Today is Last Day for Corporates & Audited Individuals to File ITR: Know More

Today, November 15, 2024 marks the final day for certain taxpayers, including corporate entities and individuals subject to audit, to file their Income Tax Returns (ITR) for the financial year. Missing this critical deadline can result in penalties, interest charges, and loss of financial benefits.

Who is Mandated to File ITR by Tomorrow?

The November 15 deadline specifically applies to the following categories of taxpayers:

Corporate Entities: This deadline applies to both Indian companies and foreign entities with a taxable presence in India.

Audited Taxpayers: This includes individuals and entities whose accounts require an audit under the Income Tax Act or other applicable laws. Partners in firms requiring an audit, as well as their spouses (where Section 5A of the Income Tax Act applies), must also file their ITR by this deadline.

Importance of Submitting the Tax Audit Report

Taxpayers requiring an audit must submit their tax audit report before filing the ITR. This report is essential as it includes critical details such as the date of submission and the acknowledgment number, which must be included in the return. Filing the ITR without these details is not permitted, so it is crucial to complete the audit before submitting the return.

Implications of Missing the Deadline

If a taxpayer misses the November 15, 2024 deadline, they still have the option to file a belated return by December 31, 2024. However, late submissions come with the following penalties:

1. Late Filing Fees: Under Section 234F, taxpayers may be charged fees ranging from Rs 1,000 to Rs 5,000, depending on their total income.

2. Interest on Unpaid Taxes: Sections 234A and 234B impose interest charges on any unpaid tax amounts.

3. Loss of Carry Forward Benefit: Taxpayers who fail to file by the deadline forfeit the ability to carry forward certain losses incurred during the current financial year.

Additional Penalties for Delayed Tax Audit Reports

Failing to submit the tax audit report on time can result in further penalties. Taxpayers may face a penalty of Rs 1.5 lakh or 0.5% of total sales or turnover, whichever is lower. Since the ITR relies on information from the tax audit report, completing the audit promptly is crucial to avoid these penalties.

The original deadline for ITR submission by audited individuals and corporate entities was set for October 31, 2024, but it was extended to November 15, 2024. No further extensions are anticipated, so eligible taxpayers should file by tomorrow to avoid additional complications.

Taxpayers involved in international or specified domestic transactions have until November 30, 2024, to file their ITR. They must first submit the transfer pricing audit report, Form 3CEB, which was due on October 31, 2024. Non-compliance with the Form 3CEB submission deadline can attract substantial penalties, including fines of Rs 1 lakh or 2% of the transaction value for international transactions involving related parties.

Corporate entities, audited individuals, and partners in audited firms are urged to file their ITR by November 15, 2024, to avoid late filing penalties and loss of loss carry-forward benefits. Eligible taxpayers should act promptly to prevent unnecessary financial consequences.