The deadline for filing Income Tax Returns for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024. Delayed payment of taxes may result in penalties or interest charges, depending on the extent of the delay.
Submitting the Income Tax Return (ITR) is essential as it outlines a taxpayer’s earnings over the fiscal year, and doing so promptly is vital to avoid incurring penalties. Furthermore, the Income Tax Department sends reminders to individuals to ensure they file their income tax returns punctually.
The deadline for filing ITRs for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024. Given the complexity involved, it’s understandable that some individuals might find the process laborious. That’s why you have the option to file a belated return until December 31, 2024, although this will incur a penalty.
Also Read– What is the difference between ITR-1 and ITR-2 forms?
Late filing fee for ITR
Penalties for late filing of an ITR in India vary based on your income level. These include:
- For individuals with a net taxable income exceeding ₹5 lakhs for the financial year 2023-24 (AY 2024-25), filing a belated return may incur a penalty of up to ₹5,000.
- For taxpayers with a net taxable income of ₹5 lakhs or less, the maximum penalty for filing a belated ITR is limited to ₹1,000.
Individuals with taxable income below the basic exemption limit who file an ITR solely to claim a refund are exempt from penalties for late filing. The taxable income threshold refers to gross taxable income before deductions are applied. Being tax-compliant is crucial for a variety of reasons:
- Legal requirement: It is mandatory to file your income tax return. Neglecting to comply can result in penalties and potential legal consequences.
- Peace of mind: Ensuring your taxes are filed accurately can provide reassurance and prevent future complications.
- Advantages: Timely filing of your return could qualify you for specific tax benefits or refunds.
In addition to penalties, you may also incur interest on any outstanding taxes from the initial due date until the date of payment. In certain situations, filing late may result in losing the opportunity to carry forward specific tax deductions or losses.
Above all, it is advisable to submit your ITR early to circumvent last-minute stress and potential penalties. Ensure you collect all essential documents such as salary slips and investment proofs well ahead of time to streamline the filing process. If you encounter complexities during filing, consider consulting a tax professional or utilizing online resources offered by the Income Tax Department.
Frequently Asked Questions
1. What happens if I miss the July 31 deadline to file my income tax return?
If you miss the July 31 deadline for filing your ITR for the financial year 2023-24, you can still file a belated return until December 31, 2024, albeit with a penalty. The penalty varies based on your income level, up to ₹5,000 for higher earners and ₹1,000 for those with taxable income up to ₹5 lakhs.
2. Are there exceptions to penalties for late filing of income tax returns?
Yes, individuals with taxable income below the basic exemption limit who file an ITR solely for claiming a refund are exempt from penalties for late filing. This exemption applies regardless of income tax liability, focusing instead on the need for a refund.
Read More: INCOME TAX RETURN FILING: Do’s & dont’s
3. Why is it important to file income tax returns on time?
Timely filing of income tax returns is crucial as it fulfills a legal requirement and helps avoid penalties and potential legal consequences. Additionally, it ensures peace of mind, qualifies you for tax benefits or refunds, and prevents complications like losing the opportunity to carry forward tax deductions or losses in certain cases.
