What happens if you miss ITR filing deadline? Explained here
What's the story
The Income Tax Department has not extended the deadline for filing income tax returns (ITRs) for the fiscal year 2023-24, which was set for July 31.
Despite this, taxpayers who missed the deadline still have an opportunity to submit their ITRs by paying a late fee and filing a belated return.
The final date to file a belated return is December 31, 2024.
Fee structure
Late filing fees and penalties for belated ITR
The penalty for late filing is ₹5,000 if the return is submitted after the due date under section 139(1).
However, this fee is reduced to ₹1,000 if the total income of an assessee does not exceed ₹5 lakh.
In addition to these fees, taxpayers are also liable to pay interest on any unpaid taxes from the original due date until the full amount is settled.
Impact assessment
Consequences of missing the ITR deadline
Missing the July 31 deadline also implies that certain losses cannot be carried forward to future years, with only losses from house property being an exception.
Under Section 276CC of the Income Tax Act, if the amount of tax payable or evaded exceeds ₹25,000, penalties for late filing can include imprisonment ranging from six months to seven years along with a fine.
Department response
Income Tax Department's action on delayed or non-filing ITR
The Income Tax Department may issue legal notices or initiate scrutiny proceedings for delayed or non-filing of ITR.
Filing your ITR on time can minimize the chances of being subjected to such inquiries, saving you from potential legal consequences.
For those who missed the deadline, penalties are based on their income level with different rates applicable for incomes above and below ₹5 lakh.