The financial year 2023-24 has ended, and the time to file your income tax returns (ITR) for Assessment Year (A.Y.) 2024-25 is in full swing. But what if you’ve missed the original deadline to file your returns? Don’t worry; there’s still hope! You can file your belated returns before December 31, 2024, and avoid major penalties or legal issues. Let’s take a closer look at what filing belated returns involves, the benefits of doing so, and how you can go about it.
What Are Belated Returns?
A belated return is simply an income tax return filed after the due date for the relevant assessment year. In India, the due date for filing the ITR is usually July 31 for individual taxpayers who are not required to undergo an audit. However, for the Assessment Year 2024-25, if you missed the deadline, you still have the option to file your returns up to December 31, 2024. This extended window allows taxpayers to stay compliant without facing much harsher consequences.
Why Should You File Belated Returns?
1.Avoid Penalties
The Income Tax Department imposes a late fee of up to ₹5,000 for belated returns, depending on the timing of the filing. The longer you delay, the higher the penalty. By filing before the extended deadline of December 31, 2024, you can limit these penalties and make sure you stay compliant without major financial setbacks.
2.Claim Refunds
If you are eligible for an income tax refund, filing a belated return is the only way to ensure you get it. While refunds are usually processed within a few months of filing the return, they can only be claimed by filing the return within the prescribed time limits. So, even if you’ve missed the original deadline, filing a belated return ensures you don’t lose out on the refund you’re entitled to.
3.Carry Forward Losses
Many taxpayers may have incurred capital gains losses or losses from business operations. Filing your return within the allowed time (even as a belated return) is crucial to carry forward these losses and offset them against future income. If you miss the deadline altogether, you lose this valuable opportunity.
4.Avoid Legal Consequences
Not filing your returns could lead to further legal action by the tax department. Filing belated returns ensures that you avoid additional scrutiny and penalties under Section 271F of the Income Tax Act, which can charge you up to ₹5,000 for non-filing.
5.Maintain Your Financial Health
Filing tax returns on time, even belatedly, is part of maintaining a good financial record. Banks and financial institutions often look at your tax returns when processing loans or credit applications. A clean, filed tax record works in your favor when you need to apply for loans or credit facilities.
What Happens If You Miss the December 31, 2024 Deadline?
If you fail to file the belated return by December 31, 2024, you can still file a “defective return” or potentially face legal consequences. However, the window to do so is extremely limited. Post-December 31, you may face more severe penalties, including:
•Interest under Sections 234A, 234B, and 234C
•Additional penalties under Section 271F
•The inability to carry forward losses
Final Thoughts
Filing your belated income tax return for A.Y. 2024-25 before the December 31, 2024, deadline is crucial to ensure that you avoid penalties, preserve your ability to carry forward losses, and claim any tax refunds due to you. Procrastination can cost you, so don’t delay any further! File your return now and stay compliant with the tax laws.
If you’re unsure about the filing process or need assistance, reaching out to us will ensure you get everything right and avoid unnecessary complications.
Remember, the deadline is just around the corner. Take action today and avoid the stress of last-minute filing!