ITR Filing, Audit Report Deadline for FY 2023-24(AY 2024-25)

Income Tax Return Filing & Audit Report Deadlines for FY 2023-24 (AY 2024-25)

In order to ensure compliance with income tax law and avoid penalties, certain deadlines are essential. To properly fulfil these deadlines, Income tax taxpayers should prepare their financial accounts and Tax return well in advance. Here’s a summary of the Income Tax Return (ITR) filing due dates and audit report filing deadlines for various categories of taxpayers for the Financial Year (FY) 2023-24 (Assessment Year (AY) 2024-25):

1. Firms and Hindu Undivided Family :

• • Income Tax Return Filing Due Date: 31st July 2024

2. Businesses

Audit Cases (including Private Limited Companies, One Person Company, Limited Liability Partnership (LLP), and firms):

• • Income Tax Return Filing Due Date: 31st October 2024
  • Audit Report Filing Due Date: 30th September 2024

Non-Audit Cases (including Private Limited Companies, One Person Company, Limited Liability Partnership and firms):

• • Income Tax Return Filing Due Date: 31st July 2024

3. Association of Persons and Body of Individuals

• • Income Tax Return Filing Due Date: 31st July 2024

4. Individuals

• • Income Tax Return Filing Due Date: 31st July 2024

5. Trusts, Colleges, Political Parties

Audit Cases:

• • Income Tax Return Filing Due Date: 31st October 2024
  • Audit Report Filing Due Date: 30th September 2024

Non-Audit Cases:

• • Income Tax Return Filing Due Date: 31st July 2024

6. Report to be Filed Under Section 92E (International/Specified Domestic Transactions)

• • Income Tax Return Filing Due Date: 31st October 2024

7. Transfer Pricing Case

• • Income Tax Return Filing Due Date: 30th November 2024

8. Revised Return

• • Due Date: 31st December 2024

9. Belated/Late Return

• • Due Date: 31st December 2024

10. Opting to discard the Income tax Return: Discard Income tax Return(ITR)

Tax Department’s introduction of “Discard Income Tax Returns” option for unverified Original/Belated/Revised ITRs from AY 2023-24 is a significant development. By enabling the “Discard ITR” option, the Tax Dept aims to enhance user experience & streamline the process of ITR filing for taxpayers.

The “Discard Income Tax Returns” option allows taxpayers to retract unverified ITRs, treating them as if they were never filed. This feature provides flexibility for correcting errors or making changes to returns that have not yet been finalized. This update about the Income Tax Portal introducing a “Discard Income Tax Returns” option for unverified original/belated/revised Income Tax Returns (ITRs) starting from Assessment Year 2023-24 is crucial for taxpayers to be aware of.

• • Opting to discard the Income Tax Returns is akin to not filing the return at all. It allows taxpayers to retract their submitted returns that have not yet been verified.
  • Submission of New Income Tax Returns: After discarding the Income Tax Returns, taxpayers can submit a fresh return. However, it’s important to note that if the new return is filed after the due date, late fees and other associated consequences may apply.
  • Once the discard option is exercised, it cannot be reversed. Therefore, taxpayers should use this feature cautiously and only if necessary.
  • The discard feature is available until the ITR filing deadline, which is typically until December 31 following the end of the financial year. Timely action is advised to avoid any last-minute issues.
  • This update provides taxpayers with added flexibility and an opportunity to rectify any errors or omissions in their returns before the filing deadline, albeit with some limitations and considerations. Taxpayers should familiarize themselves with this new feature and use it judiciously as part of their tax compliance strategy.

What are the Consequences of Missing the Deadline for filing ITR in India?

• Missing the deadline for filing your Income Tax Return (ITR) in India can have various consequences, but it’s not an irreversible situation. Here’s a detailed overview of what happens if you miss the deadline, including potential penalties and subsequent steps you can take:

Consequences of Missing the Deadline

Late Filing Penalty:

• • Income exceeding Rs. 5 lakh: You may incur a penalty of up to Rs. 5,000.
  • Income below Rs. 5 lakh: The penalty is reduced to Rs. 1,000.
  • Income below the taxable limit: No penalty is levied if your income is below the taxable limit.
  • Interest on Tax Owed:

If you owe any tax, you will need to pay interest under Section 234A of the Income Tax Act. The interest is calculated at 1% per month or part of a month on the unpaid tax amount, starting from the due date until the date you file the return.

Delay in Refunds:

• • If you are due for a tax refund, it will be delayed until you file your return. Filing late can result in a longer wait time for receiving your refund.
  • Filing a Belated Return

Deadline for Belated Return: You can file a belated return by December 31st of the relevant assessment year. For instance, for the financial year 2023-24, the deadline to file a belated return is December 31st, 2024.

Penalties Still Apply: Even if you file a belated return, you will still be subject to the late filing penalties mentioned above.

Other Consequences for Not Filing at All

• Prosecution: The income tax department has the authority to initiate prosecution proceedings against you for not filing your ITR. This can lead to imprisonment for a term ranging from three months to seven years, along with a fine.
• Many banks and financial institutions require ITR filings for processing loan applications. Not having filed your ITR can complicate or delay loan approvals.
• Failure to file your ITR can prevent you from claiming certain tax benefits and exemptions, such as carrying forward and setting off losses against future income.
• If you have missed the deadline, file your ITR as soon as you can to minimize penalties and interest.

Kind attention taxpayers related to AIS