Understanding Your Income Tax Return Filing Options

Filing your Income Tax Return (ITR) on time is crucial to avoid penalties and ensure compliance with tax regulations. However, if you missed the deadline, made errors in your return, or need to declare additional income later, the Income Tax Department provides multiple options to rectify or update your filings. Here’s a detailed breakdown of the available options:

1. Belated Return: Filing After the Due Date

The original deadline for filing your ITR for the Financial Year (FY) 2024-25 is 31st July 2025. If you miss this deadline, you still have the option to file a Belated Return by 31st December 2025. However, filing a belated return comes with certain consequences:

• Late Filing Fees: Under Section 234F of the Income Tax Act, a penalty is imposed based on taxable income:
  • INR 5,000 for individuals with an income above INR 5 lakh.
  • INR 1,000 for individuals with income up to INR 5 lakh.
• Interest on Tax Dues: If you have unpaid taxes, an interest of 1% per month (under Section 234A) is applicable on the outstanding tax amount until the date of filing.
• Ineligibility for Carry Forward of Losses: Losses under the heads “Capital Gains” or “Profits & Gains from Business & Profession” cannot be carried forward if you file a belated return.

Filing a belated return is always better than not filing at all, as non-filing can lead to additional penalties, scrutiny, and even prosecution in some cases.

2. Revised Return: Correcting Mistakes in Filed ITR

If you have already filed your ITR but later realize that there are errors—such as incorrect income details, missing deductions, or misreported figures—you can rectify these mistakes by filing a Revised Return under Section 139(5).

• The last date to file a revised return for FY 2024-25 is 31st December 2025.
• There is no limit to how many times you can revise your return, as long as the revised return is filed within the deadline.
• The revision process can be done online through the Income Tax e-Filing portal.
• Common mistakes that necessitate a revised return include:
  • Incorrect bank account details.
  • Omission of income sources.
  • Claiming incorrect deductions.
  • Errors in tax computation.

Filing a revised return ensures accurate reporting and can help prevent penalties or scrutiny by tax authorities in case of discrepancies.

3. Updated Return: Rectifying Non-Disclosure of Income

From April 2022, the government introduced the concept of an Updated Return (ITR-U) under Section 139(8A), allowing taxpayers to voluntarily update their tax filings for missed or additional income declarations. This option provides a safety net for those who may have:

• Forgotten to declare certain income.
• Underreported taxable earnings.
• Realized the need for additional disclosures after filing their return.

Key Conditions for Filing an Updated Return:

• The Updated Return for FY 2024-25 can be filed until 31st March 2028 (within 24 months from the end of the relevant assessment year).
• Restrictions on filing an Updated Return:
  • You cannot file an updated return to declare a loss or carry forward losses.
  • You cannot use an updated return to reduce tax liability.
  • You cannot claim a higher refund than originally declared.
• Additional Tax Liability: Filing an updated return requires payment of additional tax:
  • 25% of the additional tax liability if filed within 12 months from the end of the relevant assessment year.
  • 50% of the additional tax liability if filed after 12 months but before 24 months.

This option provides a way for taxpayers to proactively correct their tax filings and avoid potential notices or penalties in the future.

Which Option Should You Choose?

The choice of whether to file a belated, revised, or updated return depends on your specific situation:

Scenario	Recommended Action
Missed the original ITR deadline	File a Belated Return before 31st December 2025
Found mistakes in an already filed return	File a Revised Return before 31st December 2025
Need to disclose additional income after the deadline	File an Updated Return (ITR-U) by 31st March 2028

Conclusion

Filing income tax returns on time is always the best course of action, but if you missed the deadline or need to make corrections, the Income Tax Department provides options to rectify and update your filings. Whether you opt for a belated return, revised return, or updated return, understanding the implications of each can help you make an informed decision and stay compliant with tax laws.

As tax laws and deadlines may be subject to change, it’s always advisable to consult a tax professional or refer to the official Income Tax Department portal for the latest updates.