Income Tax News: Even beyond the deadline of July 31, there are ways to file ITRs; however, with certain consequences for delay. Hence, here is a detailed explanation to help you with what happens and what to do if you miss the deadline:
Understanding the Deadline
July 31 Deadline: Hence the 31st July, 2024, has been ordained as the last date for submitting ITR. Hence, it is FY 2023-24, which becomes the Assessment Year 2024-25. The taxpayers miss meeting the deadline and fail to contribute their taxes at the right on time in such cases.
Filing After the Deadline
Belated Return: Even if you miss the deadline of July 31, you can always file your ITR. This is what most of us call a ‘belated return.’ The due date for filing a belated return for FY 2023-24 is generally December 31, 2024.
Penalties and Consequences: There are penalties for filing a belated return. The amount charged until December 31 is ₹1,000 for taxation up to ₹5 lakh.
For those earning more than this, the penalty could be ₹5,000 if the return is filed by December 31, and ₹10,000 if filed later.
Financial Ramifications
Interest on Tax: Other than penalties, late filing also invites interest on any tax payable under Section 234A of the Income Tax Act, which will be charged at the rate of 1 percent per month or part thereof for the amount of outstanding tax.
Complications Galore: Timely filing is very important to avoid problems that may include delayed refunds, restrictions on revising the return and problems in carrying forward losses to subsequent years.
Steps to File Belated Return
Online Filing: The belated return can be filed online. All the documents and details required therein need to be filled correctly to avoid errors and delay.
Consultation: The tax payer must consult a tax professional in times of confusion or problems, for consultation or compliance purposes.
Key Considerations
Avoiding Penalties: It’s advisable to file your ITR by the due date to avoid late fees and interest charges.
Financial Planning: Missing the deadline can disrupt financial planning, especially if refunds are due or if the taxpayer needs to comply with other financial requirements linked to tax filing.
Though missing the July 31 deadline is not ideal, one can file a belated return up to December 31, 2024, with penalties and interest. Obviously, it’s best to file your return on time for avoiding these additional costs and headache. Utilize online resources and professional advice to make sure that tax filing has been done correctly and in compliance with the current