Income tax (I-T) return before July 31 can file the same by the end of calendar year i.e., December 31.
This means the tax payers who were supposed to file their income tax returns under section 139 (1) before July 31 can still file a belated tax return before the year comes to a close.
“It is important for the tax payers to file the tax returns as soon as possible prior to Dec 31, otherwise the tax department can send them notice demanding the tax payable,” says chartered accountant Chirag Chauhan from CA Chauhan & Company.
The small tax payers might like to believe that tax department perhaps does not have the time or resources to demand tax liability from them. On this Mr Chauhan says, “As a matter of fact, anyone with an income more than ₹2.5 lakh is supposed to pay income tax and with everything getting automated – the notices are sent via email as well. Moreover, the department has all the data based on the previous returns that were filed,” adds Chauhan.
It is important to realise that this deadline applies to all types of taxpayers, including individual, corporate, audit, and non-audit.
Applicable fee
It is vital to note that the taxpayers who have failed to file the tax return on time will be made to pay fee under section 234F of the Income Tax (I-T) Act.
| Taxable income | Fee under section 234F |
| Less than ₹5 lakh | ₹1,000 |
| More than ₹5 lakh | ₹5,000 |
(Fee applicable under section 234F)
The amount of fee that is meant to be paid depends on the quantum of taxable income. When the income is lower than ₹5 lakh, the fee to be paid is ₹1,000, whereas it rises to ₹5,000 when the taxable income is more than ₹5 lakh.
It is also worth noting that the ₹5,000 fee is payable only when the belated return is filed on or before the end of calendar year. Else, a higher fee of ₹10,000 is charged.
Interest on refund of tax
Aside from the fee, tax payers stay ineligible for interest they are set to receive in case of refund.
In other words, the interest of 0.5 percent per month which is payable to tax payee in case of refund -- is paid when the return is filed before the last date. The tax assessees who pay belated tax return are not eligible for the refund.
