Missed filing ITR in July? Check last date to file tax returns or get penalised for Rs....

The clock is ticking for taxpayers to file their belated Income Tax Returns (ITR) for the financial year 2023-24 (assessment year 2024-25). The last date for submitting a belated ITR is December 31, for which failure to file in time will result in an increased penalty and the loss of tax-related benefits.

Understanding belated ITR filing

Taxpayers who could not submit their ITR on time within the July 31 deadline can still do so under the belated ITR provision by the end of December 31. Section 234F of the Income Tax Act mentions this. It goes with a late fee charge, though:

1. Rs 5,000 for most.
2. Rs 1,000 for those with total income below Rs 5 lakh.

What if December 31 is not met?

If one fails to file by December 31, then the taxpayer has an extended window till March 31, 2025. However, penalties increase, and additional drawbacks arise:

Higher penalties
A late fee of Rs 10,000 applies after December 31, along with a monthly interest of 1% under Section 234A on unpaid taxes, effective from August 1.

Loss of tax benefits
Deductions and exemptions under the old tax regime, such as Sections 80C and 80D, become unavailable to late filers.

Restriction on loss carry forward
Taxpayers lose the ability to carry forward capital losses to offset future gains.

Steps to file belated ITR online
Filing a belated ITR is straightforward via the Income Tax Department's e-filing portal:

Visit https://www.incometax.gov.in.

1. Log in with your PAN credentials.
2. Select the appropriate ITR form for assessment year 2024-25.
3. Fill in the required details and claim eligible deductions.
4. Pay the late fee applicable (Rs 5,000 or Rs 1,000).
5. Submit and validate the form through Aadhaar OTP or other modes.

Important Considerations

Default Tax regime
The new tax regime is the default for FY24. Taxpayers filing belated returns under this regime cannot claim the deductions and exemptions available under the old framework.

Interest on outstanding taxes

Settling tax liabilities accrue 1% interest for every month in delay. A timely response may prevent heavy penalties and potential loss of some benefits, which means one needs to settle their account by the December 31 deadline.