The Income Tax Department has reported over five crore income tax returns (ITRs) filed as of July 26. According to Trak.in, Despite issues with the tax filing portal, taxpayers must adhere to the July 31 deadline to avoid penalties.
What Happens If You Miss the July 31 Deadline?
Missing the July 31 deadline results in severe penalties. Under Section 234F of the Income Tax Act, 1961, late filers face a penalty of Rs 5,000, or Rs 1,000 if taxable income is Rs 5 lakh or less, even if no tax is due.
Certain taxpayers must file ITR regardless of income if they meet conditions like spending Rs 2 lakh on foreign travel, paying Rs 1 lakh on electricity, or depositing Rs 1 crore in current accounts. Late filings also forfeit benefits like carrying forward losses and opting for the new tax regime for AY 2024-25.
To file late, use Section 139(4) and be prepared for penal interest on outstanding tax. Those below the exemption limit can file late without a penalty but still need to file for potential refunds.
With many ITRs already filed, timely submission is crucial to avoid penalties and preserve benefits.
