The Central Board of Direct Taxes (CBDT) has announced an extension for furnishing belated or revised income tax returns for the Assessment Year (AY) 2024-25. In a recent notification, the CBDT exercised its powers under Section 119 of the Income-tax Act, 1961, to extend the deadline for resident individuals.
The Central Board of Direct Taxes (CBDT) has announced a significant extension for taxpayers
The deadline for furnishing belated or revised Income Tax Returns (ITRs) for the Assessment Year (AY) 2024-25 has been extended from December 31, 2024, to January 15, 2025.
What does this mean to Taxpayers?
This extension provides taxpayers with additional time to file their belated returns under Section 139(4) or revised returns under Section 139(5) of the Income-tax Act, 1961
This move is particularly beneficial for those who missed the initial filing deadline of July 31, 2024, or need to correct unintentional errors or omissions in their original filings.
Rationale for the Extension
The CBDT’s decision to extend the deadline is aimed at reducing the stress on taxpayers and ensuring they have ample time to comply with their tax obligations. This extension is especially helpful for individuals who may have received intimations for mismatches in their Annual Information System (AIS) and reported income or transactions.
Penalties and Fees
It’s important to note that filing belated returns usually incurs penalties, including an interest charge of 1% per month under Section 234A and late filing fees amounting to ₹5,000 for incomes exceeding ₹5 lakh or ₹1,000 for incomes below this threshold. However, the revised returns do not attract penalties and can be filed multiple times within the allowed period.
Welcome reliefs
The extension is a welcome relief for many taxpayers, providing them with the necessary time to ensure their tax filings are accurate and complete. It’s a reminder of the importance of staying informed and proactive about tax obligations to avoid last-minute stress.
https://incometaxindia.gov.in/communications/circular/circular-no-21-2024.pdf
