Now Reading: Missed ITR deadline? You can still claim a refund but dues may adjust it
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Missed ITR deadline? You can still claim a refund but dues may adjust it
Missed ITR deadline? You can still claim a refund but dues may adjust it
Taxpayers who missed the July 31 deadline for filing income tax returns can still claim a refund by filing a belated return by December 31 of the assessment year. The tax department…
Taxpayers who missed the July 31 deadline for filing income tax returns can still claim a refund by filing a belated return by December 31 of the assessment year. The tax department processes refunds only after the return is filed and e-verified, which typically takes four to five weeks.
However, if you have an outstanding tax demand from a previous year, the department can adjust the refund against that unpaid amount. The refund for AY 2026-27 could be partially reduced or fully absorbed by such dues.
Filing a belated return attracts a late fee: up to Rs 5,000 for income above Rs 5 lakh, and up to Rs 1,000 for income up to Rs 5 lakh. Unpaid tax also draws interest of 1% per month under Section 234A from the original due date until the return is filed.
Indian Opinion Analysis
The ability to adjust refunds against past demands is a standard mechanism under Section 245 of the Income Tax Act, which allows the tax department to set off refunds against any outstanding liability. For a taxpayer with a prior demand, the net outcome may be zero refund despite having paid excess TDS. The key number to track is the demand outstanding in your Form 26AS or the income tax portal. Filing the belated return before December 31 ensures eligibility for refund processing, but the actual credit depends on whether prior dues are cleared first.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
