Can You Claim Refund in a Belated ITR? Complete Guide
- PRITI SIRDESHMUKH
- 1 day ago
- 10 min read
A belated Income Tax Return (ITR) allows taxpayers to file after the due date under Section 139(4) of the Income Tax Act, 1961. Many individuals wonder whether a tax refund can still be claimed in such cases. The answer is yes — refunds can be claimed if the return is filed within the permitted timeline, typically by 31st December of the assessment year. However, filing a belated return also brings certain implications, including late fees, interest, and restrictions on carrying forward losses. Understanding these rules helps ensure accurate compliance and prevents refund-related delays.
Table of Contents
Understanding Belated ITR under Section 139(4)
A belated Income Tax Return (ITR) is filed when a taxpayer misses the original due date under Section 139(1) of the Income Tax Act, 1961. Section 139(4) allows filing such delayed returns for an assessment year until 31st December, provided the delay is not due to any fraudulent intent. This provision ensures that taxpayers who could not file on time because of oversight, financial reasons, or technical issues still get an opportunity to comply. While the return is accepted, it comes with certain conditions, such as late filing fees, interest on tax dues, and restrictions on carrying forward specific losses. However, taxpayers are still eligible to claim a refund if the return is filed within the permitted time frame.
Refund Eligibility in Belated ITR Filing
Refunds in a belated ITR can be claimed if the taxes paid through advance tax, TDS, or self-assessment exceed the final tax liability. The Income Tax Department processes refunds for such cases provided the return is filed and e-verified before 31st December of the assessment year. If the return is filed after this date, it falls under the “Updated Return” category (ITR-U), where refunds are not permitted. It is important to ensure that all income, deductions, and TDS details are accurately reported to prevent discrepancies. The refund amount is directly transferred to the taxpayer’s pre-validated bank account once the ITR is processed successfully.
Last Date to File Belated ITR and Claim Refund for FY 2024-25
For the financial year 2024–25 (assessment year 2025–26), the last date to file a belated ITR and claim a refund is 31st December 2025. Any return filed beyond this deadline will not be treated as a belated return but as an Updated Return under Section 139(8A), which does not allow refund claims. Filing before this date ensures that the taxpayer remains eligible for refunds and minimizes the chances of penalty accumulation. To avoid last-minute issues such as portal slowdowns or verification errors, it is advisable to complete the filing well before the deadline.
Interest on Refund for Belated Returns
When a refund arises from a belated ITR, interest under Section 244A is calculated differently compared to timely returns. For regular returns filed within the due date, interest on the refund amount is computed from 1st April of the assessment year. However, for belated returns, interest accrues from the actual date of filing until the date the refund is issued. This often results in lower interest payouts for belated filers. The interest is calculated at 0.5% per month on the refundable amount, but only if the delay is not attributable to the taxpayer’s error. If a delay in issuing the refund occurs due to administrative reasons by the department, the taxpayer remains entitled to interest.
Late Fees and Penalties Applicable on Belated ITR
Filing a belated ITR attracts a late filing fee under Section 234F of the Income Tax Act. Taxpayers with total income up to ₹5 lakh are liable to pay ₹1,000 as a late fee, while those with income above ₹5 lakh must pay ₹5,000. Additionally, interest under Sections 234A, 234B, and 234C is charged for delay in filing, non-payment, or underpayment of advance tax. These charges accumulate monthly and can significantly increase the total tax payable if the filing is delayed for long periods. Therefore, early compliance not only helps in preserving refund eligibility but also reduces additional financial burden.
How to Claim Refund in a Belated ITR
To claim a refund in a belated return, the taxpayer must log in to the Income Tax e-filing portal and select the relevant assessment year under Section 139(4). After entering income details, deductions, and TDS information, the system automatically calculates the tax payable or refundable. The refund is credited directly to the pre-validated bank account once the return is processed and verified. It is crucial to e-verify the return within 30 days of filing using Aadhaar OTP, net banking, or digital signature. TaxBuddy provides guided steps for filing and helps ensure accurate data entry, eliminating common mistakes that lead to refund delays.
