Section 139(4) of the Income Tax Act: Belated Return Explained

Missing your income tax filing deadline can feel stressful, but it happens more often than you might think. People change jobs, documents arrive late, or tax filing simply slips the mind. That’s exactly where Section 139(4) of the Income Tax Act comes in, offering a legal way to fix the mistake instead of panicking about it.

Section 139(4) of the Income Tax Act provides taxpayers with the option to submit a belated return of income tax if they miss the original due date to file their returns. The intention behind providing this option is to help individuals who experience genuine reasons for a late filing. Many salaried individuals, small business owners and other taxpayers use this option after they discover they did not file a return.

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Under Section 139(4), you can continue to file your return as long as you are within the timeframe set by the provisions for belated returns. The last date for return filing under Section 139(4) is 31st December of the assessment year. If you do not file by this date, you will no longer have the option to file a belated return.

However, there are a few costs associated with filing an income tax return late, such as the possibility of late filing fees depending on how far past the deadline you've filed your taxes, as well as whether or not you owe any tax money after filing your taxes. Also, it is possible that you will incur additional interest for late taxes owed. While this isn't ideal, filing a return late is better than not filing one at all. If you choose neither option, you could eventually receive notice regarding your failure to file a return, which could lead to issues later on.

Another important detail many people overlook is losses. When you file a belated return income tax under Section 139(4), you may not be allowed to carry forward certain losses, especially business or capital losses. This is why tax professionals always suggest filing on time whenever possible.

Missed the deadline this time? Plan better for the next year—invest in ELSS funds to save tax and build long-term wealth before the filing season arrives.