Missed filing your ITR in July? The deadline is near – File to avoid paying fine of Rs...

The final date to file a belated ITR is December 31, and failing to meet this deadline could result in increased penalties and a loss of tax-related benefits.

As the year draws to a close, taxpayers who missed the July 31 deadline for filing their Income Tax Returns (ITR) for the financial year 2023-24 (assessment year 2024-25) are running out of time to submit their belated returns. The final date to file a belated ITR is December 31, and failing to meet this deadline could result in increased penalties and a loss of tax-related benefits.

Belated ITR Filing: A last chance for taxpayers

Section 234F of the Income Tax Act allows taxpayers who missed the original ITR deadline to file their returns under the belated provision by December 31. However, this option comes with a penalty. A late fee of Rs 5,000 applies for most taxpayers, while those with a total income below Rs 5 lakh will face a reduced penalty of Rs 1,000.

Consequences of missing the deadline:

For those who miss the December 31 deadline, there is an extended window to file the ITR until March 31, 2025. However, taxpayers who miss the December deadline will face a higher penalty. The late fee increases to Rs 10,000, and taxpayers will also incur a 1% monthly interest charge on unpaid taxes, starting from August 1. Additionally, failing to meet the deadline can lead to the loss of valuable tax benefits.

Loss of benefits and restrictions:

Late ITR filers will forfeit tax deductions and exemptions available under the old tax regime, including those under Sections 80C and 80D. Furthermore, taxpayers will lose the ability to carry forward capital losses to offset future gains, which could affect their future tax liabilities.

How to file a belated ITR:

Filing a belated ITR online is simple and can be done through the Income Tax Department’s e-filing portal. Here are the steps:

Visit https://www.incometax.gov.in.
Log in using your PAN credentials.
Select the correct ITR form for the assessment year 2024-25.
Fill in the required details and claim eligible deductions.
Pay the applicable late fee (Rs 5,000 or Rs 1,000).
Submit the form and validate it through Aadhaar OTP or another available method.