Importance of Pre-validating Bank Account for Refund
The Income Tax Department mandates that refunds be credited only to pre-validated bank accounts linked with the taxpayer’s PAN. Pre-validation ensures the account belongs to the taxpayer and prevents failed refund transfers. The process can be completed easily through the e-filing portal by entering bank details and verifying them via net banking or electronic confirmation. If an unvalidated or closed account is mentioned, the refund fails, and a reissue request has to be made later. Using platforms like TaxBuddy simplifies this step by verifying bank linkage automatically during filing, ensuring faster and more secure refund disbursement.
Revision of Belated ITR and Its Impact on Refund
A belated return can be revised under Section 139(5), provided it is done within the same timeline — that is, on or before 31st December of the assessment year. Revising a belated ITR helps correct errors or omissions that might otherwise affect refund calculation or processing. Once revised, the earlier version becomes void, and only the latest return is considered for assessment. However, if the revision is delayed beyond the deadline, no further correction is permitted. Timely revision ensures that refund eligibility remains intact and that accurate information is available for faster processing.
When Refund Cannot Be Claimed: ITR-U Explained
If a taxpayer misses the 31st December deadline, the return can still be filed as an Updated Return under Section 139(8A). However, refunds are not allowed under this provision. The ITR-U is mainly meant for taxpayers who want to declare additional income or rectify underreported income in earlier returns. It involves payment of additional taxes and interest, often referred to as the “update tax,” and offers no scope for claiming refunds. This distinction highlights the importance of filing a belated return before the 31st December deadline to safeguard refund eligibility.
Common Errors that Delay Belated Refund Processing
Several errors can delay refund processing for belated ITRs. These include incorrect bank account details, mismatch in TDS entries, unverified returns, or discrepancies between Form 26AS and the filed ITR. Sometimes, taxpayers forget to e-verify the return within 30 days, which suspends refund issuance until verification is completed. Another common issue arises from incorrect reporting of exempt income or deductions. Using a professional filing service like TaxBuddy can help eliminate these mistakes, ensuring a smooth and timely refund credit.
How TaxBuddy Simplifies Belated ITR Filing and Refund Claims
TaxBuddy simplifies the process of filing belated returns through an AI-driven, user-friendly platform. It assists taxpayers in calculating accurate tax liabilities, ensuring TDS reconciliation, and validating bank accounts automatically. The platform also alerts users about the approaching 31st December deadline to prevent missed refund opportunities. With expert-assisted and self-filing options, TaxBuddy ensures compliance with all relevant sections of the Income Tax Act while minimising late fees and penalties. Its intelligent dashboard helps track refund status and offers post-filing support for queries or reissue requests, making the entire experience hassle-free.
Conclusion
Filing a belated ITR under Section 139(4) still allows taxpayers to claim refunds if completed before 31st December of the assessment year. However, delayed filing invites late fees, reduced refund interest, and loss of certain tax benefits. Ensuring accurate filing, bank account validation, and e-verification are key to smooth refund processing. Reliable tax platforms like TaxBuddy offer structured support, automated checks, and expert guidance to make filing and refund tracking simpler. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted plans to suit different taxpayer needs. The self-filing plan is ideal for individuals comfortable with online tax filing, providing step-by-step guidance through the platform’s AI interface. The expert-assisted plan is designed for those who prefer personalized support, where a professional tax expert handles the entire filing process — from data review to submission and refund tracking. Both options ensure accuracy, timely filing, and compliance with the latest Income Tax rules, making it easier for users to choose the level of assistance they need.
Q2. Which is the best site to file ITR?
TaxBuddy is widely regarded as one of the best platforms in India for income tax return filing due to its AI-driven automation and expert-backed accuracy. It simplifies every step of the process — from uploading Form 16 to calculating deductions and verifying refund eligibility. Unlike conventional portals, TaxBuddy combines the ease of self-filing with the reliability of expert review, ensuring no errors or missed deductions. The platform also provides secure data handling and post-filing support, making it a comprehensive solution for individuals, professionals, and businesses alike.
Q3. Where to file an income tax return?
Taxpayers can file their income tax returns online through the official Income Tax e-filing portal (www.incometax.gov.in) or through trusted platforms like TaxBuddy. While the government portal provides the basic filing interface, TaxBuddy enhances the process with guided assistance, automatic data extraction from Form 16, and AI-based validation checks to minimize errors. The entire process — from filing to e-verification — can be completed online within minutes, ensuring compliance with all deadlines and refund eligibility requirements.
Q4. What is the last date to file a belated ITR for FY 2024-25?
