The Belated ITR is an extremely significant red flag for those who have missed filing their income tax return for FY24. Those who haven’t filed ITR till now, usually have to do so by December 31. The date is extremely significant since anyone missing this deadline of filing a belated ITR cannot file tax returns for FY24 until the Income Tax department directs you to do so.
The December 31 deadline is just 7 days away. Belated returns are filed under Section 139(4) of the Income Tax Act 1961. It must be remembered that a belated ITR comes with penalty – the taxpayer has to a penalty of either Rs 1,000 or Rs 5,000. If the annual income is below Rs 5 lakh, the penal amount is Rs 1,000, else Rs 5,000. If the income is less than the basic exemption limit of Rs 3 lakh, there is no penalty.
Bombay HC sets new deadline of Jan 15, 2025
However, this time the courts have thrown a lifeline. Bombay High Court has passed an order that enjoins on the Central Board of Direct Taxes (CBDT) to push back the deadline for filing belated ITRs as well as revised Income Tax Returns from December 31, 2024 to at least January 15, 2025. According to reports, the court order cam against a backdrop of a public interest litigation. The petition was done by the Chamber of Tax Consultants and it showed trouble from procedural changes in the ITR utility.
Why did the court set new ITR filing deadline
The petitioners said changes in the utility software used for filing returns led to a situation where rebate under the new tax system under section 87A was denied. The PIL mentioned that the updated version of the software was made available on July 5, 2024. It was found that taxpayers could not claim rebate under the said section. According to the court, this relief was a significant one and could not be denied due to any reason – technological modification or procedural reasons. According to experts, a rebate of even up to Rs 25,000 (new tax system) or Rs 12,500 (old tax system) can be availed of by individual taxpayers with total taxable income of Rs 7 lakh and Rs 5 lakh and constitute a very significant amount.
While the deadline for filing ‘Belated ITR’ was December 31, Bombay High Court has stepped in to direct extension of the deadline to January 15, 2025, following a PIL. The deadline of December 31, 2024 was sacrosanct. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
