ITR Filing Deadline: Ensure you file your revised or belated tax returns by the December 31, 2024 deadline

ITR Filing Deadline: December 31, 2024, is the last date for submitting belated and revised income tax returns for FY 2023-24 (AY 2024-25). While different taxpayer categories have various filing deadlines, the final date for belated and revised returns remains the same. Many taxpayers are unaware of the consequences of missing this deadline.

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

If a belated return is not filed by December 31, 2024, there are specific penalties. According to Section 139(4) of the Income Tax Act, a penalty of Rs 5,000 will be imposed for belated returns, regardless of any outstanding tax dues. However, if the taxable income is below a certain threshold, a reduced penalty of Rs 1,000 applies. No penalty is charged for individuals whose income is below the Rs 3 lakh basic exemption limit.

Kinjal Bhuta, Secretary of the Bombay Chartered Accountants’ Society, explained to ET, “Filing a belated return is the last opportunity for taxpayers to claim refunds and certain losses. If a belated return is not submitted, individuals lose the chance to make these claims for that assessment year. Once the deadline for filing a belated return expires, only an updated return can be filed, and only if there is a tax liability. Furthermore, failure to file a belated return may result in increased interest and penalties if the Income Tax Department issues a notice.”

A key limitation for belated returns for FY 2023-24 is that taxpayers cannot opt for the old tax regime, as the new regime became the default option from April 1, 2023. As a result, belated returns must adhere to the new tax structure.

Additionally, the old tax regime offered several deductions and exemptions not available under the new system, which helped lower taxable income and reduce tax liabilities. The new regime, however, allows only two deductions: a standard deduction of Rs 50,000 for FY 2023-24 (AY 2024-25) and employer contributions to the NPS up to 10% of basic salary. Other benefits such as deductions under Sections 80C, 80D, and HRA exemptions are not applicable under the new tax regime.

ITR filing: What happens if you miss the revised return filing deadline of December 31, 2024?

When a taxpayer needs to correct errors in their original or belated returns, they must file a revised return. This allows them to fix mistakes like unreported income, unclaimed deductions, or missing bank account details.

Bhuta explains, “If the taxpayer misses the deadline to file a revised return, there is no alternative mechanism to amend the return for that assessment year or claim refunds or losses. While income tax laws permit filing an updated return, it cannot be done if the taxpayer has losses, is entitled to a larger refund, or if the updated return would reduce the tax liability compared to the original or belated return. There are other situations where an updated return cannot be filed. Therefore, if the revised return deadline is missed, the only option for claiming any additional credit or refund is during the assessment proceedings, but this could involve litigation.”

While taxpayers can file multiple revised returns, tax experts caution against frequent revisions, as this could lead to increased scrutiny from the Income Tax Department.

Bhuta clarifies, “According to Section 139(5) of the Income Tax Act, 1961, an ITR can be revised only up to three months before the end of the relevant assessment year or before the assessment is completed, whichever occurs first. A revised return can still be filed even after an intimation under Section 143(1) has been received. However, once the ITR is processed under a regular scrutiny assessment under Section 143(3), it can no longer be revised.”

For the financial year 2023-24 (AY 2024-25), taxpayers have until December 31, 2024, to submit their revised returns.