How to file ITR if delayed, modified, updated

IT laws require all assessees to file their ITRs on or before the due date. But what if a taxpayer is not able to file it within the due date? Can they file it after the due date and are there any consequences? What if the taxpayer files ITR before the deadline but there is an unforeseen mistake in furnishing ITR? Can such ITR be revised?

All such small but important questions can be addressed with the concepts of Delayed Returns, Revised Returns, Updated Returns and Defective Returns.

delayed return

An ITR which is filed after the due date of return (31st July/31st October/30th November) is known as delayed return. Delayed return is filed by the assessee who misses the original deadline but can still file his tax return.

Delayed return under section 139(4) of the IT Act can be filed up to 31st December of the relevant assessment year, provided the assessment is completed. While the purpose of late returns is to provide an additional opportunity to taxpayers who miss the deadline due to some unavoidable reason, late return submission has three major disadvantages. Firstly, interest will be charged at the rate of 1% per month on unpaid taxes under section 234A. Second, late fees 1,000 for income below 5 lakh more For income above 5,000 5 lakh is charged under section 234F. Last, if the loss statement is submitted after the due date, many losses such as capital and business losses cannot be carried forward for adjustment in subsequent years.

revised return

If a taxpayer has filed original or belated ITR, but later on account of a genuine mistake, any omission or incorrect statement is discovered, he/she has the right to revise his/her tax return under section 139(5) of the IT Act. is an option. Revised return is a kind of modification of the return furnished earlier in case of any mistake or negligence on the part of the assessee.

The amended return can be filed by 31st December of the relevant assessment year, subject to the completion of the assessment. Interestingly, the delayed returns can also be revised within the time limit and the revised returns can be revised again to correct any omissions or incorrect statements made in the earlier revised return.

updated return

The Finance Act, 2022 has introduced a new section 139(8A) as a last option, to declare actual income without suppression or understatement of income or without further details of expenditure/loss, if any. The person is late or has missed the deadline for filing the amended return. This facility can be availed even when the assessee has furnished the original return. Updated return filed within 12 months from the end of the assessment year will be taxed @ 25%, while any return filed after 12 months but before 24 months from the end of the relevant assessment year will be taxed @ 50%. But the updated return comes with several restrictions as the tax department wants to ensure that there is no loss of revenue due to this additional opportunity. An updated return cannot be filed if it declares a return of loss or it reduces the total tax liability or results in a refund of tax. If a search has been initiated or a survey is conducted, even the updated return cannot be filed. Once an updated return is filed, another revised updated return cannot be submitted for the same year.

defective return

If an ITR is not duly filed or the return is furnished with certain defects, the Assessing Officer may declare such return as a defective return. However, with the introduction of online utilities, the chances of defects have reduced significantly, any notice issued by the IT department for defective returns must be taken into account. If the return is declared defective and the defect is not rectified within 15 days of the notice, the return will be treated as invalid return, i.e., it will be deemed that no return was filed and interest, penalty and interest will be charged accordingly. Fine will be imposed.

Kashif Ansari is an assistant professor at Hansraj College, University of Delhi.