Penalties for late or belated ITR filing for AY 2024-25
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What is the Income tax Penalties for late or belated ITR filing for AY 2024-25?
Taxpayer may please note there will be NO EXTENSION in ITR Filing this time. Kindly file your ITR up to 31 July 2024 for AY 2024-25 to avoid any late fee and penalty.
The last date for filing an ITR for the FY 2023-24 was July 31, & since the I T Dept did not extend this ITR deadline, Income Taxpayers who missed it will have to file a belated Income Tax Returns Return by Dec 31, 2024, incurring penalties. According to section 139 (4) of the Income Tax Act, an ITR filed after the July 31 deadline is considered a belated return. Failure to file on time can lead to penalties, fines, and potential audits from the IT department.
Steps by Step Process to File a Belated Income Tax Returns for AY 2024-2025:
- Log into your account on the Income tax dept e-filing portal.
- Navigate to Income tax dept ‘e-File’, choose ‘Income Tax Returns’, & select ‘File ITR Return’.
- Select AY 2024-25.
- Choose mode of filing as ‘Online’ at Income tax dept e-File portal.
- Click on the ‘Start New Filing’ button.
- Select the applicable status (e.g., individual, HUF, etc.).
- Select the applicable Income Tax Returns form.
- Go to the ‘Personal Information’ section and ensure all your personal details are correct.
- In the filing section, select section 139(4) for belated returns.
- Fill in all your income details under various source heads and proceed to make the tax payment.
What is Consequences when we missed ITR filing on timeline ?
When an individual misses the deadline for filing an Income Tax Return, they face several consequences in addition to penalties:
- Automatic Shift to the New Tax Regime: Taxpayers lose the option to choose between the new and old tax regimes. They are automatically shifted to the new tax regime, which lacks many deductions and offers limited exemptions compared to the old tax regime. You cannot file your Income Tax Returns under Old Regime of Taxation
- Limited Exemptions and Deductions: Under the new tax regime, taxpayers cannot claim various deductions and exemptions that were available under the old tax regime, potentially resulting in a higher tax liability.
- Filing a belated return also means you might miss out on certain benefits, such as carrying forward some losses. Losses, if any, cannot be carried forward if Income Tax Returns filed after due date under Section 139(1)
- For Assessment Year (AY) 2024-25, the penalties for late or belated ITR filing are as follows: Penalty Amount on Belated Income Tax Returns for AY 2024-2025 : Late Fee is payable if Income Tax Returns Filed after due date under Section 139(1)
- If your annual income is more than INR 5,00,000/- : Penalty of ₹5,000.
- If your annual income is less than INR 5,00,000/- : Penalty of ₹1,000.
These disadvantages are in addition to the penalties & fines that come with filing a belated return, So, it is advisable to file your Income Tax Returns within the original due date whenever possible. If you required any kind of further assistance with the belated filing process or have any specific questions, feel free to ask!