ITR filing in January: The Central Board of Direct Taxes (CBDT) has announced an extension of the deadline for resident individuals to file belated and revised Income Tax Returns (ITRs) for the assessment year (AY) 2024-25. The new deadline is now January 15, 2025, instead of the previous deadline of December 31, 2024.
Individuals who missed the original deadline on July 31, 2024, or need to revise their filed returns can now sigh a sigh of relief as they would get additional time. The CBDT is encouraging taxpayers to take advantage of this extra time to ensure their returns are filed accurately and completely.
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However, taxpayers must note that there is a penalty of Rs 5,000 imposed upon filing, regardless of any outstanding tax amount. Filing a belated return follows the guidelines outlined in Section 139(4) of the Income Tax Act. For individuals with taxable income below a specified threshold, a reduced penalty of Rs 1,000 applies. However, there is no penalty for late filing if the taxable income is below the basic exemption limit of Rs 3 lakh.
To correct errors in an original or late tax return, taxpayers can file a revised return. This revised return enables taxpayers to make corrections to any inaccuracies in their filed Income Tax Returns (ITR), including missing income, overlooked deductions, or undisclosed bank accounts. There is no penalty on revised returns.
Belated vs Revised Returns
A belated return is an income tax return that is filed after the prescribed deadline. For the Financial Year 2023-24, the deadline for filing income tax returns is July 31, 2024. If you are unable to submit your ITR by this date, you have the option to file a belated return to meet your tax obligations. The deadline for filing a belated return is December 31 of the same year. While late filing does have consequences, it is advisable to file belatedly instead of risking potential penalties for non-compliance.
CBDT on December 31 extended the last date to January 15 for the ease of taxpayers.
“The Central Board of Direct Taxes (CBDT), in exercise of its powers under section 119 of the Income-tax Act,1961 (‘the Act’), extends the last date for furnishing belated return of income under sub-section (4) of section 139 of the Act or for furnishing revised return of income under sub-section (5) of section 139 of the Act for the Assessment Year 2024-25 in the case of resident individuals from 31 st December, 2024 to 15th January, 2025,” said CBDT in a circular dated December 31, 2024.
If you have already submitted your return and subsequently discovered an error, omission, or incorrect statement, you have the option to submit a corrected return within the designated timeframe. Please note that the deadline has been extended from December 31, 2024, to January 15, 2025.
In accordance with section 139(5) of the Income Tax Act, 1961, taxpayers have the option to submit a revised return multiple times, if necessary. However, it is advisable to limit unnecessary revisions in order to avoid attracting scrutiny from the Income Tax Department.
Even if a taxpayer has already received a notice under section 143(1), they still have the ability to revise their Income Tax Return (ITR). It is important to note that once an ITR has undergone a regular scrutiny assessment under section 143(3), it cannot be revised.
Things to note for belated returns
Filing a late return for FY 2023-24 under Section 139(4) of the Income Tax Act results in a penalty of Rs 5,000. It is important to note that choosing the old tax regime is no longer an option for taxpayers who file belated returns for this fiscal year. As of April 1, 2023, the default tax regime is now the new tax regime.
The Old Tax Regime provides various deductions and exemptions that are not available in the new tax regime. These benefits help in reducing taxable income and, consequently, income tax liabilities for taxpayers.
The New Tax Regime only permits two deductions for the financial year 2023-24 (Assessment Year 2024-25): a standard deduction of Rs 50,000 and the employer’s contribution to the National Pension System (NPS) of up to 10% of the basic salary. Notably, common deductions such as those under Section 80C, 80D, and HRA tax exemption are not eligible under this new tax system.
Missing the January 15 deadline
Failure to submit your belated Income Tax Return (ITR) for the financial year 2023-24 by January 15, 2025, can lead to various consequences. Late filing penalties may rise considerably, and you risk forfeiting benefits such as the option to carry forward losses.