ITR filing FY 2023-24: Know these important dates

Income tax deadlines are crucial to ensure timely compliance and avoidance of penalties. Now that the fiscal year 2023–24 has concluded, it's essential to mark your calendar with the upcoming deadlines to avoid any last-minute rush or penalties. Understanding important tax due dates for the fiscal year 2023–24 (Assessment Year 2024–25) and insights into the consequences of missing the tax return deadline are significant for timely and efficient financial planning.

Tax due dates for FY2023–24 (AY2024–25)

For most taxpayers, the key date to remember is 31st July 2024. It is the last date to file taxes for the income you've earned during FY2023–24.

For businesses subject to a tax audit, the due date to file ITR is 31st October 2024. It applies to businesses or professionals who meet certain criteria, such as having revenues or earnings above a specific threshold.

Lastly, to file a revised or belated return, you have until 31st December 2024. However, it's wise to act sooner to avoid complications or penalties.

What happens if the deadline for filing ITR is missed?

Missing the tax return deadline can lead to several negative outcomes, each with its own financial implications.

• Late fee charges: Missing the deadline for filing your Income Tax Return (ITR) results in a late fee. The maximum late fee is Rs 5,000 for persons whose income is more than 5 lakhs. This is a penalty that's easily avoided with timely action.
• Accrued interest: Under Section 234A, if you don't file your ITR by the deadline, you're liable to pay interest on any taxes that are due. This interest is calculated from the day after the deadline until the date when you file your taxes.
• Restrictions on loss carry forward: Generally, you can carry forward certain losses to offset future gains for tax purposes. However, if you file late, you lose the opportunity to carry forward these losses, except for house property losses.
• Refund delays: For those expecting a refund from the government, filing late means you'll have to wait longer to receive it. This can affect your cash flow and financial planning.

What are the benefits of filling ITR before the due date?

Filing your income tax return (ITR) by the due date is a savvy move with several key benefits:

• Avoid penalties: By filing ITR on time, you avoid the pinch of late fees and the accumulating interest charges that come with delayed submissions.
• Accelerate refunds: A prompt ITR means the tax department processes your refunds faster, putting any money owed back into your pocket sooner.
• Smooth loan processing: Financial institutions often require the latest ITR for loan approvals, and having yours ready can grease the wheels for a smoother transaction.
• Maintain loss benefits: Filing within the deadline means you can carry forward capital losses, which can be netted against future capital gains for tax relief.
• Boost your credit profile: Timely tax filings reflect positively on your credit history, enhancing your score and improving access to credit facilities.
• Ease visa applications: Embassies respect a clean financial track record. On-time ITR submissions can make visa processing for international travel less cumbersome.
• Validate your income: For those without a fixed income slip, the ITR stands as a credible testament to your earnings and fiscal discipline.
• Curtail last-minute hassles: Filing early prevents the frantic rush as the deadline approaches, reducing errors and stress.

Also Read: Top 3 tax benefits of Personal Loans

What is an income tax audit?

An income tax audit is the process of verifying and inspecting taxpayers’ financial records to ensure compliance with income tax laws. This process is mandatory for individuals or businesses crossing a particular income or turnover threshold. Here are the key facets of an income tax audit:

• Compliance check: The audit confirms the precision of the tax reported and validates adherence to tax regulations.
• Error identification: The process uncovers inaccuracies or understatements, enabling the rectification of reported income.
• Accuracy enhancement: An audit conducted by a certified chartered accountant ensures the fidelity of your financial declarations.

Axis Bank facilitates a smooth tax payment experience as an authorised collector for the CBDT. With the integration of the TIN 2.0 portal and multiple channels for payment, including online banking and numerous branches, Axis Bank ensures that settling your tax liabilities is convenient and efficient.

Also Read: Tax on Current Account: Overview, tax implications & TDS deductions

FAQs

How can you claim an income tax refund after the due date?

File a belated return on or before 31st December of the assessment year to claim your refund.

How do you revise income tax returns after the due date?

You can file a revised return under Section 139(5) if you need to revise your income tax return after the due date. A belated return can also be revised. It must be done on or before 31st December of the relevant assessment year.

Under which section ITR is filed after the due date?

Section 139(4) covers the filing of belated returns after the due date but within the specified timeframe.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.