ITR filing deadline: Income tax returns for audits due on November 15, check out the penalties if deadline is missed

The e-filing of Income Tax Returns (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) commenced on April 1, 2024, with varying deadlines for different categories of taxpayers. 

The deadline for taxpayers undergoing an income tax audit and other specific designations to file their ITR for FY 2023-24 was extended to November 15, 2024, from the original deadline of October 31, 2024. This extension was granted by the Central Board of Direct Taxes (CBDT) to allow adequate time for taxpayers to conduct a thorough audit before submitting their returns for the Assessment Year 2024-25.

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November 15 deadline

The November 15 deadline is for:

1. Any corporate entity
2. Any individual taxpayer who is required to undergo audit as per the Income Tax Act or any other applicable law
3. Any partner of a firm whose financial records need to be audited as per the Income Tax Act or any other applicable law, or the spouse of such partner if Section 5A (regarding income sharing between spouses governed by the Portuguese Civil Code) applies to them.

Tax audit report

The taxpayer subject to an income tax audit must provide specific details related to the audit in their Income Tax Return (ITR), such as the date of submission of the audit report and the acknowledgment number. The ITR cannot be completed without these details being entered. Hence, it is necessary for the taxpayer to complete the tax audit before filing their ITR.

If the deadline for submitting the income tax audit report is missed, taxpayers must ensure that the audit report is submitted prior to filing their ITR. Failure to do so could lead to two legal infractions: failure to file the ITR and missing the submission of the tax audit report.

Failure to meet the audit deadline will result in forfeiting the extension until November 15, and any tardy submissions will incur penalties, potentially including a fine as per Section 271B along with interest on outstanding tax amounts.

Taxpayers who have missed the deadline for submitting the Tax Audit report should prioritise filing the report by paying any applicable penalties. Once the Tax Audit report is submitted, they should proceed to submit the ITR by November 15, 2024.

The deadline for submitting the tax audit report for the fiscal year 2023-24 was initially set for September 30, 2024. However, it was subsequently extended to October 7, 2024.

What if you miss the November 15 deadline

If a taxpayer fails to meet the November 15, 2024 deadline for filing their ITR, they can still choose to submit a belated return by December 31, 2024. Nevertheless, this will result in various penalties, such as the imposition of interest charges under Sections 234A and 234B. Moreover, a penalty under Section 234F may be levied, ranging from Rs 1,000 to Rs 5,000, determined by the taxpayer's income level. 

Also, failure to submit the tax audit report on time may result in a penalty of either up to Rs 1.5 lakh or 0.5% of total sales, depending on which amount is lower.