ITR Penalty: For individual taxpayers whose accounts do not require auditing, the deadline for filing income tax returns (ITRs) for the financial year 2023-24 (the assessment year 2024-25) is July 31, 2024. However, the Income Tax Department has begun sending reminders to taxpayers through emails and SMSes to ensure they meet the ITR filing deadline and avoid penalties.
The last date to file a belated return for the financial year 2023-24 (assessment year 2024-25) is December 31, 2024. Filing your ITR on time is crucial for several reasons. If you miss the July 31 deadline, you can still file a belated return but will face a penalty in addition to the tax due and interest.
What Is a Belated Tax Return?
If you miss filing your tax return by July 31, you can still file a belated return. This can be submitted up to three months before the end of the relevant assessment year.
Disadvantages of Filing a Belated ITR
Filing a belated income tax return (ITR) comes with certain drawbacks. Beyond incurring a penalty for late submission, you lose several benefits:
-You cannot carry forward losses from capital gains, business income, and other sources (except for losses from house property).
-You are not allowed to opt for the new tax regime when filing a late ITR for the Assessment Year 2024-25.
Penalty for Missing the July 31 Deadline
Under Section 234F of the Income Tax Act, the penalties for filing a belated return for the financial year 2023-24 (AY 2024-25) are as follows:
-For individuals with a net taxable income exceeding Rs 5 lakhs, the penalty may be up to Rs 5,000.
-For taxpayers with a net taxable income of Rs 5 lakhs or less, the maximum penalty is Rs 1,000.
-In addition to the late filing fees, interest on any unpaid taxes will accrue from the original due date until the full amount is settled. It’s crucial to note that the penalty applies even if the belated ITR shows zero tax payable. (Also Read: ITR Filing 2024: How To Check Tax Refund Status Online With PAN Card | Refund Timeline Explained)
Notably, a belated ITR can only be submitted and confirmed if the challan information for paying the late filing fee is included in the ITR form.