Belated Return

What it means

A belated return is an income tax return filed after the normal due date but within the extra time the law allows. It is the “late but still allowed” return. You can still report your income and claim refunds, but you pay a late fee, may pay interest, and lose some benefits.

How it works

• Normal due dates (for income of FY 2025-26): 31 July 2026 for most individuals (ITR-1 and ITR-2), 31 August 2026 for non-audit business and professional cases (ITR-3 and ITR-4), and 31 October 2026 for audit cases

• Last date for a belated return: 31 December after the end of the year, so 31 December 2026 for FY 2025-26 income

• Late fee (section 234F of the old Act): ₹5,000 if total income is above ₹5 lakh, ₹1,000 if it is ₹5 lakh or less. No fee if income is below the basic exemption limit.

• Interest (section 234A of the old Act): 1% a month on unpaid tax from the day after the due date until you file

• A belated return can be revised. From Budget 2026, revised returns can be filed up to 31 March following the year end, with a fee if filed after 31 December.

Example

Pooja runs a small consultancy. Her total income for FY 2025-26 is ₹14,00,000. After TDS and advance tax, ₹30,000 tax is still unpaid. Her due date was 31 August 2026, but she files on 20 November 2026.

• Late fee: ₹5,000, since her income is above ₹5 lakh

• Interest under 234A: September, October and November count as 3 months. 1% x 3 x ₹30,000 = ₹900

• Total before filing: ₹30,000 + ₹900 + ₹5,000 = ₹35,900, plus any interest for short advance tax

If she had a business loss that year, she could not carry it forward to set off against future profits.

Key points to remember

• Business losses and capital losses cannot be carried forward in a belated return. Loss from house property can.

• The old tax regime can be chosen only in a return filed by the due date. In a belated return, the new regime applies by default.

• Refunds are still allowed, but interest on the refund may be lower.

• Pay the tax first, then file. A return filed without paying the tax due is treated as defective.

• If you miss 31 December too, the only route left is an updated return (ITR-U), which comes with additional tax.