ITR Filing Deadline: Taxpayers with income above the basic exemption limit face penalties for late filing.
Attention taxpayers! The annual tax season is coming to an end, with the final deadline for filing individual income tax returns set for today, i.e., Wednesday, July 31. Despite some speculation about a possible extension, officials have not suggested any changes to the deadline yet. Last year, many taxpayers were surprised when no extension was granted. So what happens if you don’t file your ITR today? Let’s find out:
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ITR Filing Late Fee Penalty
First off, individuals who fail to pay their returns by July 31, will have to pay a penalty fee. Belated returns for the Financial Year 2023-2024 must be filed by December 31, 2024. So, although you can still file the returns, you will have to pay a fee of Rs 5000 as per Section 234F of the Income tax Act, 1961. For those whose income is capped at Rs 5 lakh, the penalty for missing the tax filing deadline is a maximum of Rs 1,000. It is important to note that this fee applies even if no actual tax is owed.
Beyond the late fee, individuals will also be responsible for interest on any outstanding taxes. This interest accumulates from the original due date until the balance is fully paid.
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Who is liable to pay penalty fee?
Income Exceeds Basic Exemption Limit
Taxpayers with income above the basic exemption limit face penalties for late filing. The threshold varies by tax regime: the new tax regime sets it at Rs 3 lakh for all taxpayers, whereas the old tax regime has different limits that depend on the taxpayer’s age.
Conditions Under Section 139(1)
Foreign Travel: If you spend Rs 2 lakh or more on foreign travel, you are supposed to file the ITR
Electricity Bills: If your electricity bills total Rs 1 lakh or more, you need to file.
Bank Deposits: Deposits of Rs 1 crore or more in current accounts also require an ITR.
Holding Foreign Assets
If you have foreign assets or income, you must file an ITR regardless of your income level. Penalties apply for late filing in these cases.
