Missed the ITR deadline? The clock’s ticking—know the date before ₹10,000 penalty hits!

New Delhi (The Uttam Hindu): As of December 2024, taxpayers in India need to be aware of the crucial deadlines for filing Income Tax Returns (ITR) and the consequences of missing these deadlines. The Central Board of Direct Taxes (CBDT) has extended the deadline for filing ITR for the financial year 2023-24 (Assessment Year 2024-25) to December 15, 2024, specifically for taxpayers with international transactions who are required to submit reports under Section 92E of the Income Tax Act.

The original deadline for filing ITR without penalties was July 31, 2024, for individual taxpayers and entities not requiring an audit. Taxpayers who missed this deadline can still file a belated return until December 31, 2024, as provided under Section 139(4) of the Income Tax Act. However, late filing comes with penalties. If a taxpayer's total income is below ₹5 lakh, the penalty for late filing is ₹1,000. For those with income exceeding ₹5 lakh, the penalty increases to ₹5,000. Additionally, interest may be charged on any unpaid tax under Section 234A at a rate of 1% per month or part thereof on the outstanding amount.

Timely filing is crucial not only to avoid penalties but also to ensure compliance with tax regulations. It allows taxpayers to claim refunds without delays and helps maintain a good financial reputation. Moreover, it prevents complications that may arise from late submissions. As December comes to a close, it is essential for taxpayers to remain vigilant about their ITR obligations. The extended deadline provides an opportunity for those who missed the initial due date to file their returns without incurring excessive penalties. Taxpayers should ensure they complete their filings by December 31, 2024, and take advantage of this extension to avoid future complications and financial losses.