and Revised ITR.

Before moving ahead, let’s talk about the eligibility criteria of online ITR Filing.

Eligibility Criteria of Income Tax Return Filing

  • If your total income is more than the basic exemption limits of either 2.5 Lakhs, or 3 Lakhs, or 5 Lakhs depend on the taxable limit applicable to you.
  • If you pay the electricity bills of more than Rs. 1 Lakh then you must have to file the ITR.
  • If you have deposited an amount of over 1 Crore in your current bank accounts in a financial year, then tax filing is must for you.
  • If an amount of more than Rs. 2 Lakhs has been spent by you for travelling internationally to foreign country in a financial year, then you are required to file the ITR.
  • If you have assets in foreign countries or have a source of income from outside the country, or have signing authority for any account outside the country, then you must have to file an ITR.
  • If TDS/ TCS (Tax Deducted/ Collected at Source) from the individual is Rs. 25,000/- or more.

If you don’t fulfill the given eligibility criteria of ITR Filing online, you can still file the “NIL ITR”. 

Belated Income Tax Return Filing

If taxpayers missed the original deadline of filing ITR but still want to fulfill their tax obligations, then they have the option of filing Belated ITR. A Belated ITR helps the taxpayers to stay compliant and also makes sure that the financial records of the taxpayers have been updated.

Key Features of Belated Income Tax Return Filing

Let’s discuss about the key features of the belated Income Tax Return Filing that you should know.

  • Deadline of Filing Belated Return

As per the Income Tax Laws, taxpayers can file the Belated Return by December 31st of every assessment year.

  • Carry Forward Losses

It is a major setback for the taxpayers who file a belated return that they will not able to carry forwards their losses including business losses and capital losses to the next years.

  • Penalties and Interests

If the taxpayers file belated return, then it will attract the penalties and interests. If they file a belated return, a penalty of up to Rs. 5,000/- may be levied on the taxpayers as per section 234F of Income Tax Act. Moreover, an interest on the unpaid taxes will also arise from the original due date, until taxpayers has files Income Tax Return.

  • Delays in Refund Amount

Belated Income Tax Return Filing also results in the delayed in getting the refund amount that has been claimed by the taxpayers. 

Reason of Belated Income Tax Return Filing

It is essential for the taxpayers to file the belated Income Tax Return due to the given reasons-

  • If you miss the original due date of filing ITR online, then you should file the belated ITR.
  • It will help the taxpayers to avoid the severe penalties and also to stay compliant.

Revised Income Tax Return Filing

Taxpayers file a revised Income Tax Return in order to correct any errors or mistakes in the original return. As per the Income Tax Act, taxpayers can revise their returns, if they realize the mistakes after filing.

Key Features of Revised Income Tax Return Filing

In this section of the blog, we will discuss the key features of filing revised Income Tax Return that you have to know-

  • No Penalty for Genuine Mistakes

Usually, if taxpayers correct the genuine mistakes in a revised ITR, then no penalty will be imposed on them. But in case, taxpayers misreport their income intentionally then it will attract the penalties.

  • Correction of Errors

Taxpayers can correct the various errors including incorrect income reporting, missed deductions, or wrong calculations in their revised Income Tax Return.

  • Filing Deadline

You can file the revised ITR before the end of the assessment year or before the completion of the assessment (whichever is earlier)

  • Multiple Revisions Allowed

Taxpayers can revise their original returns multiple times within the given timeframe. It will make sure about the accuracy in their filings.

Reasons of Revised Income Tax Return Filing?

It has been required to file the revised ITR because of the reasons given below-

  • There is a need of filing Revised ITR in order to maintain the accurate tax records.
  • If you file revised return to correct your mistakes, it will help in avoiding chances of audit and the penalties from the tax authorities, as a result of incorrect filings.
  • Moreover, revised return will make sure that the taxpayers claim all the applicable deductions and credits, reducing their tax liabilities.

