The world of e-commerce is fast-paced, and sellers on platforms like Amazon and Flipkart often prioritize sales growth, logistics, and customer satisfaction. In this rush, tax compliance sometimes takes a backseat, leading to missed deadlines for filing Income Tax Returns (ITR). For such sellers, filing a belated return becomes the only option. While belated returns can still help maintain compliance, they come with risks such as penalties, loss of certain benefits, and increased scrutiny. This is why Amazon and Flipkart sellers in 2025 prefer TaxBuddy to handle their belated returns smoothly and effectively.

What is a Belated Return?

A belated return is an ITR filed after the due date specified under the Income Tax Act. For non-audit cases, the due date is generally 31st July, and for audit cases, 31st October. If a seller misses these deadlines, they can still file a belated return before 31st December of the assessment year. For example, for FY 2024-25, the belated return must be filed by 31st December 2025.

Risks of Filing a Belated Return

Filing ITR late carries consequences that every online seller should know:

• Late Fee under Section 234F: A penalty of up to Rs. 5,000 is imposed for late filing.
• Interest Liability: Interest under Sections 234A, 234B, and 234C is charged for delayed payments of tax.
• Loss of Carry Forward: Losses from business or capital gains cannot be carried forward if the return is not filed on time. This is particularly harmful for sellers who incur marketing or expansion expenses.
• Refund Delays: If excess TDS is deducted by Amazon or Flipkart, refunds get delayed when returns are filed late.
• Increased Scrutiny: Belated returns are more likely to attract attention from the Income Tax Department, increasing the chances of receiving notices.
  
  
  

Why Amazon & Flipkart Sellers Miss Deadlines

Online sellers often deal with multiple compliance tasks like GST returns, advance tax payments, and TDS reconciliation. The sheer complexity of reconciling sales across platforms and maintaining accurate records often leads to delays in filing ITR. Many sellers also underestimate the importance of deadlines or assume TDS deducted by marketplaces covers their liability, leading to last-minute surprises.

How TaxBuddy Helps with Belated Returns

TaxBuddy has emerged as the preferred tax partner for Amazon and Flipkart sellers because it simplifies the entire belated return process. Here’s how:

Accurate Reconciliation of TDS

E-commerce operators deduct TDS under Section 194-O. TaxBuddy ensures that these deductions are correctly reflected in Form 26AS and AIS, so sellers get full credit for taxes already paid.

Correct Computation of Liability

Filing belated returns without proper computation can result in underreporting income or paying less tax, which may trigger notices. TaxBuddy accurately calculates liability by considering all income sources, GST data, and expenses.

Maximizing Deductions

Even in belated returns, sellers can claim deductions for expenses like packaging, shipping, advertising, and rent. TaxBuddy ensures no legitimate expense is missed, reducing the final tax burden.

Avoiding Penalties and Interest Issues

While late fees are unavoidable in belated returns, TaxBuddy minimizes additional penalties by ensuring correct tax payments and timely submission before the 31st December deadline.

Handling Notices

If a belated return attracts a notice, TaxBuddy’s notice management service helps respond quickly and effectively, reducing stress for sellers.

Expert Guidance on ITR Forms

Sellers often get confused between ITR-3 and ITR-4. TaxBuddy guides them in choosing the right form based on turnover, presumptive taxation eligibility, and audit requirements.

Benefits of Filing Belated Returns with TaxBuddy

1. Peace of Mind: Professional handling of all compliance reduces stress for sellers.
2. Accurate Filing: No risk of mismatches with GST or TDS data.
3. Maximized Savings: Proper deductions ensure lower tax liability even when filing late.
4. Notice Management: Expert responses to queries from the Income Tax Department.
5. Faster Processing: Smooth reconciliation speeds up refunds and reduces delays.
   
   
   

Why Sellers Rely on TaxBuddy in 2025

In 2025, compliance has become stricter, with tighter scrutiny of e-commerce businesses. Amazon and Flipkart report seller transactions directly to the government, making accurate and timely ITR filing essential. For sellers who miss deadlines, TaxBuddy acts as a safety net, ensuring belated returns are filed correctly and with minimal financial impact. By providing both DIY and expert-assisted filing options, TaxBuddy caters to every type of seller.

Final Thoughts

Missing the ITR filing deadline can create stress for e-commerce sellers, but it’s not the end of the road. Belated returns allow sellers to stay compliant, though with some limitations. The key is to file correctly, reconcile data accurately, and minimize penalties. This is where TaxBuddy comes in as the trusted partner for Amazon and Flipkart sellers in 2025. With expert support for TDS reconciliation, GST compliance, ITR filing, and notice management, TaxBuddy ensures that even belated returns are handled with precision and care. Sellers can focus on growing their online businesses while TaxBuddy takes care of their tax obligations.

Pro Tip: Don’t delay compliance any further. If you missed the deadline, file your belated return today with TaxBuddy and safeguard your business from unnecessary penalties and scrutiny.