ITR Deadline on July 31, 2024: As the deadline for filing income tax returns (ITR) for the assessment year (AY) 2024-25 approaches on July 31 and the income tax department seems in no mood to extend it, failing to file your ITR on time can lead to a series of repercussions, ranging from financial penalties to legal implications. Here’s a comprehensive look at what happens if you miss the ITR filing deadline of July 31.
Late Filing Fees
Under Section 234F of the Income Tax Act, if you miss the July 31 deadline, you will be liable to pay a late filing fee. For returns filed after the due date but before December 31, a fee of Rs 5,000 is applicable. However, if the return is filed after December 31, the fee increases to Rs 10,000. Importantly, if your total income does not exceed Rs 5 lakh, the maximum penalty is Rs 1,000.
Interest on Tax Due
If there are any taxes payable, interest at the rate of 1 per cent per month or part of the month on the outstanding tax amount is charged under Section 234A from the due date till the date of filing the return.
No Old Regime
Individuals who opted for the old tax regime and have already paid taxes and submitted investment and income proofs accordingly risk losing their benefits if they miss the deadline, as they will be automatically shifted to the new tax regime, which is the default option. This change could be more expensive because the new regime does not offer the deductions and exemptions available under the old regime, potentially leading to higher taxes and interest payments.
Restrictions on Carry Forward of Losses
Losses under the head ‘Profits and Gains of Business or Profession’ and ‘Capital Gains’ can only be carried forward if the ITR is filed before the due date. If you miss the ITR filing deadline of July 31, you will not be allowed to carry forward certain losses to subsequent years. This can have a significant impact on your future tax liabilities and financial planning.
Loss of Interest on Refunds
In case you are entitled to a refund, filing the return after the due date may result in delayed processing of the refund. Moreover, you may lose the interest on the refund amount for the period of delay. Timely filing ensures that you receive your refund along with interest, thereby maximising your financial benefit.
Who Needs to File ITR?
In India, the requirement to file an income tax return (ITR) applies to individuals, Hindu Undivided Families (HUFs), and businesses that meet certain criteria. Individuals must file ITR if their total income exceeds the basic exemption limit, which is Rs 2.5 lakh for individuals below 60 years, Rs 3 lakh for those aged 60 to 80 years, and Rs 5 lakh for those above 80 years.
Apart from income, other criteria are also there for mandatory filing of ITRs, including if your electricity bill crosses Rs 1 lakh in a year, over Rs 2 lakh foreign travel, savings deposits exceeding Rs 50 lakh, etc.
Also Read: Who Needs to File Income Tax Return for AY 2024-25?
In India, over 8 crore ITRs are filed. So far, in the current assessment year 2024-25, over 5.43 crore ITRs have already been filed as on July 29.
In the previous assessment year 2023-24, India saw record high ITR filings of around 6.77 crore till July 31, 2023. However, till December 31, 2023, the number of ITRs filed increased to 8.18 crore.
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