The end of the calendar year is fast approaching, and for taxpayers in India, December 31, 2024, is a crucial deadline for various income tax obligations. While different taxpayer categories have specific due dates for filing their Income Tax Returns (ITRs), the final date for belated and revised returns remains consistent. Missing these deadlines can lead to penalties, loss of benefits, and other financial repercussions. Here’s a detailed guide to the critical tax deadlines and their implications.
Key Deadlines for Taxpayers in FY 2023-24
- July 31, 2024: Deadline for Original ITR Filing
- Who it applies to: Salaried individuals, senior citizens, and taxpayers without audited accounts.
- Implication of missing the deadline: Late filing penalties under Section 139(4) and loss of the option to choose the Old Tax Regime for the fiscal year.
- October 31, 2024: Filing for Audited Accounts
- Who it applies to: Businesses and professionals requiring audits under the Income Tax Act.
- Relevance: Ensures compliance with audit obligations, critical for corporate taxpayers and high-income professionals.
- November 30, 2024: Transfer Pricing Report Submission
- Who it applies to: Taxpayers involved in international transactions or specified domestic transactions requiring transfer pricing audits.
- Why it matters: Failure to meet this deadline can result in penalties for non-compliance with transfer pricing regulations.
- December 31, 2024: Belated and Revised Returns
- Who it applies to: All taxpayers who missed earlier deadlines or need to correct filed returns.
- Consequences of missing this deadline:
- Inability to claim refunds or rectify errors in previous filings.
- Penalties and interest charges on unpaid taxes.
- Forfeiture of loss carry-forward benefits for business or capital losses.
Filing Belated Returns: What You Need to Know
A belated return is filed after the original due date but before December 31, 2024. Taxpayers who fail to file their returns by the due date must pay a penalty:
- ₹5,000 penalty under Section 234F for late filing.
- ₹1,000 penalty for those with taxable income below ₹5,00,000.
- No penalty for individuals earning below the basic exemption limit (₹3,00,000 for individuals below 60 years).
Additionally, filing a late return under the Old Tax Regime is no longer allowed. As of April 1, 2023, the New Tax Regime is the default system for all filings.
Key Features of the New Tax Regime
The New Tax Regime offers simplified taxation but with limited deductions:
- Allowed deductions:
- Standard deduction of ₹50,000.
- Employer contributions to the National Pension System (NPS) up to 10% of basic salary.
- Unavailable deductions:
- Section 80C investments (e.g., LIC, PPF, ELSS).
- Section 80D (health insurance premiums).
- HRA exemptions and other traditional allowances.
Revised ITRs: Correcting Errors
Taxpayers can file revised returns to correct errors, omissions, or inaccuracies in their original filings. This must also be completed by December 31, 2024. Common errors include:
- Misreporting income.
- Missing deductions or exemptions.
- Omitting foreign income or bank accounts.
Failure to file a revised return by the deadline results in:
- Loss of the opportunity to amend the return.
- Permanent loss of refunds or loss-offset benefits.
Reporting Foreign Income and Assets
Taxpayers with foreign assets or income must disclose these details in their returns to avoid penalties under the Black Money Act. Foreign assets include:
- Overseas bank accounts.
- Immovable property.
- Equity and debt interests in foreign businesses.
- Financial interests in foreign entities.
- Trusts where the taxpayer is a beneficiary, settlor, or trustee.
The Foreign Asset (FA) Schedule in ITR filings must be completed even if:
- The taxpayer’s income is below the taxable limit.
- The foreign assets were acquired from disclosed sources.
Take Advantage of the Vivad Se Vishwas Scheme
The Direct Tax Vivad Se Vishwas Scheme 2024 offers an opportunity to resolve pending tax disputes by paying reduced disputed tax amounts.
- Taxpayers filing by December 31, 2024, must pay 100% of the disputed tax.
- Post this date, an additional 10% penalty applies.
Conclusion
December 31, 2024, is a critical date for Indian taxpayers. Whether it’s filing a belated or revised return, reporting foreign assets, or settling disputes under the Vivad Se Vishwas Scheme, acting before the deadline can save you money, time, and legal hassles. Ensure you comply with these deadlines to avoid penalties and safeguard your financial interests.
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