New Delhi: The deadline for filing Income Tax Returns (ITR) for the assessment year 2024-25 is July 31, 2024. However, ITR can be filed after this deadline as well. If taxpayers miss this deadline, they can file a belated ITR or late ITR by December 31, 2024. However, according to Section 234F of the Income Tax Act, 1961, a late fee of Rs 5,000 is applicable for filing a belated return.
ITR filing late penalty
It’s advisable to file the ITR by the original due date to avoid penalties and other repercussions. For individuals with income up to Rs 5 lakh, the penalty is reduced to Rs 1000, irrespective of whether they have any tax liability or not.
Importantly, this penalty applies regardless of whether any tax payment is due at the time of filing the ITR. When submitting a belated ITR, it’s necessary to include details of the late filing fee payment in the ITR form.
Disadvantages of filing a late ITR
There are several disadvantages of filing a late ITR. From the financial year 2023-24 onwards, the default tax regime is the new tax regime, offering different tax rates and deductions from the old regime. Late filers forfeit the option to choose the old tax regime and must adhere to the new slab rates, potentially losing out on deduction benefits for investments.
No carry forward of losses
Furthermore, late filers cannot carry forward losses to subsequent years, limiting them to offsetting capital losses against capital gains made during the same year. Therefore, timely filing of ITR not only avoids penalties but also preserves eligibility for tax benefits and loss carry-forward provisions under the income tax laws.
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Income Tax Return Last date: Penalty applies regardless of whether any tax payment is due at the time of filing the ITR. When submitting a belated ITR, it’s necessary to include details of the late filing fee payment in the ITR form. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
