Missed the ITR Deadline? File Your Belated or Revised Return Before Dec 31, 2024: All You Need to Know

For taxpayers who missed the original deadline to file their Income Tax Return (ITR) for FY 2023-24 (AY 2024-25), the clock is ticking. The final date to submit belated or revised ITRs is 31st December 2024. This deadline is applicable to all taxpayers, irrespective of their category, as mandated by the Income Tax Act.

Filing a Belated Return: What It Means

A belated return is your second chance to fulfil tax obligations if you missed the original deadline. Filed under Section 139(4) of the Income Tax Act, it comes with certain penalties:

• ₹5,000 for taxable incomes above ₹5 lakh.
• ₹1,000 for taxable incomes below ₹5 lakh.

However, no penalty applies if your income is within the basic exemption limit of ₹3 lakh.

Consequences of Missing the Belated Return Deadline:

Failing to meet the 31st December deadline may result in:

1. Loss of refunds: You forfeit claims for refunds or tax credits.
2. Forfeited deductions: Missed deductions under various sections of the Income Tax Act.
3. Increased liabilities: Higher interest and penalties in case of tax notices.

Filing After December 31: The Updated Return

If you miss the belated return deadline, you can file an updated return under specific conditions. However, this process involves:

• Higher tax liabilities.
• Additional penalties.
  It’s advisable to avoid such delays to minimise complications.

Impact on Tax Regime Options

From April 1, 2023, the new tax regime became the default system for all taxpayers. Filing a belated return for FY 2023-24 binds you to this regime, limiting your options.

Key Deductions Under the New Tax Regime:

• Standard deduction: ₹50,000.
• Employer contributions to NPS: Up to 10% of basic salary.

What Changes with the New Regime?

Unlike the old tax regime, which allowed exemptions like Section 80C deductions and HRA exemptions, the new system offers fewer tax-saving avenues. This shift could impact taxpayers accustomed to leveraging these benefits to reduce their taxable income.

Correcting Errors with a Revised Return

Mistakes happen, but the Income Tax Act provides a remedy through revised returns, allowing taxpayers to rectify:

• Unreported income.
• Missed deductions.
• Incorrect bank account details.

Filing a revised return not only ensures compliance but also reduces the risk of future disputes or penalties.

Final Thoughts

The December 31, 2024 deadline is a critical checkpoint for all taxpayers. Filing within this window helps avoid penalties and ensures proper compliance with income tax laws. Accurate filing, whether belated or revised, safeguards your financial interests and prevents future complications.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.