ITR filing deadline: December 31, 2024, marks the closing deadline for submitting belated and revised revenue tax returns for FY 2023-24 (AY 2024-25). Whilst numerous taxpayer classes have distinct ITR filing deadlines, the closing date for belated and revised returns stays the identical. Many people stay unaware of the implications of lacking the December 31, 2024, submission deadline for FY 2023-24.
ITR filing: What are the consequences of lacking the belated return filing deadline on December 31, 2024?
If one fails to submit a belated return by December 31, 2024, particular consequences apply.
Under Section 139(4) of the Income Tax Act, belated returns incur a Rs 5,000 penalty, no matter excellent tax quantities. A diminished penalty of Rs 1,000 applies for decrease taxable revenue. However, people with revenue beneath the Rs 3 lakh fundamental exemption restrict face no penalties.
Kinjal Bhuta, Secretary of Bombay Chartered Accountants’ Society, advised ET, “Belated return is the last chance for the taxpayer to file the ITR and claim refunds and certain losses. If the belated return is not filed, the person misses those claims and credits for that assessment year. After the expiry of the filing of the belated return, only an updated return can be filed subject to the condition that there is a tax liability payable. Further, if no belated return is filed, the taxpayer shall have to face increased interests and penalties on the tax liabilities if a notice is sent by the income tax department.”
A major limitation of filing belated returns for FY 2023-24 is the lack of ability to pick out the outdated tax regime, as the new regime grew to become default from April 1, 2023. Consequently, belated returns should comply with the new tax regime.
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The outdated tax regime supplied numerous deductions and exemptions unavailable in the new tax regime. These provisions helped cut back taxable revenue and subsequent tax obligations.
The new regime permits solely two deductions: a normal deduction of Rs 50,000 for FY 2023-24 (AY 2024-25) and employer NPS contributions as much as 10% of fundamental wage. Additional advantages like Section 80C, 80D, and HRA exemptions are not relevant beneath the new construction.
ITR filing: What in case you miss the revised return filing December 31, 2024 deadline?
When a taxpayer must rectify errors in authentic or belated returns, they have to submit a revised return. This permits corrections of assorted oversights, resembling unreported revenue, unclaimed deductions, or omitted checking account particulars.
Bhuta says, “If the taxpayer misses the deadline to file a revised return, there is no other mechanism to file a revised return again for that assessment year and to claim refunds or losses. The income tax laws allow the filing of an updated return. However, the updated return cannot be filed in cases where the taxpayer has losses, it results in an increased refund, or the tax return has an effect of reducing the total tax liability as filed in the original or belated return. There are many other criteria as to when an updated return cannot be filed. So, if a taxpayer misses the revised return deadline, the only way in which any additional claim or credit can be requested is during the assessment proceedings. However, that is subject to litigation.”
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Whilst taxpayers can submit a number of revised returns, tax specialists advise in opposition to frequent revisions as this might set off scrutiny from the Income Tax Department.
Regarding intimation notices, Bhuta explains, “As per section 139(5) of the Income Tax Act, 1961, ITR can be revised only before three months before the end of the relevant assessment year or before the completion of assessment, whichever event happens first. The ITR can be revised even after an intimation has been received under section 143(1). However, once the ITR is processed under a regular scrutiny assessment under section 143(3), the same cannot be revised.”
For the monetary yr 2023-24 (AY 2024-25), taxpayers have till December 31, 2024, to submit their revised returns.
