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What is belated return under Income Tax Act?
What is a Belated Return under the Income Tax Act? A belated return under the Income Tax Act, 1961 refers to an Income Tax Return (ITR) that is filed after the due date under Section 139(1) but before the deadline allowed under Section 139(4). Time Limit for Filing a Belated Return (Section 139(4))Read more
What is a Belated Return under the Income Tax Act?
A belated return under the Income Tax Act, 1961 refers to an Income Tax Return (ITR) that is filed after the due date under Section 139(1) but before the deadline allowed under Section 139(4).
Time Limit for Filing a Belated Return (Section 139(4))
Consequences of Filing a Belated Return
1. Late Filing Fees under Section 234F
2. Interest on Unpaid Tax (Section 234A)
3. Loss of Carry Forward of Losses
4. Impact on Refunds
5. Higher Chances of Scrutiny or Notice
Can a Belated Return be Revised?
Yes! Under Section 139(5), you can revise a belated return before 31st December of the assessment year or before completion of assessment, whichever is earlier.
Recent Changes Post Budget 2025
If you miss the belated return deadline, you can file an updated return within 48 months, but additional tax liability applies.
Key Takeaways
✔ Always try to file your return before the due date to avoid penalties.
✔ If you miss it, file a belated return before 31st December of the next assessment year.
✔ Pay outstanding tax and interest while filing to avoid further penalties.
✔ Losses (except house property losses) cannot be carried forward if the return is belated.
Read:What are the consequences of late filing of return after due date or say late return?
See lessHow much Interest is payable on failure to deduct or collect and payment of TDS under Income Tax Act?
Interest on Failure to Deduct, Collect, or Pay TDS Under the Income Tax Act If you fail to deduct, collect, or deposit TDS/TCS on time, the Income Tax Act, 1961 imposes interest penalties under Sections 201(1A) and 206C(7). Interest for Failure to Deduct TDS – Section 201(1A) If a person responsibleRead more
Interest on Failure to Deduct, Collect, or Pay TDS Under the Income Tax Act
If you fail to deduct, collect, or deposit TDS/TCS on time, the Income Tax Act, 1961 imposes interest penalties under Sections 201(1A) and 206C(7).
Interest for Failure to Deduct TDS – Section 201(1A)
If a person responsible for deducting TDS fails to deduct or deducts a lower amount, the following interest is charged:
📌 Example:
Read:What is the penalty for non filing of quarterly TDS return?
See lessHow much Interest is need to pay on default of payment of Advance Tax?
Interest on Default in Payment of Advance Tax – Sections 234B & 234C Paying Advance Tax on time is crucial to avoid interest penalties under the Income Tax Act, 1961. If you miss the deadline or pay an insufficient amount, interest is levied under Sections 234B and 234C. 1. When is Interest PayaRead more
Interest on Default in Payment of Advance Tax – Sections 234B & 234C
Paying Advance Tax on time is crucial to avoid interest penalties under the Income Tax Act, 1961. If you miss the deadline or pay an insufficient amount, interest is levied under Sections 234B and 234C.
1. When is Interest Payable Under Section 234B?
Interest under Section 234B is applicable when:
✅ You have paid less than 90% of your total tax liability before the end of the financial year.
✅ The remaining tax liability is ₹10,000 or more after deducting TDS/TCS and advance tax.
📌 Interest Calculation (Sec 234B)
📌 Example:
2. When is Interest Charged Under Section 234C?
Interest under Section 234C applies when advance tax is not paid as per the prescribed due dates:
📌 Example:
How to Avoid Interest on Advance Tax?
✔ Plan your tax payments based on estimated income.
See less✔ Use TDS/TCS credits to reduce advance tax liability.
✔ Pay any shortfall before due dates to avoid interest.
✔ Use a tax calculator to check advance tax obligations
What are the rate of TDS and threshold limit on various transactions?
TDS Rates and Threshold Limits for FY 2025-26 TDS (Tax Deducted at Source) is applicable on various payments such as salary, rent, professional fees, and purchase of goods. Below is a simplified table showing applicable TDS rates and their threshold limits. Section Nature of Payment TDS Rate (%) ThrRead more
TDS Rates and Threshold Limits for FY 2025-26
TDS (Tax Deducted at Source) is applicable on various payments such as salary, rent, professional fees, and purchase of goods. Below is a simplified table showing applicable TDS rates and their threshold limits.
1,00,000 (Senior Citizens)
2 (Others)
1,00,000 (Aggregate Annual)
2 (Plant/Machinery)
Key Points to Remember:
✅ If PAN is not provided, a higher TDS rate (usually 20%) is applicable.
See less✅ Some sections have lower TDS rates for certain payments made to individuals.
✅ TDS must be deducted at the time of payment or credit, whichever is earlier.
What is TCS and where it is applicable?
