ITR Filing 2024-25: This is the last date to file belated, revised tax returns for FY24

ITR Filing deadline: The deadline for filing belated income tax returns or submitting revised returns for the assessment year 2024-25 is approaching rapidly. The final date for submission is just a week away, on January 15, 2025.

Originally, the Central Board of Direct Taxes (CBDT) originally set December 31, 2024, as the deadline for filing belated or revised tax returns. However, the deadline was extended by 15 days to give taxpayers more time to complete this process.

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For any individuals who have not yet filed their tax return for the fiscal year 2023-24 or need to amend a previously submitted return because of mistakes, it is important to finalize the process prior to the extended deadline.

Revised Income Tax Return

A taxpayer has the option to correct errors in their original or late Income Tax Returns (ITR) by submitting a revised return. This allows for adjustments to be made, such as rectifying omissions of income, claiming deductions that were missed, or revealing undisclosed bank accounts.

If the taxpayer misses the deadline to file a revised return for a specific assessment year, they will lose the opportunity to do so. This will result in the inability to claim refunds or offset losses through a revised return. While revising a return is permitted under income tax laws, it cannot be done if it leads to increased refunds, decreases the total tax liability reported in the original return, or includes new losses.

Under section 139(5) of the Income Tax Act, 1961, taxpayers are permitted to file a revised return as many times as necessary. However, it is advisable to limit unnecessary revisions to avoid attracting scrutiny from the Income Tax Department. 

A revised tax return can be submitted up to three months before the end of the relevant assessment year or before the completion of assessment, whichever occurs first. It is possible for a taxpayer to revise their Income Tax Return (ITR) even after receiving an intimation under section 143(1). However, once the ITR has been subject to a regular scrutiny assessment under section 143(3), it can no longer be revised.

Belated Income Tax Return

A belated income tax return, also known as a late return, is the submission of a tax return after the official deadline has passed. For the Financial Year 2023-24, the deadline for filing income tax returns was initially set for July 31, 2024. In the event that you missed this deadline, you have the option to file a belated return to fulfill your tax obligations. The cutoff date for submitting a belated return is usually December 31 of the same year, although there was an extension granted until January 15, 2025.

Late returns are filed in accordance with Section 139(4) of the Income Tax Act, which mandates a penalty of Rs 5,000 upon submission. This penalty must be paid regardless of whether any tax amount is still due. However, if your taxable income falls below a specified threshold, a reduced penalty of Rs 1,000 is applicable. Furthermore, no penalty is levied for filing a late return if the taxable income is below the basic exemption limit of Rs 3 lakh.

When filing a late return for the FY 2023-24, taxpayers will not have the option to select the old tax regime, as the default tax regime effective April 1, 2023, is now the new tax regime. This means that any delayed returns for FY 2023-24 must be filed under the new regime.

The Old Tax Regime provides taxpayers with a variety of deductions and exemptions that are not available in the new tax regime. These deductions and exemptions play a vital role in reducing the taxpayer's taxable income and, consequently, their income tax liabilities.

Conversely, the new tax regime only allows for two deductions: a standard deduction of Rs 50,000 for the financial year 2023-24 (Assessment Year 2024-25) and the employer's contribution to the National Pension System (NPS) of up to 10% of the basic salary for the financial year 2023-24 (Assessment Year 2024-25).

Penalty of not filing ITR by Jan 15, 2025

It is important to note that if the taxpayer submits their FY24 income tax return after the new deadline of January 15, 2025, they will incur a higher penalty. Beyond that date, the individual will be subject to a fine of Rs 10,000.