What are the charges and what do you lose?
"The biggest losses are usually late fee, interest and loss of certain tax advantages. Taxpayers may also lose the ability to carry forward certain losses, while refunds could take longer because the return is processed later," Anandan said.
Jain pointed out that taxpayers can still claim most deductions and exemptions, including those under Sections 80C and 80D, HRA, the standard deduction, capital gains exemptions under Sections 54 and 54F, along with TDS credits and eligible refunds.
Can a belated return be corrected later?
Experts say filing a belated return does not mean taxpayers lose the opportunity to rectify mistakes.
"A belated return filed under Section 139(4) can generally be revised under Section 139(5), provided it is within the prescribed timeline and before assessment is completed," Anandan said.
Experts also advise taxpayers to pre-validate their bank account to avoid delays in receiving refunds and ensure that all income has been correctly disclosed to minimise the chances of receiving defective return notices.