The government has extended the deadline for filing belated income tax returns (ITR) for the fiscal year 2023-24 (assessment year 2024-25) to January 15, 2025. Previously, the last date for filing belated returns was December 31, 2024.
Filing Options for Taxpayers
Taxpayers have two primary options for filing ITR:
- Regular Filing: Submit ITR by the due date without any penalty.
- Belated Filing: File ITR after the due date but before January 15, 2025, with a penalty fee.
If a taxpayer misses reporting any income in their ITR, they can still file an updated return within two years from the end of the relevant assessment year, but with an additional fee.
Penalties and Exemptions
- For individuals whose accounts do not require auditing, the original deadline for filing ITR was July 31, 2024.
- Belated returns can still be filed until January 15, 2025, with a penalty ranging from ₹1,000 to ₹5,000, depending on the taxpayer’s income.
- Taxpayers whose gross income is below the basic exemption limit do not have to pay any penalty.
- Updated returns can be filed until March 31, 2027, if required.
The basic exemption limits are:
- ₹2.5 lakh under the old tax regime.
- ₹3 lakh under the new tax regime.
Restrictions on Belated Returns
Taxpayers filing belated returns cannot carry forward or set off most losses against future profits. However, losses related to house property can still be carried forward.
If tax payments are delayed beyond April 1, an interest of 1% per month will be charged on the outstanding amount. This interest is calculated from the date of filing the return until the due date for payment.
Higher TDS and TCS Rates for Non-Filers
Non-filers of ITR will face higher rates of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS):
- The rate will be twice the applicable rate or 5%, whichever is higher, if the recipient has a PAN.
- If the recipient does not provide a PAN, the rate will increase to 20% or more, as per the Income Tax Act.
Legal Consequences for Non-Filing
Under Section 276CCC of the Income Tax Act, failure to file ITR can lead to prosecution. If the unpaid tax liability exceeds ₹25,000, the defaulter could face rigorous imprisonment for six months to seven years, along with a fine.