The deadline for filing an Income Tax Return (ITR) for the Financial Year 2023-24 was July 31, 2024. Since the Income Tax Department did not extend this deadline, taxpayers who missed it are now required to pay penalties for filing a belated return, which can be done until December 31, 2024. Missing the ITR deadline can lead to fines and potentially trigger audits from the IT Department.
According to section 139 (4) of the Income Tax Act, an ITR filed after the July 31 deadline is considered a belated return. Here are the penalties for filing a belated ITR based on income levels:
- Taxpayers with a net taxable income above ₹5 lakhs for FY24 face a penalty of up to ₹5,000.
- Taxpayers with a net taxable income below ₹5 lakhs for FY24 face a penalty limited to ₹1,000.
Also read: Can You Revise Your ITR after Receiving a Notice from Income Tax Department?
Apart from penalties, filing a belated ITR has two significant disadvantages:
- New Tax Regime: Taxpayers lose the option to choose between the new and old tax regimes and are automatically shifted to the new regime. The new tax regime offers limited deductions and exemptions compared to the old one.
- Carry Forward of Losses: Taxpayers cannot carry forward losses from investments like stocks, mutual funds, and properties, resulting in higher future taxes.
Individuals whose taxable income is below the basic exemption limit can still file their ITR to claim a refund and are exempt from penalties for late filing.