If any person has not furnished a return of his income within the prescribed time allowed to him U/S 139(1) or within the time permitted by a notice issuedU/S 142(1), he may furnish the return for any PY at any time before the expiry of one year from the end of relevant AY or before the completion of an assessment, whichever is earlier.Section 139
Section 139(4)-Belated Return
However, the assessee may be liable to a penalty of Rs. 5,000/- u/s 271 F, if the return is furnished after the end of the relevant assessment year. There is no penalty in case the income did not require a mandatory filing as per the provisions of Section 139(1), even though the return was filed after the expiration of the assessment year.
As per the section 139(4), any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Completion of Assessment refers the due date on which the order of assessment was passed and; not the date on which the taxpayer received the order. Thus, the return furnished after the completion of assessment but; before the date on which the taxpayer receives notice of demand would not be considered valid.
An assessee cannot file a belated return of loss from business/profession and capital gains after the regular due date.
If the assessee files a return after the assessment which gets canceled, the return would still be considered valid.
A belated return filed U/S 139(4) can also be revised.
The Income Tax Department vide circular no. 9/2015 has allowed the taxpayers; to file the ITR to claim income tax refund or file loss return up to 6 years. However, such returns would only be accepted after a letter for condonation of delay is filed with the Income Tax Department & the same has been duly accepted by the income tax officer.