December 31, 2024 ITR filing deadline: Income tax laws allow individual to file belated and revised return

ITR filing: December 31, 2024, is last date to file belated, revised return for FY 2023-24, what happens if you miss this deadline A belated return is filed if an individual has missed the last date to file original ITR. On the other hand, revised return is filed if an individual has made a mistake in the original and belated returns. Know what happens if belated or revised return is not filed by December 31, 2024 for FY 2023-24

December 31, 2024, is the last date to file belated and revised income tax returns for FY 2023-24 (AY 2024-25). According to income tax laws, different categories of taxpayers have different last dates to file ITRs. However, the last date to file a belated return and revised return is the same for all taxpayers. Not many taxpayers are aware of the consequences they will face if they miss the December 31, 2024, deadline to file the belated and revised returns for FY 2023-24.

What happens if you miss the belated return filing deadline on December 31, 2024?

A taxpayer files the belated return if they have missed the deadline to file the original return. The belated return is filed under Section 139(4) of the Income Tax Act. A penalty of Rs 5,000 is applicable at the time of filing a belated return. This penalty is payable even if there is no pending tax payable amount. If the taxable income does not exceed, then penalty of Rs 1,000 will be applicable. However, no penalty will be applicable on belated return if the taxable income does not exceed the basic exemption limit of Rs 3 lakh.

Kinjal Bhuta, Secretary of Bombay Chartered Accountants' Society, says, "Belated return is the last chance for the taxpayer to file the ITR and claim refunds and certain losses. If the belated return is not filed, the person misses those claims and credits for that assessment year. After the expiry of the filing of the belated return, only an updated return can be filed subject to the condition that there is a tax liability payable. Further, if no belated return is filed, the taxpayer shall have to face increased interests and penalties on the tax liabilities if a notice is sent by the income tax department."

One of the major disadvantages of filing belated return for FY 2023-24 is that a taxpayer cannot opt for the old tax regime. This is because the new tax regime is the default tax regime since April 1, 2023 (FY 2023-24). The belated return for FY 2023-24 will be filed under the new tax regime.

The old tax regime allows a taxpayer to avail of various deductions and tax exemptions that are not available under the new tax regime. These deductions and tax exemptions help the taxpayer to lower their taxable income and, thereby, income tax liability.

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There are only two deductions available under the new tax regime. These are standard deduction of Rs 50,000 for FY 2023-24 (AY 2024-25) and employer's contribution to National Pension System (NPS) up to 10% of the basic salary for FY 2023-24 (AY 2024-25). No other deduction such as Section 80C, 80D, HRA tax exemption etc. can be claimed under the new tax regime.

What happens if you miss the revised return filing deadline on December 31, 2024?
A revised return is filed by the taxpayer to correct the mistakes made in the original and belated returns. Any mistake can be corrected in the ITR filed. A revised return can be filed if the taxpayer has failed to report income, forgotten to claim the deduction, is missing reporting bank accounts, etc.

Bhuta says, "If the taxpayer misses the deadline to file a revised return, there is no other mechanism to file a revised return again for that assessment year and to claim refunds or losses. The income tax laws allow the filing of an updated return. However, the updated return cannot be filed in cases where the taxpayer has losses, it results in an increased refund, or the tax return has an effect of reducing the total tax liability as filed in the original or belated return. There are many other criteria as to when an updated return cannot be filed. So, if a taxpayer misses the revised return deadline, the only way in which any additional claim or credit can be requested is during the assessment proceedings. However, that is subject to litigation."

There is no limit on the number of times a revised return can be filed. However, experts ask taxpayers to refrain from unnecessarily filing revised returns. Unnecessary filing of revised return can lead to ITR coming under Scrutiny from the Income Tax Department.

Many taxpayers are curious if the revised return can be filed if the intimation notice has been sent by the income tax department after processing the ITR. Bhuta says, "As per section 139(5) of the Income Tax Act, 1961, ITR can be revised only before three months before the end of the relevant assessment year or before the completion of assessment, whichever event happens first. The ITR can be revised even after an intimation has been received under section 143(1). However, once the ITR is processed under a regular scrutiny assessment under section 143(3), the same cannot be revised."

A revised return can be filed any time till December 31, 2024 for FY 2023-24 (AY 2024-25).

This story originally appeared on: India Times - Author:Faqs of Insurances