Procedure to File Belated return or Revised Return

Hello Everyone! Welcome back. As we are in the end of the year 2022, we also have some important due dates. Today in our blog we would be discussing about belated return and revised return whose last date is 31st December 2022.

Belated return

If the person fails to file the return of income within the time-limit prescribed in this regard, then as per section 139(4) he can file a belated return. A belated return can be filed at any time 3 months before the end of the relevant assessment year or before completion of assessment, whichever is earlier. So, for FY 2021-23 (AY 2022-23) it is 31st December 2022.

Illustration

Mr. Raja is a trader of agricultural products. Turnover of his business for the previous year 2021-22 amounted to Rs. 84,00,000. He has not opted for the presumptive taxation scheme of section 44AD i.e. not declaring income at 8% of sales. He declared income at less than 8% of sales. What will be the ‘due date’ for filing his return of income for the financial year 202122? If he fails to file the return of income by the due date then by what date he can file a belated return? 

In this case, as Mr. Raja had not opted for presumptive taxation scheme of section 44AD, and declared income at less than 8% of sales, he will be required to get his accounts audited under section 44AB. Hence, the due date for filing the return of income of the year 2021-22 will be 31st October, 2022.

If he cannot file the return of income by the due date, i.e., by 31st October, 2021, then he can file a belated return 3 months before end of the relevant assessment year or before completion of assessment, whichever is earlier.

In other words, he can file a belated return upto 31-12-2022. If the assessment is completed before 31-12-2022, then he can file a belated return at any time before the completion of assessment.

Consequences of delay in filing the return of income.

Delay in filing the return of income may attract certain adverse consequences. Following are the consequences of delay in filing the return of income:  

Loss (other than loss under the head “Income from house property”) cannot be carried forward.

Levy of interest under section 234A.

Levy of fee under section 234F. Fee for default in furnishing return of income shall be Rs. 5,000. However, where the total income of the person does not exceed Rs. 5,00,000, the fee payable shall not exceed Rs. 1,000. Revision of return

Exemptions under sections 10A, 10B, are not available.  

Deduction under Part-C of Chapter VI-A shall not be available.

Revision of return 

Sometimes the taxpayer may omit to include certain information in the return or may commit any mistake at the time of filing the return of income. In such case any unintentional mistake or error or omission in the return of income filed by the taxpayer can be corrected by filing a revised return.

A return can be revised at any time 3 months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. 

So, for FY 21-22 (AY 22-23) it is 31-12-2022. It should be noted that only a return filed under section 139(1) or belated return filed under section 139(4) can be revised. A return of income filed pursuant to notice under section 142(1) of Act cannot be revised under section 139(5).