Missed Filing Your ITR? Here’s Why It Could Cost You Up to ₹10,000!

Taxpayers, beware! Missing the deadline for filing your Income Tax Return (ITR) can lead to hefty penalties. While the initial deadline for filing ITR for FY 2023-24 (AY 2024-25) was July 31, 2024, there’s still a chance to file your taxes, but it comes with consequences.

What Happens If You Miss the Deadline?

• Late Fees: Filing a belated ITR by December 31 will attract a penalty of ₹5,000 under Section 234F. However, if you file after December 31 and before March 31, the fine increases to ₹10,000.
• Reduced Penalty for Low Income: For those with an annual income of ₹5,00,000 or less, the penalty is capped at ₹1,000.

Additional Costs for Delayed Filing

• Interest Charges: Any outstanding tax will incur interest under Section 234A.
• Loss of Benefits: Filing late means you can’t carry forward certain losses (e.g., business or capital losses) to future financial years, except for house property losses.

Can You Still Make Corrections?

If you realize there’s an error in your belated return, you can file a Revised Return within the allowable time. However, delays in filing might also result in longer processing times for refunds.

Don’t Forget to Verify Your Return

After filing, ensure you verify your return within 120 days using Aadhaar OTP, net banking, or by sending the signed ITR-V form to the Centralized Processing Center (CPC).

Final Reminder

If you’ve missed the July 31 deadline, act fast to avoid escalating penalties and ensure your financial year ends on a stress-free note!