The Central Board of Direct Taxes (CBDT) has extended the deadline for filing belated or revised Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25 to January 15, 2025. This extension provides taxpayers with an additional 15 days from the earlier deadline of December 31, 2024. Here’s a complete breakdown of what this means for taxpayers and the key rules involved.
What Are Belated and Revised ITRs?
- Revised ITR:
- Taxpayers who have already filed their original ITR on or before July 31, 2024, can file a revised return if there are errors or omissions in the original submission.
- As per Section 139(5) of the Income Tax Act, revised returns can be filed multiple times before the assessment is finalized or up to three months before the end of the assessment year (March 31, 2025).
- Revised returns cannot be used to claim higher refunds, reduce tax liabilities, or declare additional losses.
- Belated ITR:
- Taxpayers who missed the original deadline of July 31, 2024, can file a belated return.
- Belated returns allow limited deductions, including the standard deduction of ₹50,000 and NPS contributions under the new tax regime.
- Penalties apply for filing a belated return.
Penalties and Interest for Late Filing
If you file your ITR after July 31, 2024, the following penalties apply:
| Income Slab | Penalty Amount |
|---|---|
| Income up to ₹5 lakh | ₹1,000 |
| Income above ₹5 lakh | ₹5,000 |
Additionally, interest under Section 234A is charged on any outstanding tax liability:
- Rate: 1% per month (or part of the month)
- Calculation Period: From the original due date (July 31, 2024) until the filing date.
Consequences of Missing the January 15 Deadline
Failure to meet the January 15, 2025, deadline can have serious repercussions:
- No Further Filings: Taxpayers will lose the opportunity to file or revise their ITR for AY 2024-25.
- Notifications and Penalties: The Income Tax Department may issue notices for non-compliance, along with additional penalties.
- Legal Notices: The department collects income details from various sources, which may result in action for undisclosed income.
- Loss of Carry Forward Benefits: Filing after July 31, 2024, disqualifies taxpayers from carrying forward losses to offset future tax liabilities.
Key Points for Taxpayers
- Carry Forward Benefits: File on time to retain the option of carrying forward losses.
- Timely Filing: Use the extended window to file your returns if you missed earlier deadlines.
- Penalty Awareness: Understand applicable penalties and interest charges for late filing.
- Accurate Details: Double-check income, deductions, and tax liabilities to avoid errors.
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