ITR filing: I have missed the Income Tax Return deadline, can I still claim refund?

Navigating the complexities of Income Tax Return (ITR) filing can often be daunting, particularly when you've missed the prescribed deadline. However, you still have options. While there are penalties and interests involved, you can indeed file your ITR and claim your tax refund.

The deadline for filing ITR for taxpayers who don’t need a tax audit is July 31.  All belated ITRs must be filed before December 31 of the same year.

When you miss this deadline a late fee is levied by the Income Tax Department. A late fee of Rs 1,000 will be levied for filing belated ITR and if the taxpayer’s annual income is above Rs 5 lakh the late fee will be Rs 5,000.  

Interest on tax amount and no option to carry-forward losses

The Income Tax Department imposes an interest rate of 1 per cent per month on the total tax amount if there's a delay in filing the return.  Even a delay of a single day will lead to an interest charge for a whole month.

Missing the ITR filing deadline also leads to the forfeiture of the benefit of carrying forward losses to subsequent years. But, there are exceptions such as losses under the "income from house property" or unabsorbed depreciation, which can still be carried forward.

Fine, imprisonment, and refund claims

Apart from the late fees, a failure to file tax returns can even result in imprisonment. If the tax evaded or payable is more than Rs 25 lakh, this may result in imprisonment ranging from 6 months to 7 years, along with a fine.

Another potential consequence of not filing an ITR on time is a delay or loss in receiving tax refunds. Taxpayers can claim their refund for excess tax paid only after filing ITR. If returns are filed within the prescribed schedule, taxpayers are eligible to receive interest on these excess deductions. However, not filing ITR on time may lead to a long delay or even loss of the tax refund.

Filing a belated return

A belated return can be filed up to three months before the end of the relevant assessment year or before the completion of the assessment, whichever occurs first. To file a belated return, visit the Income Tax Department's e-filing portal and select the appropriate ITR form that corresponds to your income sources. Provide all the necessary information and supporting documents.

It’s important to note that any errors or discrepancies can lead to further complications and scrutiny. Once you've calculated your tax liability, pay any outstanding taxes along with the applicable penal interest. After successfully filing the belated return, the Income Tax Department will process your return and determine the due refund amount, if any.