The last date for filing income tax return was 31st July which has now ended. If you have not filed income tax return till 31st July and are now thinking of filing belated ITR, then this news can prove to be useful for you.
Actually, while you get extra time to file belated ITR, it also has some disadvantages. Although you can file Belated ITR till 31st December. But for this you have to pay penalty in the form of late fee. Apart from this, there are many types of losses, about which many people are not aware. Let’s know…
Disadvantages of filing belated ITR
- If you file a belated ITR, you are not allowed to carry forward the loss to the next year. Whereas in normal circumstances, you can carry forward the loss for 8 years.
- The department does not pay interest to those who file belated ITR. Please note that on timely filing of ITR, the taxpayer gets interest at the rate of 0.5% per month on the amount till the date of refund.
- If any tax is due at the time of filing belated ITR, then one has to pay penal interest. This is levied at the rate of 1% per month. Penal interest is levied under sections 234A, 234B and 234C depending on the type of tax due.
- If your tax refund is due after filing a belated return, it will be received late. Due to delay in ITR filing, processing will be delayed and refund will be delayed.
- In belated ITR, you do not get the option to choose the old tax regime. In such a situation, you have to file the return under the new tax regime even if you do not want to. Let us tell you that taxpayers who want to save tax by taking advantage of deductions, choose the old tax regime. But with the deadline, this option also goes out of their hands.
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