The Central Board of Direct Taxes (CBDT) has extended the deadline for filing belated and revised Income Tax Returns (ITRs) for the Assessment Year (AY) 2024-25. Taxpayers now have until January 15, 2025, to comply with their tax obligations, a relief granted following a Bombay High Court directive.
Why Was the Deadline Extended?
The extension was prompted by a Public Interest Litigation (PIL) filed by the Chamber of Tax Consultants. The PIL highlighted technical issues with the income tax filing utility software, which had hindered taxpayers from claiming the Section 87A rebate. This rebate, a significant relief for individuals earning up to ₹7 lakh annually under the new tax regime, was reportedly disabled after a July 2024 software update. The court deemed the rebate a substantive right and directed the CBDT to allow more time for affected taxpayers
What is a Belated or Revised ITR?
A belated ITR is filed after the original July 31 deadline but before the extended date, as per Section 139(4) of the Income Tax Act. Similarly, revised ITRs are corrections to returns already submitted. Filing beyond the original deadline incurs penalties: ₹5,000 for taxpayers with incomes exceeding ₹5 lakh and ₹1,000 for those below this threshold. No penalties apply for incomes within the basic exemption limit of ₹3 lakh.
Implications of Missing Deadlines
Missing the belated or revised ITR deadline can lead to the loss of critical tax benefits, such as deductions, credits, or refunds. While updated returns can still be filed later, these are subject to additional conditions, often involving higher tax liabilities.
How to File Your ITR?
- Visit the official e-filing portal of the Income Tax Department.
- Log in using your PAN as the User ID.
- Select the appropriate ITR form based on your income source.
- Choose AY 2024-25 (FY 2023-24) as the assessment year.
- Enter all required details, including income and deductions.
-
Pay any outstanding taxes and submit the form
Takeaway for Taxpayers
This extension offers taxpayers valuable additional time to ensure accurate compliance without risking penalties or losing out on rebates. Experts advise taxpayers to utilize this period effectively, particularly to address any software-related challenges.
This relief reflects the judiciary’s proactive stance in safeguarding taxpayers’ rights, aligning procedural changes with substantive tax benefits
