How to File Belated ITR for Business or Professional Income
- Nimisha Panda
- Dec 4
- 9 min read
Filing an income tax return (ITR) after the due date is known as a belated return. For business owners and professionals, missing the original deadline can lead to penalties, interest, and restricted benefits. However, the Income Tax Act allows taxpayers to file a belated ITR under Section 139(4). Understanding how and when to file ensures compliance while minimizing losses. This guide explains the complete process, from eligibility and documentation to filing on time through reliable platforms like TaxBuddy.
Table of Contents
What Is a Belated Income Tax Return?
A belated income tax return (ITR) is a return filed after the original due date prescribed under Section 139(1) of the Income Tax Act. It allows taxpayers who missed the initial deadline to still file their income details, pay taxes, and comply with legal requirements. Such returns can be filed under Section 139(4) before the end of the assessment year or before the completion of an assessment, whichever is earlier. While filing late ensures compliance, it also attracts interest and penalties, and certain benefits—like carrying forward losses—may not be available.
Who Can File a Belated ITR for Business or Professional Income?
Any individual, business owner, professional, or Hindu Undivided Family (HUF) who missed the original ITR deadline can file a belated return. This includes taxpayers with income from business, freelancing, consultancy, or professional services. Firms, LLPs, and companies can also file belated returns. However, it’s crucial that all taxes are paid before submission, as filing without clearing outstanding dues can make the return invalid. Filing late helps maintain compliance and prevents future legal complications under Section 234F or 271F.
Filing Timeline and Last Date for Belated ITR in FY 2024–25
For the financial year 2024–25 (assessment year 2025–26), the last date to file a belated ITR is December 31, 2025, unless extended by the Central Board of Direct Taxes (CBDT). The original deadline for most individuals is July 31, 2025. Missing that date means taxpayers must file under Section 139(4) by the December deadline. Filing after this period is not permitted unless done under Section 139(8A) as an updated return, which is applicable for corrections or omissions made within two years from the end of the assessment year.
Documents and Information Required Before Filing
Before filing a belated ITR, taxpayers should collect:
Form 16 or income details from the employer
Form 26AS, AIS, and TIS to verify TDS and income records
Details of business receipts, expenses, and profit and loss accounts
Bank statements and interest certificates
Investment proofs for eligible deductions (Sections 80C, 80D, etc.)
Tax payment challans, if any advance or self-assessment tax was paid Having complete documents ensures that the belated return is accurate and prevents mismatches in AIS or subsequent notices from the tax department.
Step-by-Step Process to File Belated ITR Online
Log in to the Income Tax e-filing portal.
Select “File Income Tax Return” and choose the relevant assessment year (AY 2025–26).
Select the filing type as “Belated Return under Section 139(4)”.
Choose the applicable ITR form—ITR-3 or ITR-4 for business/professional income.
Fill in income details, business turnover, deductions, and taxes paid.
Validate data and review total tax liability.
Submit the return and e-verify using Aadhaar OTP, bank account, or DSC. Once verified, you’ll receive an acknowledgment (ITR-V) confirming successful filing.
How to File Belated ITR for Business or Professional Income through TaxBuddy
TaxBuddy simplifies the belated ITR filing process for business owners and professionals. By uploading Form 16, financial statements, and bank details, the platform automatically classifies income sources, applies deductions, and calculates taxes accurately. Expert-assisted plans also ensure accurate reporting of business turnover, depreciation, and deductions under sections like 44ADA, 44AB, or 44AE. This prevents errors that could lead to notices. With AI-driven validation, TaxBuddy guarantees an error-free and compliant return filing experience.
Penalties and Interest Applicable on Late Filing
Late filing attracts penalties and interest under Sections 234A, 234B, and 234C. A late fee of ₹5,000 is levied under Section 234F if the return is filed after the due date but before December 31. For taxpayers with income below ₹5 lakh, the penalty is limited to ₹1,000. Interest at 1% per month is charged on the outstanding tax amount for the delay period. Additionally, late filers lose certain benefits like carrying forward business losses or unabsorbed depreciation to future years.
