For the assessment year 2024–25 (FY24), the deadline for filing an income tax return (ITR) is July 31. Ignoring this deadline might have negative effects on your financial planning and legal consequences.
Thus, one of the most important tasks for Indian taxpayers is to file their ITR on time. Meeting the deadline, though, isn’t always easy. To prevent these problems, it’s critical to comprehend the repercussions of missing the ITR filing date.
There are repercussions when deadlines are missed. Director of All India ITR Vikas Dahiya stated, “If you do not file your ITR by the deadline, you may be subject to a penalty under Section 234F of the Income Tax Act.
For various taxpayer categories, there are varying ITR filing deadlines. There are extended deadlines for certain categories.
“Enterprises and those mandated to undergo a tax audit must file by October 31 of each year. Cases involving transfer pricing: November 30 of the current year is the deadline for these lawsuits, according to sources.
What Happens If You Miss The ITR Deadline?
According to section 234A of the Income Tax Act, filing an income tax return beyond the deadline may incur financial penalties and interest charges, dependent on the length of the delay and the amount of tax owed.
A late charge is also levied by Section 234F and ranges from Rs 1,000 to Rs 5,000 depending on the taxpayer’s gross total income.
Moreover, carrying forward some kinds of losses is restricted when an Income Tax Return (ITR) is filed beyond the deadline. If a business or capital loss is reported after the deadline, it cannot be carried forward or deducted from future income (except losses associated with real estate).
Moreover, if the return is filed beyond the first deadline, the chance to claim specific deductions and exemptions may be lost. To minimize tax obligations and lower taxable income, these deductions are essential.
Tax authorities may scrutinize late filers more closely, which might result in audits and other inquiries. “It’s best to file a belated return to minimise potential penalties and interest charges even if you don’t owe any tax. For this reason, taxpayers must meet the ITR filing date to prevent further issues and potential legal consequences.
