Every taxpayer in India must file their Income Tax Returns (ITR) by the due dates as per the Income Tax Act of 1961. These dates vary depending on the type of taxpayer and the return submitted. The Central Board of Direct Taxes (CBDT) recently announced an extension for the deadline to file Income Tax Returns (ITR) for the assessment year 2024-25, as per an official statement from the finance ministry. The due date for filing returns under section 139(1) of the Income Tax Act, 1961 has been extended from 15th December 2024 to 31st January 2025 for below classes of taxpayers referred to in clause (aa) of Explanation 2 to sub-section (1) of section 139 of the Act.
Also, these dates are sometimes extended by the government under certain circumstances, such as technical glitches in the filing system or unforeseen events affecting taxpayers. The income tax return extended due date is mostly announced through official notifications from the Central Board of Direct Taxes (CBDT) to provide relief to taxpayers.
Let’s examine the income tax return extended due date, understand the filing process, and see what penalties are levied if you miss the deadline.
Income tax department extends Vivad Se Vishwas scheme deadline to January 31 2025
The Income Tax Department has extended the deadline for the Vivad Se Vishwas scheme to January 31, 2025, providing taxpayers with an additional month to settle outstanding tax disputes without incurring penalties or interest.
The Vivad Se Vishwas scheme, introduced in the Union Budget 2024-25, aims to resolve pending income tax disputes by allowing taxpayers to pay the disputed tax amount and receive a waiver on interest and penalties. Initially, taxpayers who filed declarations before December 31, 2024, were required to pay 100% of the disputed tax. With the extension, this deadline has been moved to January 31, 2025. Declarations filed on or after February 1, 2025, will attract a 10% additional charge, requiring taxpayers to pay 110% of the disputed tax.
This extension offers taxpayers more time to assess their tax disputes and opt for the scheme to achieve a faster resolution. The Central Board of Direct Taxes (CBDT) issued a circular stating that the due date for determining the amount payable under the scheme has been extended to January 31, 2025.
Taxpayers with pending disputes, including appeals and writs filed by either the taxpayer or tax authorities as of July 22, 2024, before various judicial forums, are eligible to participate in the scheme. By availing of this opportunity, taxpayers can conclude their income tax disputes and avoid additional penalties, thereby promoting a more efficient tax resolution process.
The extension reflects the government's commitment to reducing litigation and simplifying tax compliance, encouraging taxpayers to settle disputes amicably. Taxpayers are advised to take advantage of this extended deadline to resolve their tax matters promptly and benefit from the concessions offered under the Vivad Se Vishwas scheme.
What is section 87A?
Section 87A of the Income Tax Act provides a rebate for resident individuals, effectively reducing their tax liability. Under the new tax regime for the financial year 2023-24 (assessment year 2024-25), individuals with a total income up to Rs. 7 lakh are eligible for a rebate up to Rs. 25,000. In the old tax regime, the rebate is available for incomes up to Rs. 5 lakh, with a maximum rebate of Rs. 12,500. This provision ensures that individuals within these income brackets have minimal or no tax liability.
What is the matter?
The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) to provide relief to taxpayers facing challenges in meeting the original due date. This extension allows additional time for accurate filing, ensuring compliance without incurring penalties. Taxpayers are advised to utilise this extended period to gather necessary documents and complete their filings promptly to avoid last-minute hassles.
High Court order
The High Court has issued an order addressing the concerns of taxpayers regarding the ITR filing deadline. Recognising the difficulties faced by individuals and businesses, the court has directed the Income Tax Department to extend the due date, providing taxpayers with additional time to fulfill their obligations. This judicial intervention aims to alleviate the burden on taxpayers and ensure a fair compliance process.
