Under existing income tax rules, an income tax return (ITR) needs to be submitted annually with the tax authorities. ITR is best defined as a statement of income from various sources, details of tax saving investments/donations, applicable income tax liability, tax deducted at source (TDS), advance tax paid, balance tax payable, etc. provided by the tax assesse. Typically the last date for timely submission of ITR is the 31st of July each year however this usually gets extended by Government order.
What is a Revised Return?
In case you have already completed the process of filing your taxes and later find omissions or errors in the existing ITR, you can make corrections by filing a revised return. The rules of filing a revised return are governed by Section 139(5) of the Income Tax Act, 1961.
When can you file a Revised Return?
The following are some of the key cases when you are eligible to file a revised return:
- If you have already filed an original return u/s 139(1) and noticed errors/omissions or
- If you have made errors in filing your belated returns u/s 139(4).
There is however a pre-determined time limit for filing revised ITR. Under existing Income Tax Return filing rules, a revised return needs to be filed either:
- Prior to completion of the applicable assessment year or
- Prior to completion of the assessment, whichever date is earlier.
Therefore a revised return for AY 2018-19 was to be submitted either by 31st March 2019 or before you return was assessed and you received an intimation u/s 143(1) by email/paper copy sent by post.
What is a Belated Return?
If you file your Income Tax Return after the due date (usually 31st July unless extension has been provided by Government order) but before the end of the assessment year, i.e. 31st March of the subsequent year, it is deemed to be a belated return. For example, for AY 2018-19, due date of filing was extended to 31st August, thus belated returns for the fiscal could be filed from 1st September 2018 to 31st March 2019.
Penalty for Filing Belated Return
While you are allowed to file a belated return by the end of an assessment year, you are liable to pay a penalty for the delayed filing of your ITR. In AY 2018-19, the penalty for filing belated returns u/s 234F was as follows:
|Net Taxable Income||Filing Date||Applicable Penalty|
|Up to Rs. 5 lakh||Any date after due date and on or before 31st March 2019||Rs. 1,000|
|Over Rs. 5 lakh||After due date but on or before 31st December 2018||Rs. 5,000|
|Over Rs. 5 lakh||Between 1st January 2019 and 31st March 2019||Rs. 10,000|
Penal Interest on Due Tax when Filing Belated Returns
While you are liable to pay a penalty for delayed filing of ITR, you are also required to pay penal interest on any unpaid tax dues by the due date. As per Section 234A rules, penal interest on unpaid tax dues is 1% simple interest per month calculated from tax payment due date. This penal interest is payable in addition to the tax amount due and the belated filing penalty. You do not have to pay penal interest in case you do not have any tax dues at the time of filing belated returns.
Things to Keep in Mind Related to Revised and Belated Returns
The following are the key things to keep in mind regarding Revised and Belated Returns:
- Keep track of ITR due date and file your income tax on time.
- Ensure that you keep all applicable documents handy in order to file ITR accurately.
- Double check your ITR after filing and prior to e-verification to file a timely revised return.
- Ensure you pay your taxes on time to save money on penal interest payment.
- File your taxes within the due date and save on the hefty belated returns penalty.