Income Tax

Extend the Time Limit of Filing Income Tax Returns (ITR) for Non-Audit Taxpayers in F.Y.2023-2024

The return of filing for the income earned in F.Y. 2023-2024, i.e., for the income earned between 1st April 2023 and 31st March 2024. The assessment year is the review of the subsequent year, i.e., on 1st April 2024 to 31st March 2025. Hence, the assessment year would be AY- 2024-25.
So and the last date to file Income tax returns (ITR) for F.Y. 2023-2024 is discussed below.

• For an individual, Hindu Undivided Family, AOP, BOI, the due date for tax filing is 31st July 2024.
• For businesses, the due date for tax filing is 31st October 2024.
• For businesses requiring transfer pricing reports (in case of international/specified domestic transactions), the due date for tax filing is on 30th November 2024 
• For revised returns and late returns, the due date for tax filing is on 31st December 2024

Consequences of missing the deadline for Income tax returns filing

• Interest:
  If the ITR is filed after due date and the person must pay interest under Section 234A @ 1% per month or part month on the unpaid tax amount. 
• Late fee:
  A fee of Rs.5,000 under section 234F must be paid, and if the total income exceeds Rs. 5 lakhs, that will be reduced to Rs.1,000.
• Loss adjustment:
  In case of incurred losses from the stock market, mutual funds, properties, or any of businesses, one can carry them forward and adjust them with next year’s income. It helps to lower tax liability significantly. Loss adjustment is only permitted in case of a person declares the losses in an ITR and files it with the income tax department before the deadline. 
• Belated Return:
  It means filing an ITR after the due date, called a belated return. However,  in that case, one still has to pay the late fee and interest and be allowed to carry forward the losses in future adjustments.
  The income tax department has also mentioned the due date of filing the belated return, i.e. on 31st December of the assessment year.

What is the meaning of “due date” as per Income Tax?

After the conclusion of each financial year, certain specified people are required to file Income Tax Returns with the Income Tax Department. To ensure that returns are filed on time, the tax department has established a deadline by which a person can file a return without paying late fees. This last date is the “Income Tax Return Due Date”.The deadline for filing an Income Tax Return varies based on the type of taxpayer; for example – Individual, HUF, firm, LLP, company, trust, and AOP/BOI; and whether or not an audit is required.

Taxpayers who file their return beyond the due date will be subject to interest under Section 234A and a penalty under Section 234F.

How do I make changes in income tax returns after the due date?

After the amendments, if the taxpayer needs to change the original return, they can use a revised return under Section 139(5), and that is to be filed on or before 31st  December of the Assessment Year.

Once the deadline has passed, the taxpayers cannot file any returns. If the return was missed due to unforeseen circumstances, after obtaining permission from A.O. can file past returns under Section 119.

The government has also introduced the ITR- U form for updating income tax returns in the Union Budget 2022. The ITR-U form is for people who either failed to file their ITRs or filled them out incorrectly and with false information. Using the ITR-U form, taxpayers have two years from the conclusion of the applicable assessment year to update their returns and correct any errors or omissions on their ITRs. For instance, if the taxpayers still need to report some income, an updated return may be filed by 31st March 2024.

An updated return can be filed if:

• The income tax returns have not previously been filed;
• Income is not reported correctly;
• Wrong heads of income have been chosen;
• Reduction of carried forward losses;
• Reduction of unabsorbed depreciation;
• Reduction of tax credit under sections 115JB and 115JC;
• Wrong rate of tax.

The time limit to file the ITR-U

The time limit for filing an updated ITR is 24 months from the end of the assessment year. For example, in the current financial year 2023-24, updated returns for AY 2021-22 and AY 2020-21 can be furnished.

Conclusion

The Central Board of Direct Taxes (CBDT), in the exercise of its powers under section 119 of the Income Tax Act,1961^[1], extends the time limit of furnishing return of income under sub-section (1) of section 139 of Act of the Assessment year 2023-24, which is the 31^st July 2024.

Also Read:
Income Tax Raid (Rules & Regulations)
Taxability of Dividend in Income Tax Returns
All Types of Income Tax Return Filing In India