Tax Collected at Source (TCS) and Its Applicability What is TCS? Tax Collected at Source (TCS) is a tax that a seller collects from the buyer at the time of sale of specified goods or services. The seller is required to collect TCS at a prescribed rate and deposit it with the government. Where is TCRead more
Tax Collected at Source (TCS) and Its Applicability
What is TCS?
Tax Collected at Source (TCS) is a tax that a seller collects from the buyer at the time of sale of specified goods or services. The seller is required to collect TCS at a prescribed rate and deposit it with the government.
Where is TCS Applicable?
TCS is applicable under Section 206C of the Income Tax Act, 1961 on the sale of certain specified goods and services. Some key transactions where TCS is levied include:
Sale of Specified Goods:
Sale of Motor Vehicles:
Foreign Remittances under LRS:
Sale of Goods (Section 206C(1H)):
E-Commerce Transactions (Section 206C(1G)):
Key Points to Remember:
✅ TCS is collected by the seller and deposited with the government.
✅ The buyer can claim a credit of TCS while filing their Income Tax Return (ITR).
✅ TCS must be deposited by the seller before the 7th of the next month.
✅ Exemptions: TCS is not applicable if the buyer is a government entity, a recognized buyer, or purchases for manufacturing and resale purposes.
Read:Who is required to pay TCS?
See lessWhich order of Income Tax can be rectified?
Which Income Tax Orders Can Be Rectified? Under Section 154 of the Income Tax Act, the Income Tax Department allows rectification of mistakes in certain orders. This provision helps correct apparent errors without requiring a lengthy appeal process. 1. Orders Eligible for Rectification The followingRead more
Which Income Tax Orders Can Be Rectified?
Under Section 154 of the Income Tax Act, the Income Tax Department allows rectification of mistakes in certain orders. This provision helps correct apparent errors without requiring a lengthy appeal process.
1. Orders Eligible for Rectification
The following Income Tax orders can be rectified under Section 154:
✅ Intimation under Section 143(1) – Errors in automatic processing of returns.
✅ Assessment Orders under Section 143(3), 144, 147, 153A, 153C – Incorrect tax calculations or deductions.
✅ TDS/TCS Orders under Section 200A(1) and 206CB – Mismatch in TDS/TCS credit.
✅ Appeal Orders by CIT(A) – If there is an apparent mistake in the appellate decision.
✅ Rectification Orders under Section 154 – If a previous rectification order contained an error.
2. Types of Mistakes That Can Be Rectified
🔹 Clerical/Typographical Errors – Mistake in PAN, name, or assessment year.
🔹 Incorrect Tax Computation – Errors in tax demand or refund calculations.
🔹 TDS Mismatch – TDS credit not given as per Form 26AS.
🔹 Omission of Deductions/Exemptions – Missed deductions under 80C, 80D, 80G, etc.
🔹 Double Taxation of Income – Income considered twice for taxation.
🔹 Incorrect Late Fee or Penalty – Wrong application of fees under 234F, 271B, etc.
3. How to Apply for Rectification?
✅ Step 1: Login to the Income Tax e-Filing Portal.
✅ Step 2: Go to ‘Rectification Request’ under ‘Services’.
✅ Step 3: Select the relevant order and mention the mistake.
✅ Step 4: Upload necessary supporting documents.
✅ Step 5: Submit the request and track the status online.
4. Time Limit for Rectification
🕒 Rectification can be filed within 4 years from the date of the original order. However, this does not apply to revisions under Section 263 or 264.
Final Thoughts
If your Income Tax order contains apparent mistakes, you can request rectification under Section 154. This process is quicker than an appeal and helps correct errors without legal proceedings.
See lessRead: How to point out mistake in an income tax notice which can rectified?
When a revised return of Income Tax can be filed under Income Tax Act?
When Can a Revised Return Be Filed Under the Income Tax Act? A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the IRead more
When Can a Revised Return Be Filed Under the Income Tax Act?
A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the Income Tax Act.
📌 Conditions for Filing a Revised Return
1️⃣ Errors in the Original Return:
2️⃣ Updated Information:
3️⃣ Defective Return Correction:
4️⃣ Change in Tax Regime or Filing Status:
📅 Time Limit for Filing a Revised Return
A revised return must be filed before the earlier of:
✅ December 31 of the assessment year (for FY 2023-24, the last date is 31st December 2024).
✅ Completion of assessment by the Income Tax Department.
Example: If you filed your original return for FY 2023-24 on 30th July 2024, you can revise it until 31st December 2024, unless the tax department completes your assessment earlier.
🚀 How to File a Revised Return?
1️⃣ Log in to the Income Tax e-Filing Portal.
2️⃣ Select ‘File Income Tax Return’ and choose the correct Assessment Year.
3️⃣ Choose ‘Revised Return’ under Section 139(5).
4️⃣ Enter the acknowledgment number of the original return.
5️⃣ Make the required corrections and submit the revised return.
⚠️ Important Points to Remember
If you’ve made a mistake in your ITR, file a revised return as soon as possible to avoid any tax complications. 🚀
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