Deadline For Filing Income Tax Returns Approaches: Here's The Key Details For Taxpayers

Income Tax Returns: Taxpayers should ensure timely submission to avoid penalties and take advantage of the benefits associated with filing returns

The deadline for filing Income Tax Returns (ITR) for the fiscal year 2023-24 and assessment year 2024-25 is fast approaching, with the final date set for July 31, 2024. Filing your ITR is not only a legal obligation but also provides several benefits, such as serving as proof of income for loans, visas, or government tenders, and allowing taxpayers to claim refunds for any overpaid taxes.

Taxpayers should ensure timely submission to avoid penalties and take advantage of the benefits associated with filing returns. Stay informed and comply with tax formalities to manage your financial responsibilities effectively. See what happens if you fail to file ITR on time. Check the options to file a belated return if you miss the due date.

Consequences of Missing the ITR Filing Deadline

If you miss the July 31 deadline, you can still file a belated return by December 31, 2024. However, there are several consequences to be aware of:

Interest Penalty: You will incur an interest charge of 1 per cent per month or part of a month on the unpaid tax amount, as stipulated under Section 234A.

Late Fee: A late fee of Rs 5,000 will be imposed under Section 234F. This fee is reduced to Rs 1,000 if your total income is below Rs 5 lakh.

Loss Adjustment: Losses from sources such as the stock market, mutual funds, properties, or businesses can be carried forward to offset future income and reduce tax liability. However, this benefit is forfeited if you do not file your ITR on time.

Options if You Miss the Filing Deadline

Belated Return: You can file a belated return after the due date, but you will still have to pay the late fee and interest charges. Additionally, you will not be able to carry forward any losses for future adjustments. The last date for filing a belated return is December 31, 2024.

Updated Return: If you miss the December 31 deadline due to unavoidable reasons, you can file an updated return (ITR U) subject to specific conditions.

Understanding Financial Year (FY) and Assessment Year (AY)

The ITR you file for the fiscal year 2023-24 covers income earned from April 1, 2023, to March 31, 2024. The assessment year 2024-25 is the period in which this income is reviewed, and you declare all incomes, exemptions, deductions, and losses for tax assessment. The assessment year runs from April 1, 2024, to March 31, 2025.

Important Due Dates for Paying Advance Tax Instalments for FY23-24

Taxpayers should also be mindful of advance tax instalment deadlines to avoid penalties and ensure compliance with tax regulations. These due dates are crucial for managing tax liabilities throughout the fiscal year.