As the countdown to Income Tax Return (ITR) filing for the financial year 2023-2024 approaches faster with just few days remaining, taxpayers of the country need to be aware of the potential consequences of missing the last date and the implications of the late ITR filing.
Here is the breakdown of everything you need to know to ensure you meet the deadline and avoid any penalties.
Key Deadlines and penalties of Late filing
The official deadline or the last date for submitting the ITR for FY23-24 is July 31, 2024.
In case if you miss this deadline, you will still have the option to file a belated return by December 31, 2024 but it is better to file it now than late as there are many implications to missing the initial deadline.
For instance, if you are filing the ITR after the July 31 deadline, you will have to give a late filing fee subjected under section 234F of the Income Tax Act and moreover, the procrastination of it can be up to Rs 5,000. But in the cases such as income not exceeding Rs 5 lakh, the fee is reduced to Rs 1,000.
The official deadline or the last date for submitting the ITR for FY23-24 is July 31, 2024 | Representative Image
In addition to this, there will also be penal interest on any tax payable at a rate of 1 per cent staring from April 1 until the date you file your return.
Automatic Assignment to the New Tax Regime
The other major implication of filing a belated return is the automatic assignment to the new tax regime which was introduced in 2020.
The new regime offers lower tax rates but limits deductions and exemptions and in case if you file late, you forfeit the option to choose the old regime.
Apart from these, there are also certain other repercussion which include loss of carry forward losses, delayed refunds and so on.
So, filing your ITR before the deadline can save your unnecessary penalties and complications.
