Didn’t submit your tax returns by July 31? Don’t miss the Dec deadline for late filing

You can file belated returns or revise erroneous ones by December 31

Did you miss filing your income tax returns for the financial year (FY) 2023-24 before the July 31 due date? You can still complete the process by December 31, albeit with late-filing fees.

Despite multiple reminders from the income tax (IT) department to file returns by the due date, many fail to do so. Everybody whose total income is higher than the basic exemption limit has to file returns. The threshold under the old, with-exemptions tax regime is Rs 2.5 lakh for individuals under the age of 60, Rs 3 lakh for senior citizens over 60, and Rs 5 lakh for those over 80. Under the new tax regime, the basic exemption limit for FY24 is Rs 3 lakh (assessment — AY — year 2024-25).

July 31 of the relevant AY (2024-25 at present) is the due date for salaried individuals and other taxpayers who do not have audit obligations. However, such individuals have a window until December 31 of that year to file their returns, though this comes with certain conditions.

Penalties and interest

Brace up for late-filing fees and interest on the tax payable, if any. Late filers will have to cough up a penalty of Rs 5,000 for the delay. However, if your total income is less than Rs 5 lakh, this amount is limited to Rs 1,000.

Moreover, in case you have any tax due, you have to shell out simple interest under Section 234A of the Income Tax Act at the rate of 1 percent per month of delay, or part thereof. This will start immediately after July 31 up to the actual date of filing returns.

Also read: ITR Filing 2024 last date: File tax returns before July 31 or face penalties, delay in refunds

No carry forward of capital losses

Taxpayers who incur capital losses on the sale of shares or mutual funds during the financial year  are allowed to carry these forward  and set off against future income in subsequent years. However, this leeway is not available to those who miss the July deadline.

Also read: ITR filing 2023-24: Errors in your income tax return? Here’s what you can do…

Noticed errors? Revise your returns

If you have come across errors in your returns filed before July 31, you can file a revised return under section 139 (5) to correct the same. Common mistakes include:

•        Errors in entering personal details.

•        Wrong bank account details,

•        Selection of the wrong ITR form.

•        Not declaring all the income, for example, foreign bank / pension account, MNC ESOPs, FD interest, etc.

•        Not claiming deductions you were eligible for.

Per I-T rules, you can revise your return, if required, three months before the end of the relevant AY or before the completion of assessment, whichever is earlier. So, for AY 2024-25 (FY 2023-24), the deadline for filing the revised return is December 31, 2024. While revising your return, ensure that you mention the acknowledgement number of the original return.

Note that neither is there any restriction on the number of times you can revise your returns, nor do you have to pay any charges for doing so. Also, you can revise your returns even if the tax refund due to you has been processed.

Like in the case of the original return, ensure that you verify the revised returns as well within 30 days of having submitted them online.