Income Tax: What is a belated return and how can you file it after the last date? All about time limit, penalty and more

Income Tax: Today is the last date to file an income tax return (ITR) for the assessment year 2025-26 after the Central Board of Direct Taxes (CBDT) extended the last date by one day. So far, over 7.30 crore returns have already been filed, the Income Tax (I-T) Department tweeted.

However, if you miss filing the return today as well (which is not recommended at all), then the alternative is to file a belated income tax return under section 139(4).

What is a belated return?

A belated income tax return is one filed after the last date but before 31 December 2025. It attracts a late fee of ₹5,000 but deprives the taxpayer of carrying forward losses.

Why should one file a belated return?

A belated return can be filed when one fails to file a return on time before the last date. This means the taxpayer missed filing the return before 16 September. This could happen due to various reasons.

Why should one refrain from filing a belated return?

One should avoid filing a belated return, as it carries a penalty of ₹5,000 and removes the right to carry forward losses.

Is belated different from updated return?

Yes, belated return is different from updated return. Updated return (ITR-U) was introduced in the Finance Act 2022. With ITR-U, taxpayers can correct tax filing errors, add omitted income, or rectify misreporting.

Updated return is a provision that permits taxpayers to update or file their ITRs on payment of additional taxes in case of errors or omissions. This gives an opportunity for voluntary compliance to taxpayers to rectify errors/omissions with an objective to reduce litigation. Taxpayers can file updated returns for up to four years.

What is the latest when updated return can be filed?

The updated return deadline is four years (Finance Act 2025) from the end of an assessment year. Earlier, this time limit was two years. More than 90 lakh taxpayers have voluntarily updated their incomes by paying additional tax, Finance Minister Nirmala Sitharaman told Parliament while presenting Budget 2025.

When can you not file an updated ITR?

You cannot file an updated return when there is a ‘nil’ return or a return of a loss. Updated returns cannot be filed when filing has the effect of decreasing the total tax liability, or when it results in a refund or increases the refund due.

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