Key benefits of the extended deadline
The extension of the income tax filing deadline offers several significant benefits to taxpayers:
- Additional time for accurate filing
An extended deadline provides taxpayers with extra time to gather necessary documents, verify information, and ensure accurate completion of their tax returns. This reduces the likelihood of errors that could lead to audits or penalties. Accurate filing is crucial for compliance and to avoid future complications. - Reduced last-minute rush
Taxpayers often experience a surge in filing activity as deadlines approach, leading to increased stress and potential mistakes. An extension alleviates this pressure, allowing individuals and tax professionals to manage workloads more effectively and submit returns without the haste that can compromise accuracy. - Opportunity to maximise deductions and credits
With additional time, taxpayers can thoroughly review their financial activities over the year to identify all eligible deductions and credits. This careful assessment can result in significant tax savings, as individuals can claim benefits they might have overlooked in a rushed filing. - Enhanced compliance and reduced penalties
Meeting the extended deadline ensures compliance with tax laws, thereby avoiding late-filing penalties and interest charges. Timely filing within the new timeframe demonstrates a commitment to legal obligations and financial responsibility. - Flexibility for complex financial situations
Taxpayers with complex financial circumstances, such as multiple income sources, investments, or business operations, benefit from the extra time to accurately report all relevant information. This flexibility helps in preparing comprehensive and precise tax returns. - Improved access to professional assistance
Tax professionals often face high demand during peak filing seasons. An extended deadline allows taxpayers better access to professional services, ensuring they receive the necessary guidance to navigate their tax obligations effectively.
From February 1, 2025, extra 10% tax will be payable on applying for Vivad Se Vishwas Scheme 2024
The Vivad Se Vishwas Scheme 2024 is a government initiative aimed at resolving pending income tax disputes by allowing taxpayers to settle their cases by paying the disputed tax amount with certain concessions. To encourage prompt settlements, the scheme offers reduced payment rates for declarations filed within specified timeframes.
Important Dates and Additional Charges
- On or Before January 31, 2025: Taxpayers can settle disputes by paying 100% of the disputed tax amount.
- From February 1, 2025: An additional 10% of the disputed tax amount will be payable, making it 110% of the disputed tax.
This structure incentivizes early participation in the scheme, allowing taxpayers to benefit from reduced financial liabilities.
Payment structure under Vivad Se Vishwas scheme 2024
Nature of Tax Arrears |
Declaration Filed on or Before January 31, 2025 |
Declaration Filed on or After February 1, 2025 |
Disputed Tax Amount |
100% of disputed tax |
110% of disputed tax |
Taxpayers are advised to take advantage of the extended deadline to settle their disputes promptly and avoid the additional 10% charge applicable from February 1, 2025. This extension reflects the government's commitment to reducing litigation and promoting a dispute-free tax environment. Timely action will ensure compliance and financial benefits under the scheme.
What happens if the new deadline is missed?
Missing the new income tax filing deadline can lead to several consequences:
- Late filing penalty: A penalty of up to Rs. 10,000 may be imposed for delayed submissions.
- Interest accrual: Interest at 1% per month under Section 234A will accrue on any unpaid tax amount.
- Loss of benefits: Taxpayers may lose the opportunity to carry forward losses from business or capital gains, and certain deductions may become inapplicable.
Income tax filing due dates for FY 2023-24 (AY 2024-25)
Filing income tax returns by the due date helps avoid penalties and ensure compliance. This date varies based on the type of taxpayers and the nature of returns they file. Let’s know about the various due dates as stipulated under the Income Tax Act for FY 2023-24 (AY 2024-25):
| Category of taxpayer | Due date for tax filing FY 2023-24 (without extension) |
| All companies and all assessees (other than companies). For taxpayers covered under clause (a) of Explanation 2 to sub-section (1) of section 139. | 15th December 2024 |
| Individual/ AOP/ BOI/ HUF(not required to audit the books of accounts) | November 10th, 2024 |
| Businesses (required to get the books of accounts audited) | October 31st 2024 |
| Businesses that are required to furnish transfer pricing reports (in cases of international/ specified domestic transactions) | November 30th 2024 |
| Revised return under section 139(5) | December 31st 2024 |
| Belated return under section 139(4) | December 31st 2024 |
| Updated return under section 139 (8A) | March 31st 2027 (must be filed before 2 years from the end of the relevant assessment year) |
| Tax return deadlines extended under section 87A rebate claims | December 31, 2024, to January 31, 2025 |
Also read: Direct Tax Code vs Income Tax Act
Important things to keep in mind while filing late return
Filing your Income Tax Return (ITR) after the due date, known as a belated return, is permissible but comes with certain implications. Here are key considerations to keep in mind:
1. Penalties for late filing
- Late filing fee: Under Section 234F of the Income Tax Act, a penalty is levied for filing returns after the due date. For the financial year 2023-24, the penalties are:
- Rs. 1,000 if the total income is up to Rs. 5 lakh.
