The Central Board of Direct Taxes (CBDT) has extended the deadline for filing belated and revised Income Tax Returns (ITRs) for the Assessment Year (AY) 2024-25 to January 15, 2025, offering relief to taxpayers who missed the original deadline or need to revise their returns. This extension replaces the earlier deadline of December 31, 2024.
The extension allows taxpayers additional time to ensure accuracy in their filings, but late filing penalties and other implications remain applicable. Here’s a detailed overview of the new deadline, penalties, and filing options.
Penalties for Filing Belated Returns
Filing a belated ITR under Section 139(4) of the Income Tax Act incurs penalties, based on the taxpayer’s income:
| Income Level | Penalty Amount |
|---|---|
| Income above the basic exemption limit (₹3 lakh) | ₹5,000 |
| Income below ₹5 lakh | ₹1,000 |
| Income below the basic exemption limit (₹3 lakh) | No penalty |
These penalties apply even if there is no outstanding tax liability. Taxpayers are encouraged to file their returns promptly to avoid additional financial burdens.
Differences Between Belated and Revised Returns
- Belated Returns:
- Filed after the original deadline (July 31, 2024) but within the extended deadline (now January 15, 2025).
- Penalties apply for late submission.
- Taxpayers cannot opt for the old tax regime when filing belated returns.
- Revised Returns:
- Filed to correct errors or omissions in previously submitted ITRs.
- No penalties apply for filing revised returns.
- Taxpayers can revise their returns multiple times until the new deadline.
Key Implications for Taxpayers
1. Impact of the New Tax Regime
The new tax regime, effective from April 1, 2023, is now the default system for all taxpayers. Belated returns filed under this regime offer limited deductions, including:
- Standard Deduction: ₹50,000 for salaried individuals.
- Employer NPS Contribution: Up to 10% of basic salary.
Deductions available under the old tax regime, such as those under Sections 80C, 80D, and HRA exemptions, are not applicable under the new tax regime.
2. Consequences of Missing the January 15 Deadline
Failure to file a belated return by January 15, 2025, can result in:
- Higher penalties.
- Inability to carry forward losses from previous financial years.
- Loss of eligibility for tax-saving deductions and exemptions.
Taxpayers who fail to meet the extended deadline risk non-compliance penalties and increased scrutiny from the Income Tax Department.
Filing Revised Returns
Revised returns allow taxpayers to correct inaccuracies in previously filed ITRs, such as:
- Missing income sources.
- Overlooked deductions.
- Incorrect tax calculations.
Key points to remember:
- Deadline: Revised returns can be filed until January 15, 2025.
- Multiple Revisions: Taxpayers can revise their returns multiple times if needed.
- Scrutiny Exemptions: Revised returns cannot be submitted once the ITR undergoes a regular scrutiny assessment under Section 143(3) of the Income Tax Act.
CBDT Notification Details
The CBDT extended the deadline under Section 119 of the Income Tax Act through a circular dated December 31, 2024. The notification applies to both belated and revised returns for AY 2024-25, specifically benefiting resident individuals.
This extension follows the introduction of procedural hurdles earlier in the year, prompting a need for additional time to ensure compliance and accuracy in tax filings.
Best Practices for Taxpayers
- File Promptly: Avoid waiting until the last minute to file returns to reduce the risk of errors or penalties.
- Opt for Professional Assistance: Consult a Chartered Accountant to ensure accurate filings and compliance with the latest tax laws.
- Check for Errors: Double-check income disclosures, deductions, and tax calculations before submitting revised returns.
- Avoid Excessive Revisions: While revisions are permitted, frequent corrections may attract scrutiny from the Income Tax Department.
Conclusion
The extended deadline for filing belated and revised ITRs offers taxpayers a chance to correct their filings and comply with tax laws without further delays. While penalties apply for late submissions, taxpayers should leverage this additional time to ensure accuracy and avoid long-term financial consequences.
Disclaimer: This article is for informational purposes only. Taxpayers are advised to consult a qualified tax advisor for personalized guidance based on their financial circumstances.
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