ITR Deadline: Deadline for filing income tax extended, know which taxpayers will get relief

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The Bombay High Court has asked the Central Board of Direct Taxes (CBDT) to extend the deadline for filing updated and belated income tax returns (Belated ITR Filing Deadline 2024) to January 15, 2025. The Bombay High Court directed the CBDT to extend the ITR filing deadline for eligible taxpayers under section 87A.

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What is Section 87A?

Section 87A aims to provide relief to individual taxpayers, especially those in the low income group. It provides tax exemption to individuals whose total taxable income is up to ₹5 lakh under the old tax regime and up to ₹7 lakh under the new tax regime.

What’s the matter?

A public interest litigation (PIL) filed by ‘The Chamber of Tax Consultants’ argued that the filing utility software updated on July 5 arbitrarily denied taxpayers the right to claim exemption under section 87A of the Income Tax Act, 1961. The petition said that these changes made in the software used for filing returns for assessment year 2024-25 are illegal.

The Bombay High Court said, “The Central Board of Direct Taxes (CBDT) is directed to immediately issue the necessary notification under section 119 of the Income Tax Act and extend the deadline for taxpayers who are required to file returns by December 31, 2024, at least till January 15, 2025. It is necessary to ensure that all taxpayers eligible for exemption under section 87A are given an opportunity to exercise their statutory rights.”

What happens if we miss the new deadline?

• If a taxpayer misses the new deadline to file ITR for 2023-24, then many problems may arise.
• Penalties may increase – Penalties for late filing can go up to ₹10,000.
• Loss of profits – such as losses from business/profession and the opportunity to carry forward capital gains will be lost.
• Payment of Interest – 1% interest will accrue every month under Section 234A.

Important things to keep in mind while filing late return
Late Fees:

• Late fee of ₹5,000 for those with income above ₹5 lakh.
• Late fee of ₹1,000 for those with income less than ₹5 lakh.
• If the income is below the taxable limit, there will be no late fee.
• No Loss Carry Forward: Carry forward of losses from business/profession and capital gains will not be allowed.
• Tax exemptions: Certain special deductions like section 80IA, 80IB will also not apply.
• No change in tax regime: Change to old or new tax regime will not be allowed while filing late returns.

If ITR is filed on time, all these problems can be avoided. Therefore, taxpayers are advised to take advantage of the deadline extended by the High Court and file their returns on time.

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