ITR AY25 deadline: Check last date & penalty for late income tax returns
ITR AY25 deadline: Check last date & penalty for late income tax returns
The last date for filing an income tax return (ITR) for the assessment year 2024-25 (FY24) is July 31. Missing this deadline could have legal consequences and affect your financial planning.
Hence, filing your ITR on time is a crucial duty for taxpayers in India.However, meeting the deadline can be challenging. It is important to understand the consequences of missing the ITR filing deadline to avoid these issues.
"Missing deadlines can lead to consequences. If you fail to file your ITR by the designated date, you might be liable for a penalty under Section 234F of the Income Tax Act," said Vikas Dahiya, Director at All India ITR.
The deadline for filing ITR varies for different types of taxpayers. Specific categories have extended deadlines.
"Companies and those who are required to get a tax audit done: These require filing by October 31 of the AY. Transfer Pricing Cases: The deadline for these cases is November 30 of the AY," said Ritika Nayyar, Partner at Singhania & Co.
Penalties for missing the ITR deadline
Filing an income tax return after the due date may result in financial penalties and interest charges as per section 234A of the Income Tax Act, depending on the delay and tax liability.
Additionally, Section 234F imposes a late fee, which varies from Rs 1,000 to Rs 5,000 based on the taxpayer's gross total income.
Furthermore, filing an Income Tax Return (ITR) late restricts the ability to carry forward specific types of losses. Business and capital losses, except those related to house property, cannot be carried forward or offset against future income if the return is submitted after the due date.
"Moreover, the opportunity to claim certain deductions and exemptions may be forfeited if the return is filed after the original deadline. These deductions are crucial for reducing taxable income and optimising tax liabilities," added Nayyar.
Late filers might also face increased scrutiny from tax authorities, potentially leading to audits and further enquiries. "It's best to file a belated return to minimise potential penalties and interest charges even if you don't owe any tax," advised Dahiya.
Hence, it is crucial that taxpayers do not default on the ITR filing deadline to avoid further complications and legal repercussions.
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