Deadline for Filing Belated and Revised ITR for FY23-24 Ends on December 31

The deadline to file belated and revised income tax returns (ITRs) for the financial year 2023-24 (assessment year 2024-25) is December 31, 2024. This will be applicable to all taxpayers, as per income tax regulations.

Belated Returns and Penalties

Under Section 139 (4) of the Income Tax Act, a late return can be filed but in case the original due date is missed. However, this has a penalty imposed while filing late: Rs 5,000 can be charged as a penalty where taxable income exceeds Rs 5 lakh, and Rs 1,000 in other cases.

No Late Fees is levied on the taxpayer whose income is below the basic exemption limit of Rs 3 lakh and he is filing the ITR on Voluntary Basis.

Updated Income Tax Return (ITR-U)

If the taxpayers do not file a belated return by December 31, they lose claims for refund, deductions, or tax credits for the assessment year. After December 31, an updated return (IT-U) can still be filed, but additional conditions apply, and possible tax liability may be incurred. Higher interest charges or penalties may also accrue in case the notice is raised by the tax department.

Impact on Tax Regime Choices

Taxpayers filing a belated return for FY 2023-24 must follow the new tax regime, which has been the default system since April 1, 2023. Under this rule, taxpayers cannot choose the old tax regime, which offered deductions and exemptions like Section 80C and House Rent Allowance (HRA).

The new tax regime allows fewer deductions, which may affect those who earlier relied on the benefits of the old system to reduce their taxable income. Only the following benefits are available in the new regime:

1. Standard deduction of Rs 50,000.

2. Employer contributions to the National Pension System (NPS) up to 10% of the basic salary.

Revised Returns for Corrections

The option of revised return will be open to the taxpayers who committed an error in the original or belated ITR up to 31 December, 2024. The return could rectify mistakes related to the failure to declare certain incomes, overlooked deductions, and details of wrong calculations. This return helps avoid all issues associated with complications and problems from tax departments regarding penalty and notices.

Filing the revised return helps one maintain an error-free declaration for accurate reporting. Taxpayers should file their belated or revised returns before 31 December to avoid attracting penalties or losing tax benefits. Those filing belated returns must follow the new tax regime and carefully scrutinize their returns to assure accuracy and compliance with rules.