Late ITR filing: consequences and how to fix

What happens when you file late

• A late fee applies: up to ₹5,000, or up to ₹1,000 if total income is ₹5 lakh or less
• Interest is charged on any tax still unpaid, calculated monthly
• Business and capital losses generally cannot be carried forward from a belated return
• Refunds arrive later, because processing starts only after you file
• Some choices, such as opting out of the new regime for business income, may not be available after the due date

Option 1: Belated return

A belated return can be filed after the original due date and up to 31 December after the financial year ends, unless the government extends the date. It is filed the same way as a normal return, with the late fee paid before submission.

Option 2: Revised return

If you filed on time but made a mistake, you can file a revised return within the same time limit as the belated return. A belated return can also be revised within that window.

Option 3: Updated return (ITR-U)

If both the original and belated deadlines have passed, an updated return may be filed within the extended time limit from the end of the relevant assessment year, with additional tax on top of the normal tax and interest. It cannot be used to claim a refund, reduce tax, or declare a loss, and it is not available in some cases such as when proceedings have already begun.

What to do now

1. Collect Form 16, AIS, Form 26AS and other documents for the year.
2. Work out tax and interest due, and pay it before filing.
3. File a belated return if the window is still open.
4. If not, check whether an updated return is allowed for your case.
5. E-verify immediately after filing.

How to avoid it next year

• Set a reminder for June, after Form 16 is issued
• Download AIS early and check it for missing income
• Pay advance tax on time if you have income beyond salary
• Let someone track the date for you if you are busy at that time of year

Frequently asked questions