ITR filing deadline: 5 consequences of not filing your income tax return today Let's examine five outcomes of failing to file ITR before the deadline
Today is the last date to file income tax return (ITR) for the financial year (FY) 2023-24. However, a belated return can be filed till December 31.#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;}
ET Guide to ITR
Made a mistake in your filed ITR? Check the revised ITR filing last date
How to file ITR after July 31 deadline?
What is the penalty for filing ITR after the July 31 deadline
According to section 139 (4) of the Income Tax Act, an income tax return (ITR) filed after the due date of July 31 is known as a belated return. Taxpayers who miss the deadline for filing a return can opt to file a belated return by December 31 of the relevant assessment year.
What happens if ITR is filed after the deadline
Not filing an ITR can have a number of consequences, like penal interest and late fees to possible jail time.Last date to file ITR: #IncomeTaxReturn trends as users report e-filing portal glitches; will the deadline extend?
If you file your return after the deadline but within the window for filing a belated return, you will be charged a late fee and interest.
Let us take a look at five consequences of not filing ITR before the deadline.
Late fee
One of the main consequences of filing your ITR after the deadline is that you will be charged a late filing fee. Under Section 234F, you will be charged a late fee of Rs 5,000 if you do not file your ITR by the deadline. The late costs, however, will only be charged up to Rs 1,000 if your yearly income is under Rs 5 lakh.
No penalty for missing ITR filing deadline of July 31, 2024 for these people
Interest Penalty
In accordance with Section 234A, you are responsible for paying interest on the unpaid tax amount at the rate of 1% per month if you fail to pay your taxes on time. Interest is computed from the time you file your tax return for the applicable fiscal year until the deadline.
Loss of Carry Forward Losses
Losses can be carried over to future years if the income tax return is filed before the deadline. These losses might be offset against your future earnings. You won't be able to carry over these losses, though, if the ITR is filed post the deadline.
If an individual files an income tax return after the expiry of the deadline, then he/she will not be able to carry forward the losses under the following heads:
a) Income from other sources
b) Income from capital gains
c) Income from business and profession including speculation business.
Delayed Refunds
If there is an income tax refund due, then tax refund will be payable only if the ITR is filed and verified.
Choosing tax regime
Individuals cannot opt for the new tax regime while filing belated ITR for AY 2024-25. The option to file ITR under the old tax regime will not be available from August 1, 2024, for FY 2023-24 (AY 2024-25) for those taxpayers for whom the deadline is July 31.
This will result in a higher tax burden under the new tax regime and the loss of the ability to claim deductions and exemptions under the previous tax system, assuming that the previous tax regime was advantageous for them from the beginning.
As per the current income tax laws, the new tax regime is the default tax regime. An individual taxpayer has an option to switch to the old tax regime provided the ITR is filed on or before the July 31 deadline.
Further, income taxpayers who want to file their income tax return under the old tax regime must file it on or before the deadline of July 31. This is because the option to file ITR under the old tax regime will not be available from August 1, 2024, for FY 2023-24 (AY 2024-25) for those taxpayers for whom the deadline is July 31. This will lead to the loss of the option to claim deductions and exemptions under the old tax regime as well as higher tax outgo in the new tax regime - presuming that the old tax regime was favourable for them to start with.
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ET Guide to ITR
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This story originally appeared on: India Times - Author:Faqs of Insurances
