After December 31, taxpayers have the option to file updated returns (ITR-U) by March 31, 2025. If there is tax liability in this, then additional tax penalty is levied. This is 25 percent of the total outstanding tax (including cess, surcharge and interest).
Income Tax: If you have not filed Income Tax Return (ITR) for the financial year 2023-24 or you find any mistake in the filed return, then the last date to file or revise the return is 31 December 2024. Returns filed after the due date (31 July 2024) are called belated returns. It can be filed till 31 December of the respective assessment year. The return can also be revised till 31 December itself. Failure to do both the tasks by this deadline may result in a penalty. In some cases, one may have to face legal action including jail.
Filing of updated return
After 31 December, taxpayers have the option to file updated returns (ITR-U) till 31 March 2025. If there is tax liability in this, then additional tax penalty is levied. It is 25 per cent of the total outstanding tax (including cess, surcharge and interest). Therefore, it is important to file or revise your return before the December deadline to avoid paying heavy penalties.
If you are filing a return or revising your ITR, you need to keep the following things in mind:
1. Review your Annual Information Statement (AIS) and Form 26AS
Annual Information Statement (AIS)
AIS has become an important tool for tax authorities. Through this, the authorities keep track of income from many sources. These include bank interest, stock transactions and other investments. It includes income from many sources and is updated from time to time.
Even if you have filed ITR for FY2023-24, there is a possibility of new data being included in your AIS. You will have to match the data of your filed ITR with the new data of AIS. You can revise your return if necessary. You can view your AIS by logging in to the Income Tax e-filing portal.
Form 26AS
Form 26AS mainly contains detailed information of Tax Deducted or Collected at Source (TDS/TCS). If your previously filed ITR does not include any TDS/TCS, you can revise the return. This can help you get a refund.
2. E-verification within 30 days
After filing a belated or revised return, you will have to verify it within 30 days. You can do this work electronically or manually. In the manual method, you will have to send a signed physical copy to the Centralized Processing Center (CPC) Bangalore. If the return is not verified within 30 days from the date of filing, the return becomes invalid. This may lead to other actions including penalty under the Income Tax Act.
It is important to keep in mind that if you are sending ITR-V, you have to send it only by speed post and keep the postal receipt safe with you.
3. Late filing fee and interest
If you miss the original date of filing the return, you will have to pay late filing fees:
-A penalty of Rs 1,000 will be imposed on income less than Rs 5 lakh
-A penalty of Rs 5,000 will be imposed on income more than Rs 5 lakh
Apart from this, if the tax is due, interest may have to be paid under sections 234A to 234C of the Income Tax Act.
4. Criminal case on non-filing
Under the Income Tax Act, deliberate non-filing of ITR can lead to a jail sentence of up to 7 years. However, if the tax amount is less than Rs 10,000, then no criminal case will be filed.
In the past years, the Income Tax Department has become strict against people who do not file ITR and evade taxes. Legal action is being taken against such defaulters.
The deadline of December 31 is near. This is the last chance to file or revise income tax returns. With this, the taxpayer can avoid penalty and notice from the Income Tax Department. Not following the income tax rules or showing less income will have serious consequences. You may have to pay a fine or face legal action.
Login to the Income Tax e-filing portal today. Then file or revise your return. If you face any problem in this, you can take the help of your chartered accountant.
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