No penalty for missing ITR filing deadline of July 31, 2024 for these people If you are this category of taxpayer there is no penalty, however you might be able to chose the old tax regime
Missing the deadline for filing your ITR, which is July 31, 2024 for individuals not subject to income tax audit, can result in more than just a penalty.If you miss the deadline to file your income tax return, you may not receive the interest component of your tax refund, and you won't be able to carry forward any losses. However, you can still file a belated income tax return by paying a penalty. The deadline to file a belated return for the financial year 2023-24 (Assessment Year 2024-25) is December 31, 2024.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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How to file ITR after July 31 deadline?
What is the penalty for filing ITR after the July 31 deadline
"If you miss the July 31st deadline, you can still file a belated return by December 31, 2024, and depending upon your level of income such a late filing of ITR may result in penalties and interest charges," says chartered accountant Manoj Dembla who has over 30 years of experience in finance, accounting, taxation, and insolvency.
What is the penalty for filing a belated ITR?
According to Ankit Jain, partner, Ved Jain and Associates, filing a belated ITR includes payment of a late fee under section 234F as specified below:Rs 5,000 if your total income is above Rs 5 lakh, orRs 1,000 if your total income is below 5 lakh.
Jain informs that the late filing fees for belated ITR is applicable on all those who are required to file their ITRs. "This includes people who have a liability to pay tax. It also includes people whose income exceeds the basic exemption limit (Rs 2.5 lakh or 3 lakh) but do not have to pay any tax on account of the total income being below the specified level (Rs 5 or 7 lakh)," he says.
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Neither income tax refund nor any interest is given if you have filed the ITR with this amount of tax refund
"Additionally, under Section 234A, interest at the rate of 1% per month or part of the month is charged on the outstanding tax amount from the due date (July 31) till the date of filing the ITR. If you are filing a belated ITR, you are still eligible to get a tax refund. However, you may lose out on the interest on the refund under Section 244A, as interest is generally calculated from the date of filing the return or the due date, whichever is later. By filing late, the period for which interest is calculated may reduce, resulting in a lower interest amount," says Jain.
However, there are certain cases where no penalty is charged even when it will be filed after July 31, 2024.
Who can file a belated ITR without paying a penalty?
These taxpayers don't have to pay any penalty for filing a belated ITR:Taxpayers whose ITR filing deadline is October 31, 2024,Taxpayers having income below the basic exemption limitTaxpayers who are not required to file an ITR by law but are filing one voluntarily.
If you are not required by law to file an ITR then only you can file a belated ITR voluntarily without any late fees. According to Parul Aggarwal, founder, Parul Aggarwal and Associates, a CA firm, "Section 234F says that where a person is required to furnish a ITR under section 139 and fails to do so within the time prescribed (July 31, 2024, for non-audit cases), he has to pay the late filing fees."
As per Aggarwal, for certain classes of taxpayers, a penalty under section 234F shall apply even if income does not exceed the tax exemption limit, provided one is filing a belated ITR. The following class of taxpayers are mandatorily required to file their ITR:
Where the cumulative savings bank deposit of an individual exceeds Rs 50 lakh in a year;Individuals having annual sales turnover exceeding Rs 60 lakh;Professionals having income exceeding Rs 10 lakh in a financial year;Where an individual pays electricity bill exceeding Rs 1 lakh during a financial year;Where TCS/ TDS of a person exceeds Rs 25,000. The aforesaid threshold is Rs 50,000 for senior citizens;Where individual is having assets in a foreign country or is a beneficiary of assets in a foreign country;Where individual spends Rs 2 lakh or more on foreign travel for himself or another person during financial year; andWhere an individual is an authorised signatory for an account managed outside India.
"The only people who would not attract the late filing penalty would be the ones who file their ITR voluntarily and have their income below the basic exemption limit," says Jain.
According to Demble, the ITR filing deadline for those liable for income tax audits is October 31, 2024. The filing of a belated ITR is necessary only if a person was required to file an ITR but failed to do so before the specified deadline. For individuals not subject to income tax audit, the deadline for filing ITR is July 31, 2024.
Can you choose the old tax regime if filing a belated ITR?
If you are filing ITR 1 or ITR 2, you have the option to choose the old tax regime (without filing Form 10-IEA), provided you file the ITR before the deadline."Taxpayers without business income (filing ITR 1 or ITR 2) can make this choice of opting for the old tax regime in the ITR itself. A separate form is not required for such non-business taxpayers. The option to compute taxes under the old regime must be exercised in Form 10-IEA (for business assesses) or in the ITR (for non-business assesses) before the due date for filing the ITR," says CA Deepak Chopra, Direct Tax committee Chairman, Karnataka State Chartered Accountants Association.
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This story originally appeared on: India Times - Author:Faqs of Insurances
