No Late Fees for These Taxpayers Missing July 31, 2024, ITR Deadline

If you miss the July 31, 2024, deadline for filing your income tax return (ITR), you might face more than just a penalty. You could lose the interest on your tax refund and won’t be able to carry forward any losses. However, you can still file a belated ITR by December 31, 2024, by paying a penalty.

Penalties for Late Filing

Chartered accountant Manoj Dembla explains that if you miss the July 31 deadline, you can still file by December 31, 2024, but you may face penalties and interest charges based on your income.

Ankit Jain from Ved Jain and Associates details the penalties:

• ₹5,000 if your total income is above ₹5 lakh.
• ₹1,000 if your total income is below ₹5 lakh.

Late fees apply to everyone who needs to file an ITR, including those whose income exceeds the basic exemption limit but don’t owe any tax. Additionally, a 1% monthly interest on any outstanding tax is charged from July 31 until the ITR is filed. Filing late might also mean losing out on interest on your tax refund.

Who Doesn’t Pay Penalty for Late Filing?

Certain taxpayers don’t have to pay a penalty for filing a belated ITR:

• Those whose deadline is October 31, 2024.
• Those with income below the basic exemption limit.
• Those not required by law to file an ITR but choose to do so voluntarily.

According to Parul Aggarwal, founder of a CA firm, penalties under section 234F apply if you’re required to file an ITR but miss the deadline. Certain taxpayers must file an ITR even if their income doesn’t exceed the exemption limit, such as:

• Those with savings deposits over ₹50 lakh a year.
• Individuals with annual sales over ₹60 lakh.
• Professionals earning over ₹10 lakh a year.
• Those paying electricity bills over ₹1 lakh a year.
• Those with TCS/TDS exceeding ₹25,000 (₹50,000 for seniors).
• Those with assets or beneficiaries in foreign countries.
• Those spending over ₹2 lakh on foreign travel.
• Those who are authorized signatories for foreign accounts.

For individuals needing an income tax audit, the ITR deadline is October 31, 2024. A belated ITR is required only if you miss your deadline and were supposed to file.

Choosing the Old Tax Regime

If you’re filing ITR 1 or ITR 2, you can choose the old tax regime without needing a separate form, as long as you file before the deadline. Deepak Chopra, Direct Tax Committee Chairman, explains that non-business taxpayers can choose the old regime in their ITR without additional forms, but business taxpayers need to file Form 10-IEA.