The deadline for filing the Income Tax Return (ITR) for the Financial Year 2023-24 was July 31. Since the Income Tax Department did not extend this deadline, those who missed it must pay additional penalties when filing a belated return by December 31, 2024.
Penalties for Missing the ITR Deadline:
- For taxpayers with net taxable income above ₹5 lakhs: The penalty for filing a belated return can be up to ₹5,000.
- For taxpayers with net taxable income below ₹5 lakhs: The penalty is limited to ₹1,000.
Consequences of Missing the ITR Deadline:
In addition to facing penalties, taxpayers who file their ITRs late will lose certain benefits and privileges:
- Choice of Tax Regime: Taxpayers can choose between the new and old tax regimes. Missing the deadline automatically shifts them to the new tax regime, which does not offer the same deductions and exemptions as the old regime.
- Carry Forward of Losses: Late filers cannot carry forward losses from investments in stocks, mutual funds, or properties, which could result in higher taxes in the future.
Exemption from Penalties:
Individuals whose taxable income is below the basic exemption limit can still file their ITR to claim a refund without facing penalties for late filing.
