ITR Filing: Today is the last day to file your income tax returns, so file today to avoid penalties

Today is July 31st, 2024, the last day to file your income tax returns, without having to pay any penalties. And before you ask, the Income Tax Department has not come out with any notification informing the taxpayers of a deadline extension. That is why you should not delay filing your income tax returns anymore!

The IT department noted that as of July 26th, 2024, over 5 crore ITRs had already been filed, marking an 8.5% increase from the number of ITRs filed during this period, last year. The IT department, in an X post, highlighted that last year, it had reached the 5-crore ITR filing deadline on July 27th. However, this year, it had breached the milestone a day earlier, i.e., on July 26th, 2024.

Earlier, the All Gujarat Federation of Tax Consultants and Income Tax Bar Association had requested a deadline extension for AY 2024–25 from July 31st, 2024, to August 31st, 2024, citing issues and glitches in the tax filing portal. However, there has been no response from the finance ministry on the same.

What happens if I don't file my ITR until July 31st?

For AY 2024–25, you can file a belated ITR until December 31st, 2024. But remember, it comes with many disadvantages as well. Here's a snapshot of all the benefits you will have to forego:

What are the penalties for late filing of ITR?

1. You will have to pay a penalty of Rs. 1,000 if your total annual taxable income is below Rs 5,00,000. But if your taxable income exceeds this threshold, you will have to pay a penalty of Rs 5,000.

2. Even if you have to file a nil ITR, you must do so before July 31st. This is because if you do not end up filing it on time, you will have to pay a fine of Rs 1,000.

3. According to Section 234A of the Income Tax Act, you will also have to pay interest on your outstanding tax amount at the rate of 1% per month, starting from the due date, i.e., July 31st.

No carry forward of losses, old tax regime

1. You will not be able to carry forward any losses, including those from your mutual funds or stock investments, business income, and other sources. You will only be allowed to carry forward your losses from house properties. This could significantly raise your total tax liability and lead to you incurring hefty losses.

2. After July 31st, 2024, you will not be able to opt for the old tax regime for tax calculation purposes. Starting August 1, the new tax regime, which offers significantly fewer deductions and exemptions as compared to the old regime, will be considered default for you.

Also read:
Decoding Form 16: How do you file your taxes if you don't get Form 16?
Wondering which ITR form is right for you? Know all about it here