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Ventura Wealth Clients
3 min Read

Imagine the tax season comes to an end. You, however, have failed to file your tax returns and now you find yourself panicking. While it's not ideal, filing a late return comes with its own set of consequences, and knowing what to do next can save you unnecessary stress and financial penalties.

Understanding the delay

First things first, it's important to understand why you missed the deadline. Was it a simple oversight, a lack of clarity about the process, or unforeseen circumstances? Identifying the reason can help you avoid similar situations in the future. Let us look at some common reasons for missed deadlines.

  • Procrastination: We've all been there. The pile of documents grows, the filing date approaches, and before you know it, you're scrambling to meet the deadline.
  • Confusion: Navigating the intricacies of tax filing can be daunting, especially for first-timers. Unclear forms, complex calculations, and unfamiliar terminology can lead to delays.
  • Life events: Unforeseen circumstances like illness, family emergencies, or job changes can disrupt your financial routines and throw your tax filing plans off track.

Facing the consequences

While forgetting to file your ITR on time isn't a criminal offence, it does come with certain repercussions you need to be aware of.

  • Late filing fees: The penalty for filing a belated return ranges from ₹1,000 to ₹10,000, depending on the delay period and your income level. Remember, the longer you wait, the higher the penalty.
  • Loss of refund: If you're due a tax refund, missing the deadline could delay or even prevent you from receiving it. This can be especially frustrating if you were counting on that money.
  • Tax scrutiny: Filing late might raise red flags for the tax department, increasing the chances of your return being selected for scrutiny. This can involve additional documentation requests and inquiries.

Taking action: file a belated return ASAP

The good news is that it's never too late to file your ITR. You can file a belated return up to three months after the original deadline, which in this case falls on December 31st, 2024. The process is similar to filing on time but with the added step of paying the late filing fee. Here's what you need to do:

  • Gather your documents: Before you start, organise all the necessary documents like salary slips, investment statements, medical bills, and bank statements.
  • Choose the right form: Depending on your income and taxable income, you may need to choose the appropriate ITR form (ITR 1, 2, etc.).
  • File online: The easiest and fastest way to file a belated return is through the e-filing portal of the Income Tax Department (https://www.incometax.gov.in/).
  • Pay the late filing fee: Make sure you factor in the late filing fee at the time of payment. You can pay it online or through authorised banks.
  • Keep a copy for your records: Once you've successfully filed your belated return, download and keep a copy for your records.

Minimising the damage

While filing late is not ideal, you can try and minimise the impact.

  • File as soon as possible: The longer you wait, the higher the late filing fee. Don't put it off – get it done ASAP.
  • Be accurate and complete: Ensure your return is accurate and complete to avoid further scrutiny from the tax department.
  • Seek professional help: If you're unsure about any aspect of the process, consider consulting a tax advisor who can guide you through the formalities.

Staying ahead of the curve

To avoid the stress and hassle of missed deadlines in the future, here are some tips.

  • Set reminders: Mark the due date in your calendar or set reminders on your phone to avoid forgetting.
  • Start early: Don't wait until the last minute to begin gathering your documents and filling out the forms. The earlier you start, the better prepared you'll be.
  • Stay informed: Keep yourself updated with any changes in tax laws and deadlines to stay compliant.

Remember, missing the ITR deadline is not the end of the world. By understanding the consequences, taking prompt action, and staying proactive, you can navigate this situation effectively and avoid future complications.

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