The due date for filing an Income Tax Return (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) has passed, but taxpayers still have a final chance to submit their returns. The deadline for filing a belated return is December 31, 2024, but failing to meet this deadline comes with serious consequences. If you haven’t filed your ITR yet, it is crucial to do so before the cutoff date to avoid penalties and interest charges that could substantially increase your tax liability.
For taxpayers who do not require an audit, the original deadline to file the ITR was July 31, 2024. However, even if you missed this date, the belated filing option allows taxpayers to file their returns by December 31, 2024. Ignoring this deadline will result in fines, interest charges, and the loss of exemptions and deductions that could have reduced the tax burden.
Penalties for Missing the ITR Deadline
Taxpayers who fail to file their returns on time will incur a penalty. For delayed filings, the penalty is Rs 5,000, but if your income is less than Rs 5 lakh, the penalty will be reduced to Rs 1,000. This penalty is designed to encourage taxpayers to adhere to deadlines and avoid procrastination in filing their taxes.
Interest on Unpaid Taxes
If taxes remain unpaid after the filing deadline, taxpayers will face additional charges under Section 234A of the Income Tax Act. This section mandates that a 1% interest per month be charged on the unpaid amount until the taxes are fully paid. The longer you delay, the more interest will accumulate, increasing the total amount due and adding significant financial strain.
Loss of Exemptions and Deductions
Under the new tax system, delayed filings result in the loss of several exemptions that could have been claimed under sections 80C, 80D, and other related sections. These exemptions, which include deductions for investments and insurance premiums, help reduce taxable income, thus lowering the overall tax liability. Filing a late return means you won’t be able to take advantage of these tax-saving opportunities.
Switch to the New Tax Regime
For taxpayers who miss the deadline, the default tax regime will automatically apply. This means they will no longer be able to claim deductions available under the old tax regime. The new tax system does not offer deductions under sections like 80C or 80D, leaving taxpayers with fewer options to reduce their taxable income.
The window for filing a belated return closes on December 31, 2024. It is essential for taxpayers to file their returns on time to avoid unnecessary penalties, interest charges, and the loss of tax benefits. Stay updated with the tax filing rules and deadlines to ensure you are not caught off guard and end up with a significantly higher tax liability.
