New Delhi: The last date to file Income Tax Return (ITR) for FY 2023-24 is 31st July 2024. If an individual fails to file an ITR by the deadline, then the individual can file a late or belated ITR by 31 December 2024. However, as per Section 234F of the Income Tax Act, 1961, a late fee of Rs 5000 will be imposed on the taxpayer for filing a belated return.
Which ITR to file?
There are 7 types of ITR. Based on the source of their income, taxpayers can choose to file a suitable ITR.
ITR 1 is also called SAHAJ. Individuals having a total income of up to Rs 50 lakh and one house property can file ITR 1.
Individuals earning from the sale or purchase of shares should file ITR 2.
Individuals involved in futures and options trading or intraday stock trading are eligible to file ITR-3.
ITR late penalty
While a taxpayer can file a late ITR, it is recommended to file an ITR by the original due date to avoid penalty and other consequences. A penalty of Rs 5,000 is levied for a belated return. However, the Income Tax Department has given relief to small taxpayers. Individuals having income up to Rs 5 lakh will have to pay Rs 1000 as a penalty. These taxpayers will have to pay the fine even if they have NIL taxable liability.
Disadvantages of filing late ITR
From FY2023-24, the default tax regime is the new tax regime. Taxpayers can choose their desired regime while filing ITR. However, individuals filing late ITR can not opt for the old tax regime. So, you will have to pay taxes as per the new slab rate if you miss the original due date for filing a return. With this, people also lose the benefits of claiming deductions on investments made by them under the new tax regime.
Apart from this, carry forward of losses is not allowed while filing late ITR. Only setting off their capital losses against capital gains made during the year is allowed to late ITR filers.
Last date to file ITR: The last date to file Income Tax Return is 31st July 2024. Taxpayers will have to pay a a late fee of Rs 5000 as penalty for filing late/belated ITR, as per Section 234F of the Income Tax Act, 1961. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