Consequences of Not Filing Before the Belated ITR Deadline
If a taxpayer fails to file even a belated return before December 31, they can no longer file a regular ITR for that financial year. This may lead to penalties, prosecution, or higher scrutiny from the tax department. Moreover, refund claims cannot be processed, and losses from business or capital gains cannot be carried forward. The only option after the deadline is filing an updated return under Section 139(8A), which can involve additional tax liability and higher interest costs.
Can a Belated Return Be Revised or Updated Later?
Yes, a belated return can be revised under Section 139(5) if the taxpayer discovers an error or omission. The revised return must be filed before December 31, 2025, or the completion of the assessment, whichever is earlier. If missed, the taxpayer can still file an updated return under Section 139(8A) within two years from the end of the assessment year by paying additional tax. However, timely revision avoids higher interest and scrutiny, ensuring accuracy and compliance.
How to Claim Refunds or Adjust Losses in a Belated ITR
Refunds can still be claimed in a belated return if excess tax has been deducted or paid. However, the refund may be delayed as belated filings undergo additional verification. Business or capital losses, except losses from house property, cannot be carried forward if the ITR is filed after the due date. Therefore, timely filing is critical to preserving such benefits. TaxBuddy’s expert review ensures all eligible refunds are accurately claimed, and carry-forward losses are not missed.
Common Mistakes to Avoid While Filing a Belated ITR
Filing a belated ITR requires careful attention to detail, as even a small mistake can lead to processing delays, defective return notices, or the rejection of deductions and credits. One of the most common mistakes is failing to select the correct ITR form, especially when reporting income from business or profession. Using an incorrect form can invalidate the filing or lead to additional scrutiny from the Income Tax Department. It is crucial to verify the nature of income and choose the right form accordingly, such as ITR-3 or ITR-4 for business or professional income.
Another frequent error is forgetting to select the correct filing type—specifically “Section 139(4): Belated Return.” If this option is not chosen, the system may treat the return as a regular or revised ITR, which could cause discrepancies in processing. Selecting the correct section ensures that the ITR is classified properly and prevents compliance issues later.
Taxpayers also tend to overlook or misreport TDS/TCS details, which often leads to mismatches between Form 26AS, AIS (Annual Information Statement), and the income declared in the return. Such inconsistencies can result in tax notices or withheld refunds. It’s important to review all entries in AIS and TIS (Taxpayer Information Summary) before filing to ensure that income, deductions, and tax credits are consistent across documents.
Another key issue is failing to pay self-assessment tax before filing the return. If any tax remains unpaid at the time of submission, the return may be considered defective or invalid under Section 139(9). The taxpayer should calculate total tax liability, deduct TDS and advance tax already paid, and pay any remaining balance through challan before filing the belated ITR.
Finally, many taxpayers forget to complete the e-verification process within 30 days of submitting the return. Without verification, the return is treated as unfiled, and the taxpayer loses the legal validity of the submission. Verification can be done easily through Aadhaar OTP, net banking, or electronic verification codes.
Avoiding these common mistakes helps ensure that the belated ITR remains valid, compliant, and processed smoothly. Filing through reliable tax platforms like TaxBuddy further simplifies this process, as the system automatically checks for errors, matches data with AIS, and guides the user through accurate return submission.
Conclusion
Filing a belated income tax return offers a chance to stay compliant even after missing the original deadline. However, it’s essential to understand the conditions, deadlines, and penalties involved. TaxBuddy simplifies late filing for individuals, professionals, and businesses through guided, AI-powered systems that ensure accuracy and compliance with the Income Tax Act.
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. What is the due date for filing a belated return for FY 2024–25?
A belated return can be filed after the original due date (July 31, 2025, for most taxpayers) but before December 31, 2025, for FY 2024–25 (AY 2025–26). This extended window allows taxpayers who missed the initial deadline to comply and avoid more serious penalties. However, filing early is still recommended to ensure timely processing of refunds and accurate reporting of income and deductions.
