July 31 is the last day for people and businesses to file their income tax returns for FY 2023-24. The deadline, set by the Income Tax Department, will not be extended this year. Failure to file your ITR on time may result in penalties, fines and even audits.
What happens if you miss the deadline
Failing to file ITR before the deadline can have severe repercussions this year.
Loss of Old Tax Regime Benefits: Missing the deadline means automatically shifting to the new tax regime, which lacks deductions and offers no exemptions. This may lead to higher taxes and interest on outstanding amounts.No Carry Forward of Losses: Failing to file ITR on time means you cannot carry forward losses from stocks, mutual funds, properties or businesses to offset against future income, leading to higher taxes in future.
Penalties and fines in case you miss the deadline
Filing a late return will incur a penalty of Rs 5,000 (or Rs 1,000 if income is below Rs 5 lakh) under Section 234F. Interest will be charged at 1 per cent per month on outstanding tax amounts under Section 234A.
How to switch tax regimes
File Form 10-IE along with your Income Tax Return (ITR) to change tax regimesForm 10-IE must be submitted by the initial ITR filing deadlineA 15-digit acknowledgement number will be issued upon filing Form 10-IEUse the acknowledgement number when filing your ITR under the new tax regime
Will the ITR deadline be extended?
The Income Tax Department has confirmed that there will be no extension to the July 31 deadline, so taxpayers are urged to file their returns immediately to avoid the above-stated consequences.
