ITR Filing Deadline Looms Large: Will CBDT Extend Relief?

The clock is ticking for taxpayers as the deadline to file Income Tax Returns (ITR) for the financial year 2023-24 (Assessment Year 2024-25) approaches on July 31, 2024. With millions of taxpayers scrambling to meet the deadline, speculation is rife about a possible extension by the Central Board of Direct Taxes (CBDT).

Key Points:

  • ITR Filing Deadline: The last date to file ITR for FY 2023-24 without incurring a penalty is July 31, 2024.
  • Penalty for Late Filing: Taxpayers who miss the deadline will be subject to a late filing fee.
  • Extension Rumors: There have been persistent rumors about a possible extension of the ITR filing deadline.
  • CBDT’s Stance: The CBDT has officially denied any extension of the deadline.
  • Taxpayer Concerns: Many taxpayers are facing challenges in filing their returns due to technical glitches and complexities in the tax laws.

ITR Filing Deadline: A Quick Recap

To avoid hefty penalties, it’s crucial to file your ITR before the due date of July 31, 2024. Here’s a brief overview of the key points:

  • Due Date: July 31, 2024
  • Penalty: A late filing fee will be imposed on those who miss the deadline.
  • Importance of Filing: Timely filing helps avoid notices and ensures smooth tax compliance.

Will there be an Extension?

The possibility of an extension has been a hot topic among taxpayers. While there have been calls from various quarters for an extension, the CBDT has maintained a firm stance, denying any such move.

Reasons for the Demand for Extension:

  • Technical Glitches: Many taxpayers have reported facing technical issues on the income tax portal, hindering the filing process.
  • Complex Tax Laws: The intricacies of the tax laws can be overwhelming for individuals, leading to delays in filing.
  • Last-Minute Rush: The tendency of many taxpayers to procrastinate often results in a rush to file returns close to the deadline.

Tips for Timely ITR Filing

To avoid the last-minute rush and ensure a smooth filing process, consider the following tips:

  • Gather Necessary Documents: Collect all relevant income and deduction proofs well in advance.
  • Start Early: Don’t wait until the last moment to begin the filing process.
  • Utilize Online Resources: Take advantage of online tutorials and calculators to simplify the process.
  • Seek Professional Help: If you’re facing difficulties, consult a tax professional for guidance.

Penalties for Late ITR Filing

If you miss the July 31 deadline to file your ITR for FY 2023-24, you’ll face the following penalties:

Late Filing Fee (Section 234F)

  • Maximum penalty: Rs. 5,000
  • For taxpayers with income up to Rs. 5 lakh: Penalty is limited to Rs. 1,000.
  • This penalty applies even if you owe no tax.

Interest on unpaid tax (Section 234A)

  • You’ll be charged 1% interest per month on the unpaid tax amount.
  • Interest starts accruing from the day after the due date.

Conclusion

With the ITR filing deadline fast approaching, taxpayers must prioritize completing their returns to avoid penalties. While the hope for an extension has faded, careful planning and early action can help ensure a hassle-free filing experience. Stay updated with the latest information from official sources to avoid misinformation.