ITR Deadline Extended for AY 2024-25: Key Details

In a recent notification dated 31st December 2024, the Central Board of Direct Taxes (CBDT) announced an extension for the filing of belated and revised income tax returns for the Assessment Year (AY) 2024-25. The deadline has been extended from 31st December 2024 to 15th January 2025 for resident individuals. This move aims to provide additional time for taxpayers to ensure accurate and error-free filings while reducing the risk of penalties and non-compliance. This blog explores the key aspects of this extension, its implications, and actionable insights for taxpayers.

Understanding Belated and Revised Returns

Filing income tax returns (ITR) accurately and within deadlines is crucial to avoid penalties and interest charges. The Income Tax Act, 1961 distinguishes between two critical types of return filings:

• Belated Return (Section 139(4)): Filed after the due date of the original return but before the end of the assessment year. Belated returns are generally filed with a penalty under Section 234F and accrue interest on unpaid taxes.
• Revised Return (Section 139(5)): Allows taxpayers to rectify errors, omissions, or incorrect details in their original or belated returns. Revised returns must also be filed within the same assessment year.
• Both return types play a key role in ensuring taxpayers have the opportunity to correct mistakes and meet compliance requirements.

Key Highlights of the Notification

The CBDT's latest notification introduces the following key changes:

• Extended Deadline: The last date for filing belated or revised income tax returns for AY 2024-25 has been extended from 31st December 2024 to 15th January 2025.
• Applicability: The extension applies specifically to resident individuals.
• Objective: To provide taxpayers with additional time for accuracy in filings and reduce the incidence of errors and penalties.
• Compliance Relief: The extension ensures taxpayers can file their returns without last-minute pressure or technical glitches on the income tax portal.

Implications for Taxpayers

The extension offers several benefits and considerations for taxpayers:

• Increased Accuracy: Additional time allows taxpayers to gather documents, verify data, and minimize errors.
• Reduced Penalties: Filing before the extended deadline helps avoid penalties under Section 234F.
• Interest on Tax Due: While the deadline is extended, taxpayers must ensure timely payment of any outstanding taxes to minimize interest charges under Section 234A.
• Compliance Assurance: Avoiding technical lapses ensures seamless compliance with income tax laws.

Step-by-Step Guide for Filing Belated or Revised Returns

Filing belated or revised returns involves a systematic process. Here's a simplified step-by-step guide:

1. Login to the Income Tax e-Filing Portal: Visit the official income tax e-filing portal and log in using your credentials.
2. Select the Correct Assessment Year: Choose AY 2024-25 and select the relevant ITR form.
3. Choose the Correct Return Type: Select either Belated Return or Revised Return based on your requirement.
4. Enter Accurate Details: Fill in income, deduction, and tax payment details accurately.
5. Pay Pending Taxes (if any): Calculate and pay any outstanding taxes.
6. Validate and Submit: Cross-check all information, validate the return, and submit it electronically.
7. E-Verify the Return: Complete the e-verification process using Aadhaar OTP, net banking, or other available methods.

Legal and Financial Considerations

• Interest under Section 234A: If there are outstanding tax liabilities, interest continues to accrue despite the extension.
• Late Filing Fee under Section 234F: Filing after 15th January 2025 may attract penalties of up to Rupee 10,000, depending on taxable income.
• Audit Requirements: Taxpayers subject to audits must ensure all compliance requirements are fulfilled in parallel.

Why Timely Compliance is Crucial

• Prevent unnecessary financial penalties and legal consequences.
• Build a history of compliance, which benefits future financial assessments.
• Avoid processing delays and scrutiny from tax authorities.

Technology and Filing Efficiency

With the extended deadline, taxpayers can leverage the Income Tax Department's e-Filing Portal effectively:

• Real-Time Status Updates: Track return processing in real-time.
• Auto-Populated Forms: Simplify filing with pre-filled details.
• Error-Checking Tools: Identify and correct discrepancies before submission.

Key Takeaways for Taxpayers

• Do not wait until the last day to file returns.
• Ensure all financial documents, including TDS certificates and investment proofs, are in order.
• Use professional assistance if necessary to ensure accurate filing.
• Pay any outstanding taxes promptly to avoid accruing interest.

Future Outlook for Tax Filing Extensions

While extensions provide temporary relief, they should not be relied upon as a standard practice. Taxpayers are encouraged to:

• File Early: Reduce last-minute stress and portal congestion.
• Stay Updated: Regularly check notifications from the CBDT.
• Adopt Digital Tools: Utilize software and platforms for seamless filing.

The extension of the deadline for filing belated and revised income tax returns for AY 2024-25 reflects the CBDT's proactive approach to supporting taxpayers and ensuring a smooth compliance process. Taxpayers should seize this opportunity to carefully review and submit their returns, ensuring compliance and avoiding unnecessary penalties. Staying informed, organized, and proactive will not only ensure legal compliance but also contribute to a seamless tax filing experience.

With the extended timeline now in place, taxpayers are encouraged to prioritize their filings well before 15th January 2025 to avoid any last-minute hurdles and ensure accuracy in their returns.