The deadline for filing belated, revised ITR is proposed to be reduced by three months in Budget 2021 from March 31 of the relevant assessment year to Dec 31 of the assessment year. As per the proposal, this means that the last date for voluntarily filing the ITR for the current financial year, i.e., FY 2020-21 will be Dec 31, 2021. Normally, income tax returns for a financial year have to be filed by July 31 of the following financial year (called the assessment year). Currently, belated and revised ITRs can be filed voluntarily after the normal deadline, up to March 31 of the assessment year. If the March deadline is missed then the taxpayer cannot voluntarily file his/her ITR. ITR can then only be filed in response to a notice from the tax department.
The deadline of March 31 for voluntarily filing of ITR (also the deadline for filing belated ITR) is proposed to be shifted forward to Dec 31 of the assessment year. This means that tax payers get 3 months less to file belated, revised ITRs which is the last chance to file an ITR voluntarily.
Also, the new deadline of filing belated/revised ITR will be applicable from the assessment year April 1, 2021, i.e., for the tax returns filed for FY 2020-21.
As per the explanatory memorandum to the Budget, “Sub-sections (4) and (5) of section 139 of the Act contain provisions relating to the filing of belated and revised returns of income respectively. The belated or revised returns under sub-sections (4) and (5) respectively of the said section at present could be filed before the end of the assessment year or before the completion of the assessment whichever is earlier. With the massive technological upgrade in the Department where the processesunder the Act are moving towards becoming faceless and jurisdiction-less, the time taken to conduct and complete such processes has greatly reduced. Therefore, it is proposed that the last date for filing of belated or revised returns of income, as the case may be, be reduced by three months. Thus the belated return or revised return could now be filed three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.”
Abhishek Soni, CEO & founder, Tax2win.in says, “As per the proposals of today's budget, earlier you can file the ITR up to the end of the relevant assessment year but now taxpayers can file the ITR three months before the end of the relevant assessment year. As per the Memorandum Budget document, this change will be applicable from AY 2021-22.”
Revised income tax returns are filed by an individual in case any mistake is discovered after the filing of original tax returns such as omission of interest income, bank account etc.
On the other hand, if an individual tax payer does not file an original tax return before the due date i.e. July 31 (unless extended by the government),he/she still has the option to file the tax return as belated ITR. However, in case of filing belated ITR, a late filing fee will be levied. According to section 234F of the Income-tax Act, 1961 , late filing fee is levied as follows:
- Rs 5,000 if filed after the due date but on or before December 31
- Rs 10,000 if filed between January 1 and March 31
Late filing fee does not exceed Rs 1,000 if the total income does not exceed Rs 5 lakh.As per tax experts, with reduction in the due date of filing belated ITR, maximum penalty that will be paid by an individual taxpayer will be Rs 5,000 only, as applicable in the cases.
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