The deadline to file your Income Tax Return (ITR) for 2023-24 is July 31. There will be no extension this year, even though some people hoped for one. Last year, many missed the deadline and faced last-minute rush and penalties.
As of July 26, over five crore people have already filed their ITRs, an eight percent increase from last year. On that day alone, tax authorities received 28 lakh returns, showing a last-minute rush. This year’s increase is part of a positive trend with more people filing their returns, which helps in improving tax compliance and expanding the tax base.
What happens if you miss ITR deadline?
If you miss the July 31 deadline, you can still file your return, but you’ll face a late fee penalty of up to Rs 5,000 under Section 234F of the Income Tax Act, 1961. For those earning Rs 5 lakh or less, the penalty is capped at Rs 1,000. You will also need to pay interest on any unpaid taxes from the original due date until you settle the amount.
Late filing has other drawbacks: you won’t be able to carry forward losses from capital gains, business income, and other sources (except house property losses). Additionally, you may lose the option to choose between the new and old tax regimes, which could affect those who benefit more from the old regime due to their income and deductions.
