What Happens If You Miss the Due Date to File Your ITR

For the financial year 2023-24 and assessment year 2024-25, the ITR filing due date for individuals is July 31, 2024. Filing your ITR on time is not just a legal obligation but has several benefits, especially in light of the recent amendments under the New tax regime.

This year brings additional importance to the ITR Filing process due to the recent amendments introduced under the Modi 3.0 Budget on July 23, 2024. These changes aim to simplify the tax regime, providing various benefits to taxpayers. However, to fully leverage these benefits, timely filing of your ITR is paramount. Understanding these amendments and how they impact your tax obligations can help you make informed decisions and maximise your financial advantages.

[Read: New Tax Regime v/s Old Tax Regime: Which One Should You Opt for After Modi 3.0 Budget?]

The Modi 3.0 Budget introduced several significant changes to the New tax regime, making it more streamlined and beneficial for taxpayers. Key amendments include:

• Standard Deduction: A higher standard deduction limit increased from Rs 50,000/- to Rs 75,000/-, benefiting salaried individuals.

• Simplified Tax Slabs: Rationalisation of tax slabs to make the regime more straightforward and taxpayer-friendly.

  Net Taxable Income	Income Tax Slab Rate
  Rs 0 - 3 lakhs	0%
  Rs 3 - 7 lakhs	5%
  Rs 7 - 10 lakhs	10%
  Rs 10 - 12 lakhs	15%
  Rs 12 - 15 lakhs	20%
  Above Rs 15 lakhs	30%

  (Source: IndiaBudget.gov.in)

• Enhanced Deductions: Increased limits for various deductions under Sections 80C, 80D, and others. The deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000/- to Rs 25,000/-. Plus, the deduction on employer's NPS contribution for private sector employees hiked from 10% to 14% of the employee's basic salary.

• Incentives for Digital Payments: Additional deductions for digital payment methods to encourage a cashless economy.

[Read: Is the Revised New Tax Regime Truly Beneficial for You? Find Out Here...]

These amendments aim to ease the tax burden on individuals and promote compliance. Filing your ITR on time ensures you can take full advantage of these changes.

In this article, we will explore what happens if you miss the due date to file your ITR for the assessment year 2024-25. We will delve into the penalties, interest charges, and other repercussions you might face. Moreover, we will highlight the steps you can take to avoid these pitfalls and ensure that your tax filing is smooth and compliant with the latest regulations.

Consequences of Missing the ITR Filing Due Date - July 31, 2024

If you miss the due date for filing your ITR for the FY 2023-24 and AY 2024-25, several consequences may follow:

1. Late Filing Fees

Under Section 234F of the Income Tax Act, late filing fees are levied as follows:

If the return is filed after the due date, which is July 31, 2024, but before December 31, 2024, a penalty of Rs 5,000 is applicable.

If the return is filed after December 31, 2024, the penalty increases to Rs 10,000.

For taxpayers with a total income of up to Rs 5 lakhs, the penalty is restricted to Rs 1,000.

2. Interest on Tax Due

Under Section 234A, interest is charged for late filing at a rate of 1% per month or part of the month on the unpaid tax amount. This interest is calculated from the due date of filing until the actual date of filing the return.

3. Loss of Certain Deductions and Exemptions

Filing your ITR after the due date may result in the loss of certain deductions and exemptions. For example, deductions under Section 80C (investments in PPF, NSC, etc.), Section 80D (medical insurance), and other sections cannot be claimed if the return is filed late.

[Read: Why Salaried Individuals Must File Their ITR Before Time]

4. Inability to Carry Forward Losses

If you have incurred losses under the heads of 'Capital Gains' or 'Profits and Gains of Business or Profession,' you cannot carry forward these losses to future years unless the return is filed within the due date.

5. Delay in Refunds

If you are eligible for a refund, a delay in filing your return will result in a delay in receiving the refund. Additionally, interest on the refund amount may be reduced due to late filing.

6. Notice from the Income Tax Department

Failure to file your ITR can attract a notice from the Income Tax Department. Under Section 142(1), the department can issue a notice requiring you to furnish your return. Non-compliance with this notice can lead to further legal action.

In an ideal world, everyone would file their Income Tax Returns (ITR) well before the deadline, but life often throws curveballs that can derail the best-laid plans. Whether it's an unexpected medical emergency, a demanding work schedule, or simple forgetfulness, there are countless reasons why you might miss the July 31st deadline.

Fortunately, the Indian tax system provides the option to file a belated return.

Filing a Belated Income Tax Return

While it's always best to file on time to avoid penalties, a belated return ensures that you can still fulfil your tax obligations, albeit with some added costs. For the assessment year 2024-25, you can file a belated return until December 31, 2025. This extended timeline offers a valuable opportunity for those who missed the initial deadline to rectify their oversight and stay compliant with tax laws.

However, filing a belated return comes with its own set of repercussions. As mentioned above, the most immediate consequence is a late filing fee under Section 234F of the Income Tax Act.

Despite these downsides, filing a belated return is far better than not filing at all. It keeps you in good standing with the Income Tax Department and helps avoid more severe consequences, such as receiving a notice or facing legal action.

Moreover, it enables you to claim any refunds you are due, albeit delayed, ensuring that you don't forfeit any of your entitled tax benefits. If you find yourself in the position of having missed the deadline, take swift action to file a belated return and mitigate any further complications.

Sometimes, even after filing your belated ITR, you may realise there were errors or omissions in your return. Thankfully, the Income Tax Department allows for the revision of belated returns, offering taxpayers an additional layer of flexibility and relief.

Revising a Belated Return

Revising a belated ITR can be a lifesaver if you discover mistakes in your initial filing. For instance, you might have overlooked declaring certain income sources, missed out on claiming deductions, or made errors in calculating your tax liability. The good news is that these errors can be corrected by filing a revised return.

For the assessment year 2024-25, you can revise your belated return anytime before the end of the assessment year, which is March 31, 2026. However, do note that the penalties and interest for late filing still apply. While filing a belated ITR is a necessary step if you miss the original deadline, revising it can be equally important if you find mistakes. The process is relatively simple and provides an invaluable opportunity to ensure your tax affairs are in order.

To conclude...

Filing your ITR on time is crucial to avoid penalties, interest, and other negative consequences. Understanding the due dates and the repercussions of missing them can help you stay compliant and make the most of the benefits associated with timely filing. By being proactive and organised, you can ensure that you meet your tax obligations and avoid unnecessary financial burdens.

In 2024, make it a priority to file your ITR on or before the due date to enjoy a hassle-free tax experience and contribute to the nation's economic growth. To avoid the consequences of missing the due date for filing your ITR, consider using digital calendars or apps to set reminders for important dates. The Income Tax Department's e-filing portal and other online tools can help streamline the filing process.

In addition, you may consider reading these articles related to ITR filing for FY 2023-24 and AY 2024-25...

How to File Income Tax Return Online for AY 2024-25

ITR Filing Made Easy: Document Checklist for FY 2023-24 Tax Season

10 Steps to File Your ITR Online for FY 2023-24 (AY 2024-25)

Income Tax Return for FY 2023-24: Which ITR Form Should You Choose?

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

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