ITR Filing Due Date Extended for FY 2023-24? Know the Truth

As the end of July approaches, many taxpayers are waiting for news on whether the Income Tax Return (ITR) filing deadline for the assessment year 2024-2025, also known as the financial year 2023-24, will be extended or not.

Facts

Individual taxpayers, Hindu Undivided Families (HUFs), and those whose accounts do not require auditing continue to have until July 31, 2024, to file ITRs. This ruling serves as a warning to taxpayers to complete their filings on time to avoid penalties and interest for late submissions.

Speculations and Rumours

Every year, as the deadline approaches, there is widespread discussion about whether it will be extended. This year was no exception, with many expecting an extension owing to a variety of concerns, including the rigorous filing requirements and technological difficulties encountered by certain taxpayers.

The CBDT has previously indicated that the deadline will not be extended this year. According to an official department announcement, “Taxpayers are advised to file their returns on or before the due date of July 31, 2024.”

Despite widespread reports and speculation, the Central Board of Direct Taxes (CBDT) has yet to confirm any deadline extensions.

Late Filing Penalties

Taxpayers who fail to file their taxes by the due date will be penalized and charged interest. Section 234F of the Income Tax Act imposes a late fine of INR 5,000 if the return is filed after the due date but before December 31, 2024.

The penalty for returns submitted after December 31, 2024 increases to INR 10,000. However, taxpayers having a total income of less than INR 5 lakhs face a maximum penalty of INR 1,000.

Importance of Filing of Timely

Filing ITRs on time is critical for a variety of reasons:

Avoid Penalties: Filing on time helps you avoid costly fines and interest.

Loan Approvals: Banks and financial institutions frequently request ITR receipts as proof of income when processing loan applications.

Claim Refunds: Taxpayers who file their taxes on time will receive their refunds from the Income Tax Department more swiftly.

Compliance: Keeping a clean tax compliance record is essential for future financial and legal transactions.

“We urge all those who have not yet filed their ITR for AY 2024-25 to do so as soon as possible to avoid a last-minute rush,” the Income Tax India Official Twitter handle tweeted earlier on the 26th.

Steps to File ITR for FY 2023-24

For those who have yet to file their returns, these are the measures to guarantee that the process runs smoothly:

Gather paperwork: Ensure that you have all required paperwork, such as Form 16, bank statements, and investment proofs.

Log into the IT Portal: Go to the Income Tax Department’s official e-filing portal.

Select the appropriate ITR Form: Choose the form that corresponds to your income group.

Fill in the details: Enter your personal, income, and deduction information accurately.

Verify and Submit: After reviewing the information for any problems, submit your return.

E-Verify: Finish the e-verification procedure with Aadhaar OTP, net banking, or another applicable means.

The deadline for filing income tax returns for the financial year 2023-2024 is July 31, 2024. Taxpayers are encouraged to finish their forms on time to avoid penalties and maintain compliance with the tax laws.

The deadline for individuals who have not yet submitted their returns is going to end by midnight today. Gather the necessary documents, log in to the e-filing system, and finish the process to avoid excessive penalties and have a smooth financial year ahead. The Central Board of Direct Taxes (CBDT) is the final authority on whether the ITR reporting deadline should be extended or not, and it has made no formal pronouncements about the extension as of yet.