Filing your Income Tax Return (ITR) on time is crucial to avoid penalties and fines. For the Financial Year 2023-24 (Assessment Year 2024-25), the deadlines vary based on the taxpayer’s category. Missing the deadline can lead to significant financial repercussions. Here’s what you need to know:
- Late Filing Fee: Under Section 234F of the Income Tax Act, a late filing fee of up to ₹5,000 is applicable if you file your ITR after the due date. For small taxpayers with a total income of less than ₹5 lakh, the penalty is reduced to ₹1,000.
- Interest Charges: If you don’t file your ITR on time, you will be required to pay interest at the rate of 1% per month on the unpaid tax amount, starting from the due date.
- Loss Adjustment: Failing to file your ITR on time may result in losing the benefit of carrying forward losses to subsequent years. This can impact your financial planning and tax liabilities in the future.
- Revised Returns: If you realize an error in your ITR after filing, you can file a revised return by December 31, 2024. However, the late filing fee still applies if the original return was filed after the due date1.
- Compliance and Benefits: Filing your ITR on time ensures compliance with tax laws and helps in avoiding unnecessary financial burdens. It also makes it easier to get loans and other financial approvals1.
It’s essential to stay informed and file your ITR on time to avoid these penalties and ensure smooth financial management. If you need assistance, consulting a tax professional can be very helpful.