Q2. Can a belated return be revised later?
Yes, a belated return filed under Section 139(4) can still be revised under Section 139(5) if any errors or omissions are discovered later. However, the revision must be completed before December 31, 2025, or before the completion of assessment, whichever is earlier. This flexibility helps taxpayers correct mistakes and ensure their return accurately reflects their income and deductions.
Q3. What happens if I miss the belated return deadline?
If the belated return is not filed by December 31, 2025, taxpayers lose the right to file their return for that financial year. This can lead to penalties, interest charges under Sections 234A, 234B, and 234C, and even the loss of carry-forward benefits for business and capital losses. In serious cases, the Income Tax Department may issue a notice or initiate scrutiny for non-compliance.
Q4. Is a penalty applicable for filing a belated return?
Yes, as per Section 234F, a penalty of up to ₹5,000 is levied for filing a belated return after the due date. If the total income is below ₹5 lakh, the penalty is restricted to ₹1,000. Additionally, interest under Sections 234A, 234B, and 234C may also apply for delayed payment of taxes. These charges accumulate until the return is filed and taxes are paid.
Q5. Can losses be carried forward if I file after the due date?
No, most losses—such as business loss, capital loss, or loss from house property (beyond ₹2 lakh)—cannot be carried forward if the ITR is filed after the due date. Only unabsorbed depreciation and loss under the head “income from house property” up to ₹2 lakh can still be carried forward. Filing within the deadline ensures that taxpayers retain all eligible benefits for future years.
Q6. Can refunds be claimed in a belated return?
Yes, taxpayers can still claim refunds through a belated return, provided all income and TDS details are accurately reported. However, delayed filing may result in slower refund processing and loss of interest under Section 244A for the late period. To receive the refund promptly, ensure that bank details and pre-validation are complete on the income tax portal.
Q7. How to know if my belated ITR is successfully filed?
After filing the belated return, check the acknowledgment (ITR-V) generated on the income tax portal. A confirmation email and SMS are sent once the return is successfully submitted and verified. The status can also be tracked under “View Filed Returns” on the portal dashboard. Verification—through Aadhaar OTP, EVC, or physical submission—is mandatory for processing to begin.
Q8. What documents are required for filing a belated return?
Essential documents include Form 16 (for salaried individuals), Form 26AS, AIS/TIS (Annual Information Statement), interest certificates, proof of deductions (like Section 80C, 80D, etc.), and capital gain statements if applicable. Keeping these handy ensures accurate reporting and avoids discrepancies that might trigger notices later.
Q9. Is e-verification mandatory for belated returns?
Yes, e-verification is mandatory for all ITRs, including belated ones. The return must be verified within 30 days of filing, either electronically through Aadhaar OTP, bank EVC, net banking, or by sending a signed physical copy of ITR-V to CPC Bengaluru. Without verification, the return is considered invalid, and no processing or refund will occur.
Q10. Can I file a belated return for previous financial years?
Generally, a belated return can only be filed for the immediately preceding financial year. However, if you have missed multiple years, you may file an updated return under Section 139(8A) within two years from the end of the relevant assessment year, subject to additional tax. This provision helps taxpayers rectify earlier non-compliance.
Q11. How can business owners file belated ITRs through TaxBuddy?
Business owners can easily file belated returns on the TaxBuddy platform by uploading their financial statements, Form 26AS, and bank data. TaxBuddy’s system automatically detects applicable business deductions, depreciation, and tax liabilities. Its expert-assisted plans ensure proper reporting of income, GST linkage, and accurate tax computation even for complex filings.
Q12. Is it possible to avoid penalties on delayed filing?
Penalties under Section 234F are generally unavoidable once the due date has passed. However, timely payment of taxes and filing the return before December 31 can help minimize interest and late fees. TaxBuddy’s automated alerts and AI-based deadline tracking ensure taxpayers never miss important due dates, thereby preventing unnecessary penalties in the future.
