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What is last date for filing ITR

26 September 2023

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Wondering when you need to mark your calendar for filing your Income Tax Returns (ITR) for the financial year 2023-24? It's that time of the year again when we need to gather our receipts, crunch some numbers, and fulfil our duty as responsible citizens. Filing your ITR might seem daunting, but it's a crucial step in managing your finances wisely. Plus, it keeps you in good standing with the tax authorities. So, let's dive into the details and make sure you're well-prepared to meet the deadline with ease!

When is the last date to file ITR?

Taxpayer Type	Financial Year (FY)	Assessment Year (AY)	Last Date to File ITR	Notes
Individual	2023-24	2024-25	July 31, 2024	Stay alert for any official announcements from the Income Tax Department, as these dates can be extended.
Businesses and Individuals Subject to Audit	2023-24	2024-25	September 30, 2024	Prepare in advance to avoid the last-minute rush and potential penalties.

What are the Financial Year (FY) and Assessment Year (AY)?

Understanding the terms Financial Year (FY) and Assessment Year (AY) is crucial for tax planning:

1. Financial Year (FY): This is the year in which you earn your income. In India, the financial year starts on April 1st and ends on March 31st of the following year. For our discussion, FY 2023-24 would start on April 1, 2023, and end on March 31, 2024.

2. Assessment Year (AY): This is the year that follows the financial year. It is the period in which the income earned in the FY is assessed and taxed. The AY for the income earned during FY 2023-24 would be AY 2024-25.

Understanding these terms helps in aligning your financial documents and ensures that you file your ITR correctly. Remember, filing your ITR is not just about staying compliant; it's also an opportunity to claim any tax refunds you're eligible for, report your income accurately, and maintain a clean financial record.

Why is it important to file Income Tax Returns on time?

Filing your Income Tax Returns (ITR) on time is crucial for several reasons, each impacting your financial health and legal standing. Here’s why you shouldn’t delay this important annual task:

Avoid Penalties: Late filing can result in penalties ranging from ₹1,000 to ₹10,000, depending on your income level and the extent of the delay.
Prevent Legal Consequences: Timely filing helps avoid notices and legal actions from the Income Tax Department.
Claim Refunds: If you're due for a refund from the government, filing your ITR on time is necessary to process the refund.
Carry Forward Losses: To carry forward capital losses for offsetting against future capital gains, timely filing is essential.
Loan Approvals: Banks and financial institutions often require the latest ITRs for loan applications, including home and personal loans.
Visa Applications: Many countries require recent ITR receipts as part of the visa application process to assess your financial health.

Filing your ITR on time not only keeps you compliant but also enhances your credibility and ensures you’re in a position to make the most of your financial opportunities.

What is the due date for making payment of advance tax instalments?

For individuals whose tax liability exceeds ₹10,000 in a financial year, the payment of advance tax is required in instalments. The due dates for these payments are as follows for FY 2023-24:

1st instalment (15% of advance tax): On or before June 15, 2023
2nd instalment (45% of advance tax, cumulative): On or before September 15, 2023
3rd instalment (75% of advance tax, cumulative): On or before December 15, 2023
4th instalment (100% of advance tax, cumulative): On or before March 15, 2024

Paying advance tax on time prevents interest under Sections 234B and 234C of the Income Tax Act, ensuring you’re not paying more than necessary.

What happens if you miss the ITR filing deadline?

Missing the ITR filing deadline can lead to several consequences:

Late Fee: You'll be liable to pay a late filing fee under Section 234F, which can range from ₹1,000 to ₹10,000, based on your total income and the delay period.
Interest on Due Tax: Apart from the late fee, interest under Section 234A may also be applicable on any tax due.
Ineligibility to Carry Forward Losses: Except for loss from house property, you cannot carry forward capital losses or losses from business/profession.
Delayed Refunds: Any refunds due to you will be delayed, and the processing of your return might take longer.
Impact on Loan Applications: Delays in filing ITR can impact your loan or visa applications negatively, as it reflects on your financial discipline and credibility.

To avoid these outcomes, it’s advisable to file your ITR well before the deadline, ensuring peace of mind and financial stability.

What is the interest and penalty for delay in filing returns?

If you delay filing your Income Tax Returns (ITR), there are two main financial repercussions – interest and penalties:

Interest (Section 234A): If you owe tax to the government, an interest of 1% per month (or part thereof) is charged on the tax due, starting from the due date of filing until the date of actual filing.
Late Filing Penalty (Section 234F): For returns filed after the due date but on or before December 31st, a late fee of ₹5,000 is levied. This fee increases to ₹10,000 for returns filed post-December 31st. However, for small taxpayers with income up to ₹5 lakh, the penalty is limited to ₹1,000.

