Filing belated ITR, balancing investment risk: Top personal finance stories

This week we write about how you can file tax returns after deadline and why investors must temper their market expectations

Taxpayers who missed the July 31 deadline can still file a belated income tax return (ITR). To know more about belated ITR, its advantages and disadvantages, and the precautions to observe while filing it, read the lead story by Bindisha Sarang.

The second article, by Deepesh Raghaw, discusses the importance of managing expectations. It talks about how, as an investment advisor, he has to work on getting his clients to have the right expectations. According to him, new investors, attracted by rising markets, underestimate risks and mistakenly believe that investing in stocks or equity funds guarantees high returns.

Investors who want regular income post-retirement should consider investing their corpus in annuities. Those who have retired should go for immediate annuities while those who are five or 10 years away should opt for deferred annuities. Look up Policybazaar.com's table to explore the options available.

In the current bull run, mid and smallcap funds have outpaced their largecap peers. Most investor portfolios have got skewed towards mid and smallcap segments. If you wish to restore the balance in your portfolio and are looking for a largecap fund, check out Morningstar's review of SBI Bluechip Fund.

NUMBER OF THE WEEK

70 million Income Tax returns filed by July 31

About 70 million Income Tax returns (ITR) had been filed for FY24 by July 31, an increase over the 68 million filings till that date in the previous year. July 31 was the last date for ITR filing. Even though the system slowed down, 500, 000 ITRs were filed by 7 pm on the last date.

The high numbers make it unlikely that the Central Board of Direct Taxes will extend the deadline for filing returns, something many taxpayers were hoping for. For those missing the deadline, they can still file a belated ITR by paying a penalty. The deadline to file a belated return for FY24 (Assessment Year 2024-25) is December 31, 2024.

Filing a belated ITR requires payment of a late fee of Rs 5,000 if the taxpayer's total income is above Rs 5 lakh, or Rs 1,000 if the total income is below Rs 5 lakh.

Filing a belated ITR requires payment of a late fee of Rs 5,000 if the taxpayer's total income is above Rs 5 lakh, or Rs 1,000 if the total income is below Rs 5 lakh.