Consequences of Missing the ITR Deadline & How to Fix It
Filing your Income Tax Return (ITR) on time helps you avoid penalties and maintain a clean financial record. Many taxpayers delay filing, but missing the deadline can have serious consequences. Here’s what you need to know.
1. Penalties for Late Filing
Late Fee (Sec 234F)
₹5,000If filed after due date but before 31st Dec.
Low Income Relief
₹1,000If total income is below ₹5 Lakh.
Interest Alert (Sec 234A): Interest at 1% per month is charged on the outstanding tax liability until the return is filed.
2. Loss of Benefits
- No Carry Forward of Losses: Business or capital losses cannot be carried forward if you miss the deadline.
- Delayed Refunds: Any tax refund due will be processed late.
- Loan Rejections: Banks often reject loan applications if ITRs are not filed on time.
3. How to Fix Mistakes
If you missed the deadline, don't panic. You can:
- File a Belated Return: You can file before the end of the assessment year (with penalty).
- Revise Return: If errors occur in the belated return, you can still revise it.