Steps Include in Belated Income Tax Return Filing

Filing a belated return includes a number of steps. In this section, we will discuss about process of filing belated ITR-

  • Log in: First of all, you have to access the e-filing portal of IT department and log into it by using your credentials.
  • Select Assessment Year: After that, you have to select the relevant assessment year for which you want to file ITR.
  • Select ITR Form: After that you have to choose the appropriate ITR Form as per your income sources.
  • Choose Filing Type: Then you have to select the “Filing under section 139(4)” to file a belated return.
  • Enter the Required Details: Then you have to fill all the required details precisely that include deductions, income, and taxes paid.
  • Compute Tax Liability: After that, you have to compute the tax liability and interest u/s 234A/B/C if applicable.
  • Final Submission: At last you have to verify your return and submit it.

 Steps Include in Revised Income Tax Return Filing

Taxpayers who want to file their revised returns they should have to know about the process of filing a revised ITR. In this section, we will tell you about the crucial steps involve in revised ITR Filing-

  • Log in: First of all, you have to access the e-filing portal of IT department and log into it by using your credentials.
  • Select Assessment Year: After that, you have to select the relevant assessment year for which you have filed your original ITR.
  • Select ITR Form: After that you have to choose the appropriate ITR Form as per your income sources.
  • Choose Filing Type: Then you have to select the option of “Filing under section 139(5)” to file a revised return.
  • Enter the Original Details: Then you have to enter the accurate details that you have been filled in your original return including acknowledgement number and filing date.
  • Correct Errors: After that you have to make the necessary corrections to the income, deductions, or any other details. 
  • Compute Tax Liability: After that, you have to recalculate the tax liability as per the revised information.
  • Final Submission: At last you have to verify your revised return and submit it.

Comparison of Belated and Revised Income Tax Return Filing

It is crucial for the taxpayers to understand the key differences between Belated ITR and Revised ITR in order to maintain the taxes effectively. Here are the differences-

Income Tax Return Last Date

  • The Belated ITR Filing last date will be December 31st of the every assessment year.
  • The ITR Filing last date for revised return will be before the end of the assessment year or before the completion of the assessment (whichever is earlier).

Carry forward Losses

  • In belated ITR, there are the restrictions on carrying forward the losses to the next year.
  • In a revised ITR, taxpayers can carry forward the certain losses to the future years.

Refunds

  • Filing a belated return will result in the delays in receiving refunds.
  • If you file a revised ITR, it will result in the accurate refund processing timely.

Penalties and Interest

  • If you file a belated return, it will attract the penalties as per section 234F of Income Tax Act as well as interest on the unpaid taxes.
  • When you file the revised ITR, no penalty will be imposed on you for the correction of genuine mistakes. However, you may face the penalties for the intentional misreporting.

Correction of Errors

  • Taxpayers cannot correct the errors of previously files returns in a belated return.
  • A revised return is specifically used to correct errors or mistakes in the original returns.

Conclusion

It is crucial for all taxpayers to file income tax return accurately and timely. Sometimes, taxpayers feel stressful if they miss the original deadline or make any mistake in filing ITR. At this point the belated and revised ITR come into action. If you miss the original deadline of Income Tax Return filing, you can file the belated ITR within the given period of time. And if there is any error or mistake in your original ITR, so you don’t need to take stress. There is an option of revised ITR Filing online. If you made any mistake you can file the revised ITR. If you have any confusion related to online ITR filing of belated return and revised return, you can seek the expert guidance of ITR Filing Consultants like Legal Pillers.

Legal Pillers have an expert team of professionals, ready to help you at every step of Income Tax Return Filing process. Our team has expertise in belated and revised ITR filing online. You can easily find us by searching “CA near Me for ITR Filing” on Google. So, what are you waiting for? Contact us now.   

You can easily connect with us-

Phone: +91-962527978; +91-9267941961

Email: [email protected]

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