The last date to file a belated Income Tax Return for the financial year 2024–25 (assessment year 2025–26) is 31st December 2025. This extended timeline under Section 139(4) allows taxpayers who missed the original due date to file their returns with applicable late fees. Filing after 31st December is no longer considered a belated return but an Updated Return (ITR-U), for which refunds are not permitted. Therefore, filing before this deadline is essential to secure refund eligibility and avoid penalties.
Q5. Can refund be claimed if I file a belated ITR?
Yes, taxpayers can claim refunds in a belated ITR provided it is filed and e-verified before 31st December of the assessment year. Refund eligibility arises when the taxes paid through advance tax, self-assessment, or TDS exceed the final tax liability. However, filing after 31st December converts the return into an ITR-U, which does not allow refunds. Hence, timely submission and verification are key to ensuring that excess tax paid is credited back to the taxpayer’s pre-validated bank account.
Q6. Will I receive interest on refund for a belated ITR?
Yes, interest on a tax refund is payable even for belated returns, but it is calculated differently from regular returns. Under Section 244A, interest is computed from the actual date of filing a belated ITR to the date when the refund is issued, unlike on-time filings where interest starts from 1st April of the assessment year. This results in lower interest amounts for belated filers. To maximize refund benefits, it is advisable to file returns early and ensure all tax credits are correctly reflected in Form 26AS and AIS.
Q7. Can a belated ITR be revised?
A belated ITR can be revised under Section 139(5) of the Income Tax Act, but only until 31st December of the assessment year. Revising the ITR helps correct errors such as omitted income, wrong deductions, or incorrect TDS claims that could otherwise affect refund calculations. Once a revised return is filed, the earlier one becomes invalid. However, missing this deadline restricts further changes, and any error after that point can only be corrected through an Updated Return, which does not allow refunds.
Q8. What happens if I miss the 31st December deadline?
If the belated ITR is not filed by 31st December, the taxpayer can still submit an Updated Return (ITR-U) within two years from the end of the relevant assessment year. However, refunds cannot be claimed through ITR-U. Instead, the updated return is used to disclose omitted income, rectify underreporting, or correct earlier mistakes, often resulting in additional tax payments. Filing an ITR-U also attracts an additional tax liability of 25% to 50% of the due tax, depending on the delay period.
Q9. Is e-verification mandatory to receive a refund?
Yes, e-verification of the ITR is mandatory for processing refunds. Without completing this step, the return remains unverified and is treated as invalid by the Income Tax Department. Taxpayers can e-verify using Aadhaar OTP, net banking, bank account-based validation, or by sending a signed ITR-V form to the Centralized Processing Centre (CPC) in Bengaluru. Refund processing begins only after successful verification. Platforms like TaxBuddy simplify this process by sending automatic e-verification reminders and guiding users through secure verification options.
Q10. Why is pre-validating the bank account important for refunds?
Refunds are credited only to pre-validated bank accounts linked with the taxpayer’s PAN. Pre-validation ensures that the account is active, belongs to the taxpayer, and can securely receive funds. This process can be completed through the income tax portal by entering bank details and validating them via net banking or electronic confirmation. Refund failures often occur when the bank account is unvalidated, inactive, or closed. TaxBuddy ensures that pre-validation is checked during filing, preventing refund delays and failed credit attempts.
Q11. What penalties apply to belated returns under Section 234F?
Section 234F prescribes a penalty for filing returns after the original due date. If the total income is up to ₹5 lakh, a late filing fee of ₹1,000 is applicable. For taxpayers earning above ₹5 lakh, the penalty increases to ₹5,000. In addition to this, interest may also be charged under Sections 234A, 234B, and 234C for delays in tax payment or shortfall in advance tax. Filing early not only avoids these penalties but also ensures faster processing and timely refund credit.
Q12. How can TaxBuddy help in faster refund processing?
TaxBuddy ensures faster refund processing by combining automation and expert guidance throughout the filing journey. The platform automatically imports Form 16 data, reconciles TDS with Form 26AS, and validates all entries before submission. It also ensures that the bank account is pre-validated and the return is e-verified within the deadline. Additionally, users can track refund status through the TaxBuddy dashboard and receive updates on processing progress. With post-filing support for refund reissues and notices, TaxBuddy minimizes delays and helps taxpayers receive their refunds seamlessly.
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