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ITR Filing Deadline: If you have opted for the old tax regime, missing the deadline could lead to losing its benefits. If you miss the deadline, you will be automatically shifted to the new tax regime, which is the default option.
The last date for filing Income Tax Returns (ITR) for FY 2023-24 is due on July 31 (Wednesday). But what happens if you miss the deadline of July 31? Here are a few things you need to know.
In case a person misses the July 31 deadline, he will have the opportunity to file a belated return by December 31 of this year but failing to submit your ITR on a new date as well will result in the automatic assignment to the new tax regime.
There are some speculations that the deadline of July 31 will get extended but that is highly unlikely. In 2023 as well, a large number of taxpayers were caught off guard when the deadline was not extended. Therefore, it is advised to prepare and file your returns on time to avoid penalties and fines.
ITR Filing Deadline: What happens if you miss filing returns by July 31 this year?
Currently, two tax regimes are being operated: the old regime and the new regime which was introduced in 2020 and features revised tax slabs and concessionary rates.
If you fail to file your ITR by July 31, you have the option to submit a late return and as per Section 234F of the Income Tax Act, late filing fees of ₹5000 can be levied. If your income does not exceed ₹5 lakh, the late filing fee is ₹1,000.
Additionally, interest will be charged at the rate of 1 per cent per month or part of the month on the outstanding tax amount from the due date but the penalty imposed cannot surpass the amount of tax in arrears.
On the other hand, if you have opted for the old tax regime, missing the deadline could lead to losing its benefits. If you miss the deadline, you will be automatically shifted to the new tax regime, which is the default option.
Those who choose to file their income tax returns late will also have to give up the opportunity to carry forward any capital losses they might have suffered. This means such taxpayers will be unable to utilize these losses to offset future gains resulting in a higher tax liability in coming years.
(With inputs from agencies)
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Riya Teotia
Riya is a senior sub-editor at WION and a passionate storyteller who creates impactful and detailed stories through her articles. She likes to write on defence
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