- Rs. 5,000 if the total income exceeds Rs. 5 lakh.
- Interest on tax due: In addition to the late filing fee, interest under Section 234A is charged at 1% per month or part thereof on any unpaid tax amount from the original due date until the date of filing.
2. Loss of certain benefits
- Carry forward of losses: Filing a belated return disqualifies you from carrying forward specific losses (e.g., business or capital losses) to subsequent years, potentially increasing future tax liabilities.
- Interest on refunds: Delayed filing may result in the loss of interest on any tax refunds due, as the interest is calculated from the date of filing the return.
3. Deadline for belated returns
For the assessment year 2024-25, the deadline to file a belated return is December 31, 2024. Missing this extended deadline means you cannot file the return unless the Income Tax Department issues a notice, leading to further complications.
4. Revised returns
If you discover any errors after filing a belated return, you have the option to file a revised return by December 31, 2024. However, it's advisable to file the original return accurately to avoid the need for revisions.
5. Compliance and legal implications
Consistent late filing or non-filing can attract scrutiny from the Income Tax Department, leading to assessments and potential legal consequences. Timely filing ensures compliance and minimizes the risk of penalties or legal actions.
Advance income tax filing due dates FY 2024-25
According to Section 208 of the Income Tax Act, taxpayers with an estimated tax liability exceeding Rs. 10,000 must pay advance tax. However, senior citizens are eligible for certain exemptions from this requirement. This tax must be paid in four different instalments. Let’s see the schedule for FY 2024-25:
| Due date | Instalments | Advance tax to be paid |
| June 15th 2024 | First instalment | 15% |
| September 15th 2024 | Second instalment | 45% |
| December 15th 2024 | Third instalment | 75% |
| March 15th 2025 | Fourth instalment | 100% |
Taxpayers who fall under sections 44AD and 44ADA, which pertain to “Presumptive Income”, must pay their advance tax by March 15 of the previous year. It is worth noting that any tax paid by March 31 is considered “advance tax”.
Essential tips for first-time ITR filers in 2025
As per the Income Tax Act, individuals earning above the basic exemption limit must file their returns by January 15, 2025 or the income tax return extended due date. However, for first-time taxpayers, this task can seem daunting. But, by understanding basic tax laws, deductions, and exemptions, first-time filers can easily furnish their returns and remain compliant.
Let’s check out some essential tips that can help you accurately file income tax returns for FY 2023-24:
1. Total taxable income
First-time filers should calculate their total taxable income by subtracting tax deductions and exemptions from their gross income. Some common deductions available under Chapter VI-A of the Income Tax Act are:
- Health insurance premiums
- Home loans
- Education loans
- Donations
- Investments made in tax-saving instruments
Also, you can claim exemptions for allowances received like House Rent Allowance (HRA) and Leave Travel Allowance (LTA).
2. New vs. Old tax regime
While filing their income tax returns, taxpayers have a choice between the old and new tax regimes. It must be noted that the old tax regime offers several exemptions and deductions like HRA and those available under sections 80C, 80D, 80G, and more.
On the other hand, the new tax regime charges lower tax rates but offers fewer deductions and exemptions. From FY 2020-21, the new tax regime has become the default tax option unless the taxpayer opts for the old tax regime.
3. Form 16
For salaried individuals, Form 16 is important as it details the TDS (Tax Deducted at Source) deducted by the employer from the salary. Furthermore, it includes all the necessary information for filing an ITR. Usually, it is provided by the employer by late May or mid-June.
