Filing an Income Tax Return (ITR) is a vital part of fulfilling your tax obligations, and one must be well aware of the deadlines for filing ITR. For taxpayers not requiring audit, the due date to file ITR for Financial Year 2023-24 (Assessment Year 2024-25) was July 31, 2024. In case the deadline has passed, one can still submit a belated return, and this deadline is December 31, 2024. The filing needs to be done before that date in order to avoid penalty charges as well as interest accumulation. Stay updated with the rules for filing taxes to prevent any hurdles.

All taxpayers, however, have the same deadline for filing a revised return and a belated return. Many taxpayers are unaware of the penalties they may incur if they fail to file the revised and belated returns for FY 2023-24 by the deadline of December 31, 2024.

Consequences of Missing the ITR Filing Deadline

Fines for filing delayed: There is a Rs 5,000 penalty for taxpayers who file their taxes after the deadline. The fine is Rs 1,000 for anyone whose income is less than Rs 5 lakh. The purpose of this penalty is to incentivise prompt adherence to tax reporting deadlines.

Interest: Under Section 234A, taxpayers who owe unpaid taxes will be charged interest at 1% per month until the tax is paid. This extra expense can add up rapidly, raising the overall amount due.

Loss of exemptions: Under the old tax system, filing a late return resulted in the loss of exemptions. The new tax system will apply to taxpayers filing delayed returns, prohibiting deductions and exemptions under sections 80C and 80D, among other things.

Carrying over losses: Failure to file by the deadline results means the taxpayers will lose the chance to carry over capital losses to subsequent years. This could also affect taxpayers’ ability to deduct their losses from future capital gains.

The default tax regime: The new tax system will be the default tax regime for the fiscal year 2023-24. Late filers will immediately be switched to this regime and will no longer be eligible for deductions offered by the old tax system.

Today, March 15, 2024, marks the final deadline for taxpayers in India to settle their fourth and final installment of advance tax for the financial year 2023-24. Missing this deadline can result in penalties and interest charges.

Advance tax allows taxpayers to spread out their income tax payments throughout the year, rather than paying a large sum at the end of the financial year. This system ensures a steady flow of tax revenue for the government.

Who Needs to Pay Advance Tax?

Salaried individuals, freelancers, and businesses: If your total tax liability is expected to be more than Rs 10,000 for the financial year, you are required to pay advance tax.

Senior citizens: Those aged 60 and above who do not have business income are exempt. However, senior citizens with business income must pay an advance tax.

Presumptive income taxpayers: Businesses and professionals under the presumptive taxation scheme (sections 44AD and 44ADA) have the option to pay their entire advance tax in one go by March 15th or by March 31st.

How To Pay Advance Income Tax?

Eligible taxpayers are required to make advance income tax payments in four installments throughout the financial year, typically in June, September, December, and March. These payments can be made conveniently online via either the official website of the Income Tax Department (incometaxindia.gov.in) or the National Securities Depository.

Act Now To Avoid Penalties

The Income Tax Department urges all taxpayers to settle their advance tax dues before the deadline.
Failure to do so can lead to interest charges under sections 234B and 234C of the Income Tax Act.

For more information on advance tax and how to calculate your liability, taxpayers can visit the Income Tax Department’s website.