Penalties for late or belated ITR filing for AY 2024-25

When an individual misses the deadline for filing an Income Tax Return, they face several consequences in addition to penalties:

1. 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
2. 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.
3. 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)
4. 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!

CBDT extends last date for filing Income Tax Return for AY 24-25 from 31st December, 2024 to 15th January 2025.