ITR 2021-22: How does a belated income tax return differ from regular one?

Filing your income tax return on time is always the best option. We explain what happens when you file it late

The last date to file the income tax return (ITR) has been fixed at July 31, 2022, by the income tax department (I-T department). It is mandatory to file the ITR for people with an annual income greater than Rs 2.5 lakh. However, sometimes a taxpayer might miss the July 31 deadline.

In that case, they can file a belated ITR up to December 31, 2022. A belated ITR is filed after the due date, while a regular ITR is filed before the due date.

The belated ITR also attracts a penalty. If the annual income is less than Rs 5 lakh per annum, Rs 1,000 must be paid along with the belated ITR. If the income exceeds Rs 5 lakh per annum, the fine amount is Rs 5,000.

Also Read | ITR 2021-22: Penalties you may have to pay if you miss July 31 deadline

Along with the penalty, there are other charges too that will be applicable if you are filing the belated ITR:

Interest on unpaid tax

If there is an unpaid income tax after July 31, 2022, an interest of 1 per cent is applicable on the outstanding amount. This is irrespective of whether the tax amount was filed wrong by mistake or not.

The taxpayer will have to deposit the outstanding tax along with interest retrospectively from July 31.

Also, if the outstanding tax is paid on or after the 5th of any month, the full month's interest will have to be paid.

Carry forward the losses

Taxpayers can reduce their liability by offsetting the losses from business operations or selling property against other incomes. The losses are allowed to be carried to subsequent years.

However, it is not applicable in the case of a belated ITR. The losses can only be carried forward if the ITR is filed before July 31, 2022.

Transactions mandatory to be mentioned in the ITR

Here are some transactions that are mandatorily required to be mentioned in the ITR:

1. House renovation: If you have renovated your house in the last financial year (2020-21), the details about it must be mentioned in the 'capital gains' column in the ITR.
2. Sale/ purchase of property: If you have sold property between April 1, 2021, and March 31, 2022, its details must also be mentioned in the 'Capital gains' column.
3. Property in a foreign country: If you own a house in any foreign land, its details are also necessary to be mentioned in the ITR. Additionally, the I-T department may also ask you for details about your income abroad.
4. Provident fund (PF account): If you earn an interest higher than Rs 2.5 lakh per annum on the PF account, it needs to be mentioned in the ITR.
5. The actual cost of property: Until now, the index cost of the property purchased/ sold was required to be furnished in the ITR. In FY22, the taxpayers need to mention the actual cost of the property.