Belated ITR Filing Deadline: December 31, 2024 – Penalties & Consequences

If you missed the original Income Tax Return (ITR) deadline for the financial year 2023-24, the clock is ticking. You now have until December 31, 2024, to file your belated ITR. Failing to meet this deadline will result in penalties and interest charges on any unpaid tax. The original deadline was July 31, 2024, but this is your final chance to file your ITR without facing serious financial repercussions.

Key Deadlines to Remember:

• Original ITR Deadline: July 31, 2024 (for taxpayers who don’t require an audit).
• Belated ITR Filing Deadline: December 31, 2024 (with a penalty).
• Revised ITR Filing Deadline: December 31, 2024 (for correcting errors in original or belated returns).

Penalties for Late Filing of ITR

If you file your Income Tax Return (ITR) after the original deadline but within the final deadline, the penalties are as follows:

1. Penalty Amount:
   • ₹5,000: If the ITR is filed on or before December 31 of the assessment year.
   • ₹10,000: If the ITR is filed after December 31 but before March 31 (the end of the assessment year).
2. Reduced Penalty for Lower Income:
   If your total income is up to ₹5 lakh, the penalty is reduced to ₹1,000, even if the return is filed late.
3. Interest on Outstanding Tax:
   If you have unpaid taxes, interest under Section 234A will apply at 1% per month or part of the month until the ITR is filed.

Impact of Missing the December 31 Deadline

If you fail to file your ITR by December 31 of the assessment year:

1. You may not be able to file the return unless:
   • The Income Tax Department issues a notice.
   • You file a condonation request under Section 119 explaining genuine reasons for the delay.

1. Consequences of Missing the Deadline:
   • A penalty of ₹10,000 may apply.
   • Interest at 1% per month will be charged on outstanding tax dues.
   • You may lose the ability to carry forward losses (except for losses under “Income from House Property”).
   • Non-filing may result in prosecution under Section 276CC of the Income Tax Act.

Filing Process for Belated and Revised ITR

Filing a belated ITR follows the same procedure as filing an original ITR, but it is crucial to select Section 139(4) during the filing process. A taxpayer must also ensure that all penalties and dues are settled before submission. After filing, you have 30 days to verify your return.

If you realize you made mistakes in your ITR, you can file a revised return under Section 139(5). This option is available to correct errors in the original or belated returns, but the deadline to file a revised ITR is also December 31, 2024. To revise your return, select Section 139(5) during filing and provide the acknowledgement number of the original or belated ITR.

What Happens If You Miss the December 31 Deadline?

If you miss the December 31 deadline, you may not be able to file an ITR unless directed by the Income Tax Department. In such cases, taxpayers can file an updated return, but it will attract penalties of up to 50% of the unpaid tax.

Additionally, failure to meet the deadline might result in prosecution under Section 276 CC of the Income Tax Act.

The Importance of Disclosing Foreign Assets

For taxpayers earning income from foreign sources or holding foreign assets, full disclosure is mandatory under Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) in the ITR form. Non-disclosure can lead to serious legal consequences, including hefty fines and imprisonment.

The Income Tax Department has launched campaigns to help taxpayers disclose their foreign income correctly. Therefore, taxpayers must be diligent when filing ITR, especially when it involves foreign assets and income.