ITR filing 2024: When is the next tax return filing deadline? Check details

ITR filing 2024: The deadline set by the Income Tax department for filing income tax returns for FY 2023-24 was July 31, 2024. Contrary to the requests of many taxpayers, the department decided not to extend the deadline. If you are a salaried or business taxpayer and missed the initial deadline, you still have the option to file your tax returns as belated returns with a penalty. The government has set the deadline for filing belated returns as December 31, 2024.

A Belated Return refers to a return that is filed after the deadline, which is on July 31 for the current assessment year. One should file the belated ITR before December 31 of the same assessment year. Despite the repercussions of late filing, submitting a belated return is preferable to incurring penalties for non-compliance.

Here are the top points to note if your planning to file a belated ITR:

1. Penalty: If you have decided to file your Income Tax Return (ITR) for the Assessment Year 2024-25 by December 31, you will be required to pay a penalty of Rs 5,000. Small taxpayers whose total income does not exceed Rs 5 lakh, the penalty shall be a maximum of Rs 1,000. 

2. Interest on unpaid tax: Interest will be applied to any unpaid tax amount at a rate of 1% per month or part thereof starting from the due date, which in this case is August 1, until the actual date of payment. If you submit your Income Tax Return (ITR) on December 31, 2024, the interest calculation on the tax owed will be computed from August 1 to December 31, considering the amount of tax due, and will continue until the date of filing the ITR.

Failing to file your tax return by the due date may result in the forfeiture of certain benefits. One significant loss could be the opportunity to carry forward losses to offset against future income. This can have a particular impact on businesses or individuals who have incurred capital losses.

In the event of ongoing failure to comply with regulations, significant penalties may be applied, and legal action may even be pursued. For example, should a salaried taxpayer with a total income of Rs 10 lakh neglect to submit their tax return by the stipulated deadline and have an outstanding tax debt of Rs 50,000, they would likely incur a penalty for late filing and accrue further interest on the unpaid taxes, further compounding their financial obligations.

3. New Tax Regime: Individuals who have missed the deadline for filing their ITR are ineligible to select the new tax regime. Consequently, starting from August 1, 2024, taxpayers subject to the July 31 deadline will no longer have the option to opt for the old tax regime for the Financial Year 2023-24 (AY 2024-25). This restriction will lead to a higher tax liability under the new tax regime and the forfeiture of deductions and exemptions previously available under the old tax system, in cases where the previous regime was more beneficial for the individual. It's important to note that, under the current income tax regulations, the new tax regime is the default taxation system. 

Under the New Tax Regime, deductions and exemptions are limited to help taxpayers lower their taxable income and tax liability. On the other hand, the Old Tax Regime provides various deductions under different sections of the Income Tax Act. Some of the key deductions include:

Section 80C: This section consists of deductions for insurance premiums, investments (such as Public Provident Fund, ELSS, Employee Provident Fund), children's education fees, and home loan principal repayments.
Section 80D: Deductions can be availed for medical insurance premiums.
Section 80E: Offers deductions for interest on education loans.
Section 80G: Provides deductions for donations to charitable institutions.
Section 24: Allows deductions for interest on home loans.

These deductions are essential for taxpayers to reduce their tax burden under the Old Tax Regime.

4. Losses: Taxpayers who file their income tax returns late may lose the opportunity to carry forward any capital losses. This would result in the inability to offset future gains, leading to a higher tax liability in the following years. It is essential to note that except for house property losses, other types of losses cannot be carried forward if the tax return is filed after the due date.

Income tax laws allow individuals to carry forward losses for up to 8 financial years. This provision is advantageous as it enables taxpayers to offset these losses against future capital gains. By doing so, their taxable income decreases, thereby reducing the income tax liability they must pay. Losses from sources like capital gains, house property, business, and profession can be carried forward to mitigate tax obligations effectively.