For individual taxpayers whose accounts do not need to be audited, the last date to file income tax returns (ITRs) for FY 2023–24 (AY 2024–25) is July 31, 2024.
Individuals who miss this date will have to pay the penalty for late filing of an Income Tax Return (ITR). An ITR filed after the last date is called a belated ITR.
As of July 31, 2024, the Income Tax Department has reported that 7 crore ITRs have been filed. They are urging those who have not yet filed their tax returns to do so before tonight's deadline.
"More than 7 crore ITRs have been filed so far (31st July), out of which over 50 lakh ITRs have been filed today till 7 pm! To assist taxpayers for ITR filing, tax payment and other related services, our helpdesk is functioning on a 24x7 basis, and we are providing support through calls, live chats, WebEx sessions & Twitter/X. We extend our gratitude to taxpayers and tax professionals for helping us reach this milestone, and urge all those who haven't filed ITR for AY 2024-25, to file their ITR," stated the tax department on its social media account on X.
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Penalty for late filing of ITR
Under Section 234F of the Income Tax Act, 1961, a penalty of up to Rs 5,000 is levied for filing a belated ITR. For small taxpayers, the penalty amount is restricted to Rs 1,000 if the taxable income does not exceed Rs 5 lakh. Note that the penalty applies even when a belated ITR shows zero tax payable. A belated ITR can only be submitted and confirmed if the challan information for paying the late filing fee are included in the ITR form.
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According to income tax laws, taxpayers who satisfy conditions for mandatory ITR filing as per Seventh proviso of Section 139(1) of the Income Tax Act are as follows:
a) Spent Rs 2 lakh or more (either in single transaction or on aggregate basis) for himself or any other person for travel to a foreign country.
b) Paid Rs 1 lakh or more (either in a single transaction or on aggregate basis) as electricity bill during the financial year
c) Deposited Rs 1 crore or more in one or more current accounts either in a single transaction or on aggregate basis.
d) Any other prescribed conditions
Penal interest on tax payable
In addition to the penalty, an individual must pay penal interest on the pending tax payable when filing a belated ITR.
These taxpayers must mandatorily pay penalty
As per income tax laws, late filing fee/penalty applies if taxpayers miss the ITR filing deadline.
1. Income exceeds basic exemption limit: If the taxpayer's taxable income exceeds the basic exemption limit, a penalty will be levied for filing a belated ITR. The basic exemption limit depends on the chosen tax regime. The default tax regime is the new tax regime, where income up to Rs 3 lakh is exempted from tax for all taxpayers, regardless of their age.
On the other hand, the basic exemption limit under the old tax regime depended on an individual's age.
2. Satisfying conditions under Section 139(1) of the Income-tax Act: Even if a taxpayer's taxable income does not exceed the basic exemption limit, they may still need to file their tax return if they meet certain conditions specified in Section 139(1) of the Income-tax Act. In such cases, filing the return late can result in penalties as per the income tax laws.
According to income tax laws, taxpayers who satisfy conditions for mandatory ITR filing as per Seventh proviso of Section 139(1) of the Income Tax Act are as follows:
a) Spent Rs 2 lakh or more (either in single transaction or on aggregate basis) for himself or any other person for travel to a foreign country.
b) Paid Rs 1 lakh or more (either in a single transaction or on aggregate basis) as electricity bill during the financial year
c) Deposited Rs 1 crore or more in one or more current accounts either in a single transaction or on aggregate basis.
d) Any other prescribed conditions
How to file ITR after July 31 deadline?
3. Holding foreign assets: Resident individuals who invest in foreign assets, such as equity shares of foreign companies or earn rental income from a house abroad, are mandated to file an ITR, even if their taxable income is below the basic exemption limit.
An income tax return (ITR) is required for a resident individual who is the beneficial owner of foreign assets, acts as a beneficiary, or has the authority to sign for any account located outside India. Late filing fees will be imposed if the ITR is submitted after the due date.
These taxpayers do not have to pay penalty for late filing of ITR
Individuals may need to submit an income tax return in order to receive an income tax refund. However, if their taxable income is below the basic exemption limit, they will not face any penalties for filing the return after the due date, according to income tax laws. When the taxable income does not surpass the basic exemption limit, it means that the gross taxable income is considered before any eligible deductions are taken into account.
How to file belated ITR
If you file your income tax return after the deadline has passed, the process is the same as filing before the deadline. However, when filling out the belated ITR form, you need to select section 139(4) instead of 139(1).
Section 139(1) is to be selected if you file your ITR on or before the expiry of the due date, which was July 31, 2024.
Disadvantages of filing belated ITR
Filing an income tax return (ITR) after the due date comes with several disadvantages. Apart from facing a penalty for late filing, individuals also lose out on certain benefits. For example, they cannot carry forward losses from capital gains, business income, and other sources (except for losses from house property). Additionally, they are not allowed to choose the new tax regime when filing a late ITR for Assessment Year 2024-25.
