Can I file my ITR for FY 2020-21 after 31stDecember 2021? What is a belated return? What is the penalty for late filing of return?Till when can I file the belated return?

1. The due date specified u/s 139(1) of the Income Tax Act, 1961 for filing the Income Tax
returns is the date by which the returns can be filed without having to pay any late fee. Not
filing the ITR on time can lead to the imposition of a penalty and other consequences and
inconveniences discussed in detail below.
The due date for filing the Income Tax returns for Individual/HUF/AOP/BOI for the financial
year 2020-21 was initially extended from 31stJuly 2021 to 30thSeptember 2021 due to the
second wave of Covid-19 in the country. It was then extended to 31stDecember 2021
following complaints about technical glitches in the new Income Tax portal to file the
returns.
What if you missed filing the return within the due date?
If you missed the due date for filing your return of income for FY 2020-21, you can still file
your ITR as a ‘belated return’. The Income Tax department specifies the due date of filing
the belated return, which is 31stDecember (unless extended by the government) following
the financial year for which return filing has been missed.
However, CBDT has extended the last date for filing the revised or belated return for
financial year 2020-21 from 31stDecember 2021 to 31stMarch 2022.
Late Fee for default in furnishing return of income u/s 234F
According to section 234F of the Income Tax Act, filing the ITR post the deadline can make
the assessee liable to pay a maximum penalty of Rs.5,000.

2. Hence, for financial year 2020-21, if the assessee files his ITR after 31stDecember 2021, the
penalty of Rs.5,000 would be levied. However, as a relief to the small taxpayers, the Income
Tax department has provided that if an assessee’s total income is not more than Rs.5 lakh in
the relevant financial year, then the maximum penalty levied for the delay will be only
Rs.1,000.
Hence, late fee for FY 2020-21 will be levied as follows -
Return Filing Date
Total Income Below
Rs.5,00,000
Total Income Above
Rs.5,00,000
On or before 31st December
2021
Nil Nil
After 31st December 2021 Rs.1,000 Rs.5,000
Interest for default in furnishing return of income u/s 234A
As per section 234A, interest is attracted for failure to file the return of income within the
applicable due date mentioned under section 139(1).
In such case, simple interest @1% per month or part of the month is payable by the
assessee for the period commencing from the date immediately following the due date of
filing the return and ending on the date of furnishing of the return.As mentioned earlier
also, for the financial year 2020-21, the due date for furnishing the return was 31stDecember
2021.
The interest has to be computed on the tax amount remaining unpaid, i.e., the amount of
tax payable on net total income as reduced by the advance tax paid and any tax deducted or
collected at source.
No interest under this section shall be charged on self-assessment tax paid by the assessee
on or before the due date of return filing.
For example:
If Mr. Verma files his return of income for FY 2020-21 on 18thFebruary 2022 and if his unpaid
tax amount is Rs.85,000, then the interest amount payable by him on 18thFebruary 2022
while paying his tax liability will be calculated as follows -
Interest amount = Rs.85,000*1%*2 (January and February) = Rs.1,700
Note: The extension of the due date for filing the ITR for FY 2020-2021, as mentioned above,
was not applicable for calculation of interest under this section for the assessees whose net
tax liability payable exceeds Rs.1,00,000 for this year. In the case of such assessees, the
interest under this section would be calculated from the date immediately following the
original due date of filing the return, i.e., 31st July 2021, and not from the extended due
date, i.e., 31st December 2021.
For example:

3. If Mr. Mehta files his return of income for FY 2020-21 on 20thFebruary 2022 and if his unpaid
tax amount is Rs.1,20,000, then the interest amount payable by him on 20thFebruary 2022
while paying his tax liability will be calculated as follows -
Interest amount = Rs.1,20,000*1%*8 (August, 2021 to February, 2022) = Rs.9,600
Interest for non-payment or short payment of advance tax u/s 234B
As per section 234B, interest is levied for default in payment of advance tax. Such interest is
charged if the advance tax paid by the assessee is less than 90% of the assessed tax.
Advance tax is payable by the assessee during the financial year if the estimated tax liability
of the assessee during that year exceeds Rs.10,000.
Under this section,the taxpayer is liable to pay simple interest at 1% per month or part of a
month on the amount of unpaid advance tax.If there is a short payment of advance tax,
then interest is levied on the amount by which advance tax is short paid.
The interest as per this section is levied from the first day of the assessment year till the
date of actual payment of the tax.
Hence, for FY 2020-21, the interest for non-payment or short payment of the advance tax
would be calculated from 1stApril 2021 till the date when the tax is actually paid. Therefore,
if you have made default in the payment of the advance tax and have not filed the return
yet, you must file it and pay the tax at the earliest to avoid paying interest for every
additional month.
Interest for default in payment of instalment(s) of advance tax u/s 234C
As per section 234C, the taxpayer is liable to pay simple interest @1% per month or part of a
month for short payment or non-payment of individual instalment(s) of advance tax.
Interest under this section is levied for a period of three months, in case of short payment or
non-payment of 1st, 2ndand 3rdinstalment and for one month, in case of short payment or
non-payment of the last instalment.Such interest is levied on the short-paid amount of
instalment(s) of advance tax.
Hence, you must note that if you missed paying your advance tax instalment(s), if any, in
time or short paid such instalment(s), you will have to pay the interest under this section
also with the payment of self-assessment tax at the time of filing your return of income.
Carry Forward of Certain Losses Not Permitted
Another consequence of not filing the return on time or filing a belated return is that the
assessee would not be allowed to carry forward the following losses, if any, for set off
against income in future years if the return is not filed within the due date –
• Loss under the head ‘Capital Gains’, or
• Loss under the head ‘Profits and gains from business or profession’.

4. However, loss from house property and unabsorbed depreciation can be carried forward for
set-off even though the return has not been filed before the due date.
Imprisonment for Failure to Furnish Return of income
As per section 276CC, if the assessee does not file his return of income, he might have to
face imprisonment also. This happens when a person will fully defaults in filing the ITR to
evade the payment of taxes.
As per the provisions of this section, the assessee shall be punishable as follows:
• in a case where the amount of tax payable exceeds twenty-five hundred thousand
rupees, the assessee shall be punishable with strict imprisonment for a minimum of
six months which may extend to seven years with fine;
• in any other case, the assessee shall be punishable with imprisonment for a
minimum of three months which may extend to two years with a fine.
However, such provisions will not apply if:
• the assessee furnishes the return before the end of the relevant assessment year; or
• the net tax payable defaulted by such person (other than a company) for the year
does not exceed ten thousand rupees.
However, in the case of companies, the punishment is applicable irrespective of the
amount of default.
Conclusion:
Hence, if you have missed filing your return for the financial year 2020-21, you can still file it
up till 31stMarch 2022, along with the payment of a penalty and interest amount, if any.
Since the interest is calculated for every additional month or part of a month of delay, it is
better to file the belated return as early as possible.
Source:https://www.manishanilgupta.com/blog-details/can-i-file-itr-for-financial-year-2020-
21-after-31stdecember-2021