You must refer to Form 16 while filing your income tax returns, as it ensures you accurately report your income and claim any deductions you are eligible for. Additionally, Form 16 provides the TAN of your employer, which is necessary for filling out the ITR forms correctly.
4. Review of Form 26AS
For those unaware, Form 26AS is an annual tax statement. It details:
- Tax deducted/ collected on your behalf
and - Lists your various income sources
You must use this form to accurately fill out your income and tax details in your ITR form. Follow these steps to use Form 26AS while filing taxes:
- Download it from the income tax e-filing portal.
- Then, review the details of
- Tax deducted at source (TDS)
- Tax collected at source (TCS)
- Any advance tax payments made throughout the year
- Compare these details with your financial records.
- If you find any discrepancy, report it to the relevant deductor for correction.
- Finally, use this verified information to file your return.
5. Annual information statement (AIS)
Like Form 26AS, AIS is another statement provided by the Income Tax Department to facilitate income tax return filing. It provides a comprehensive summary of your financial transactions, including TDS, TCS, interest, dividends, and stock market activities. AIS usually extends the information available in Form 26AS and helps ensure accurate tax filing.
6. Choosing ITR forms
It is worth stating that The Income Tax Department provides various ITR forms to cover multiple sources of income and taxpayer categories. Each form addresses:
- Specific types of income, such as salary, business profits, or capital gains and
- Different taxpayer types, like individuals, companies, or Hindu Undivided Families (HUFs)
Hence, while filing the ITR, it is important to select the correct form. By choosing the right form, you can accurately declare all your income types under appropriate heads and avoid processing delays.
7. Requirement of documents
You will need the following documents at the time of filing:
- PAN
- Aadhaar
- Form 16
- Interest certificates
- Annual Information Statement
- Form 26AS
- Details of capital gains, and
- Proof of tax-saving investments like insurance premiums and PPF contributions.
8. ITR Verification
After filing the ITR, it needs to be verified. This verification can be done:
- Online using Aadhaar OTP
or - Offline by sending a signed physical copy of ITR - V (Verification) to the Income Tax Department.
Also read: What is direct tax code
What are the penalties for missing the ITR deadline?
Missing the ITR filing deadline or the income tax return extended date can result in several penalties and repercussions.Firstly, as per Section 234F of the Income Tax Act, a late filing fee of Rs. 5,000 is imposed. However, if the total income is below Rs. 5 lakh, this penalty is reduced to Rs. 1,000.
Secondly, under Section 234A, interest on the unpaid tax amount is charged at 1% per month or part of the month from the due date until the return is filed. This significantly increases the tax liability, especially if a substantial amount is due. Also, you lose the benefit of carrying forward losses and offsetting them against your future income. This disqualification increases future tax liabilities.
Key reasons why you should not delay filing your ITR
Filing your Income Tax Return (ITR) promptly is crucial for several reasons. Firstly, timely submission avoids late fees and penalties, which can add a significant financial burden. Secondly, it helps maintain a good compliance record with the tax authorities, potentially simplifying future financial transactions or loan applications. Additionally, delaying your ITR can result in the loss of certain benefits and deductions, reducing your potential refunds. Filing on time also minimises the risk of facing scrutiny or audits from the tax department. Lastly, early filing ensures peace of mind, reducing stress and allowing you to manage your finances more effectively.
Conclusion
Filing your income tax returns (ITRs) on time is important to avoid penalties and interest charges. For FY 2023-24, the deadline for most taxpayers is January 15, 2025. Missing this deadline results in a late fee of Rs. 5,000 (Rs. 1,000 if your taxable income is less than Rs. 5 lakhs), interest charges under section 234A, and disqualification from carrying forward losses.
If you are filing an income tax return for the first time, you must use forms like Form 16, AIS, and Form 26AS for accurate reporting. Also, you must select the correct ITR form applicable to you and wisely choose between the old and new tax regimes.
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