It's important to note that these costs are in addition to any taxes that are owed. Hence, filing your ITR on time helps avoid unnecessary financial burdens.

What is the benefit of filing an ITR?

Filing your Income Tax Return (ITR) has numerous benefits beyond just compliance:

Legal Documentation: Your ITR receipt is an important document for your financial record, serving as proof of your income and tax payment.
Quick Loan Approvals: For loan applications, including home and vehicle loans, your ITR serves as a key document to prove your financial stability and creditworthiness.
Visa Processing: Many countries consider your ITR as a part of the visa application process to evaluate your economic status.
Refund Claims: Filing ITR allows you to claim refunds for excess tax paid. The sooner you file, the quicker you can get refunds.
Carry Forward Losses: Filing your returns on time enables you to carry forward losses to subsequent years, which can be set off against future profits.
Avoid Penalties: Timely filing helps avoid penalties and interest on late filing, saving you from additional costs.

Filing your ITR is not only a fiscal responsibility but also a crucial step in managing your finances efficiently.

Conclusion

Filing your Income Tax Return (ITR) before the deadline is a vital part of managing your finances responsibly. It ensures compliance with tax laws, avoids penalties and interest, and supports your financial planning efforts. Beyond the obligations, the act of filing your ITR on time brings a host of benefits, from facilitating loan applications to enabling tax refunds. It reflects your commitment to fiscal discipline and integrity, enhancing your credibility in various financial transactions. So, mark your calendar, gather your documents, and prepare to file your ITR well within the deadline. Remember, a little planning goes a long way in ensuring peace of mind and financial stability in the long run.

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FAQs What is the Last Date of ITR Filing

How to claim an income tax refund after the due date?

To claim an income tax refund after the due date, you should still file your Income Tax Return (ITR) at the earliest, despite being late. The process remains the same as filing on time:

a. Login to the Income Tax e-Filing portal.

b. Select the appropriate ITR form based on your income and sources of income.

c. Fill in the necessary details, ensuring to report all sources of income accurately.

d. Declare the taxes already paid, including TDS and advance tax, to claim a refund.

e. Verify and submit your ITR.

The Income Tax Department processes refunds after assessing your return, even if filed late, provided you are eligible for a refund.

How to pay income tax after the due date?

If you've missed paying your income tax by the due date, you can still make the payment through the following steps:

a. Visit the official Income Tax e-Payment portal.

b. Select the appropriate challan (ITNS 280) for paying income tax.

c. Fill in the requisite details, including PAN, assessment year, and address.

d. Choose the type of payment (Self-Assessment Tax if paying after the due date).

e. Make the payment using net banking or debit card options.

f. Save the receipt of payment for record-keeping and mention this payment while filing your ITR.

g. It's important to include interest for late payment as applicable under Sections 234A, 234B, and 234C.

What section under the Income Tax Act allows an individual to file an ITR after the due date?

Section 139(4) of the Income Tax Act allows individuals to file a belated ITR after the due date. However, it must be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. Filing under this section may attract a late filing fee under Section 234F and interest under Section 234A.

How to revise income tax returns before the due date?

To revise your income tax return before the due date:

a. Log in to the Income Tax e-Filing portal.

b. Choose the 'Revised Return under section 139(5)' option.

c. Enter the acknowledgement number and date of the original return filed.

d. Make the necessary corrections in the relevant fields of your ITR form.

e. Submit the revised return and keep a record of the acknowledgement.

How to revise income tax returns after the due date?

The process to revise an ITR after the due date is the same as revising it before the due date, under Section 139(5) of the Income Tax Act. You can file a revised return anytime before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

What is an income tax audit?

An income tax audit is an examination/review of an individual's or organisation's financial accounts and tax returns by a chartered accountant to ensure compliance with the Income Tax Act. It involves verifying the accuracy of the income declared, expenses deducted, and taxes paid.

Who needs to get an income tax audit report?

Under Section 44AB of the Income Tax Act, the following entities are required to get their accounts audited:

a. Businesses: If their total sales, turnover, or gross receipts exceed ₹1 crore in the FY.

b. Professionals: If their gross receipts exceed ₹50 lakhs in the FY.

c. Presumptive Taxation Scheme: Individuals opting for this scheme but claim profits lower than the prescribed rate and have income above the basic exemption limit.

Additionally, specific other entities and individuals under certain conditions may also need to undergo an income tax audit.

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