As the financial year 2024-25 draws to a close, it’s time for Indian taxpayers to fulfill their yearly duty—filing their Income Tax Returns (ITR). If you’re looking to stay on track with the deadlines, penalties, and critical points for filing your ITR for Assessment Year (AY) 2024-25, this guide has you covered.
ITR Filing Deadline for AY 2024-25
The original deadline for filing ITR for individuals whose accounts are not audited was July 31, 2024. However, for those who missed this date, there is still a chance to file with some penalties:
– Belated Return: You can file a belated return by December 31, 2024 without additional penalties other than the late filing fee. For resident individuals, this deadline has been extended to January 15, 2025, giving taxpayers more time to comply.
– Revised Return: If you’ve already submitted your ITR but need to correct any errors, you can file a revised return by the same extended deadline, January 15, 2025.
Penalties for Late ITR Filing
Missing the ITR filing deadline comes with penalties:
– Penalty under Section 234F: A penalty of up to Rs 5,000 applies if you file after the due date. However, for individuals with a total income under Rs 5 lakh, this penalty is reduced to Rs 1,000.
– Interest: If you owe any taxes, you’ll incur interest of 1% per month (or part of the month) under Section 234A, until the tax is paid.
– Loss of Exemptions: Late filings can cause you to lose out on certain tax benefits and prevent you from carrying forward losses to offset future tax liabilities.
Why Timely Filing is Important
Filing your ITR on time is about more than just avoiding penalties:
– Faster Refunds: Timely filing can speed up your refund processing if you’re due for one.
– Carry Forward Losses: Only on-time filings allow you to carry forward losses from capital gains or business income to offset future taxes.
– Loan Processing: Financial institutions often require a recent ITR when applying for loans. Late filings can complicate this process.
– Legal Compliance: Timely filing ensures you stay in compliance with the Income Tax Department and avoid potential notices or legal issues.
Dealing with Technical Issues in Filing
In 2024, many taxpayers faced technical glitches with the Income Tax e-filing portal, such as slow page loading or OTP verification issues. While there were requests for an extension, the general deadline for filing remained July 31, 2024. However, the extension for belated and revised returns acknowledges these challenges and provides taxpayers a chance to file without extra penalties.
New Changes for AY 2025-26
Here are a few things to keep in mind when filing your ITR for AY 2025-26:
– Tax Regime Choices: Taxpayers must select between the old and new tax regimes at the time of filing. If you’re not a business owner, this choice is mandatory. Businesses face stricter rules regarding tax regime changes.
– Increased Compliance: With the introduction of new provisions like Section 43B(h) for payments to MSMEs, taxpayers need to be diligent about ensuring their filings are correct and timely.
Conclusion
The extension of the belated and revised return deadlines gives taxpayers more time to meet their filing obligations. However, it’s crucial to understand that early filing not only helps avoid penalties but also contributes to better financial management. As tax laws continue to evolve, staying updated through official resources, such as the Income Tax Department’s website, or consulting with tax professionals will ensure you’re on the right track.
To file your ITR, visit the official Income Tax e-filing portal. Remember, compliance isn’t just about avoiding penalties—it’s about securing your financial future and contributing to the nation’s growth.
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