Belated Return Defined: Taxpayers can file a Belated Return under section 139(4) of the Income Tax Act if they miss the initial filing deadline.
Eligibility Criteria: Individuals who haven't filed their return on time can opt for a Belated Return.
Consequences of Late Filing:
Interest Penalty (Section 234A): 1% per month on the outstanding tax amount.
Late Filing Fees (Section 234F): Maximum penalty of INR 5,000, depending on taxable income.
Limitations:
Losses Carried Forward: Capital gains and Business losses can't be carried forward.
Disallowed Deductions: Certain deductions aren't allowed.
Interest on Refund: Delay may result in losing interest on the refund.
Tax Regime Change: Not possible when filing a Belated Return.
Notice from Income Tax Department: Failure to file may prompt a notice from the department.