Late fees and interest in case of ITR filing after 31st July!

Due date of filing income tax return for AY 2024-25 has elapsed and many taxpayers still wonder whether they can file the return after due date in case they have missed the filing deadline. Failure to meet the deadline for filing ITR can land you in some troubles such as interest, penalties, late fees, notices or scrutiny etc.

Let us understand the various consequences for not filing ITRs within due date.

Due dates for filing ITRs:
Due dates for filing ITR depends upon the category of person and the nature of the income being reported.

• Persons who are not subject to tax audit provisions under the Income Tax Act of 1961 have to file their ITRs by the 31st of July of the relevant year.
• The last date for filing revised or belated ITRs for the financial year 2023-24 is the 31st of December, 2024.
• Persons who are required to get their accounts audited under the provisions of Income Tax Act of 1961, except for those involved in cases of transfer pricing must file their ITRs by the 31st of October.
• Persons who are involved in transfer pricing cases and have to furnish a report under section 92E of the Income Tax Act, 1961 must file their ITRs by the 30th of November.

Late filing fees and interests applicable in case of Income Tax Return for Individuals:

Not filing ITR can land you in the financial consequences, a list of which is mentioned below:

• Penalty for late filing fees u/s 234F:

Taxpayers whose income exceeds Rs.5 lakhs are required to pay a late filing fees of Rs.5,000 before filing the belated return.

However, those having income less than Rs. 5 lakhs may file their belated return after paying late fees of Rs.1,000.

• Interest u/s 234A:

Section 234A deals with charging simple interest @1% p.m. or part of the month on the outstanding tax amount till the time the return is filed. Similarly, section 234B and 234C applies when the advance tax payments are not complied with. These sections are also applicable till the time return is not filed.

• Section 270A:

Non-filing of ITR or underreporting of income will lead to a penalty of 50% of the total tax payable on the under-reported income.

• Section 271H:

If taxpayer fails to file TDS/TCS returns by the due date this section is applied. The penalty for not filing these returns can be a sum which is not less than ten thousand rupees but which may extend to one lakh rupees. However, this is in addition to a late filing penalty under Section 234E, which is ₹200 per day till TDS/TCS returns are filed.

Consequences of non-filing of ITR withing due date:
Failure to furnish ITR within due date will result in various other financial and non-financial consequences as well. These are as follows:

• Set-off disallowance:

Carry forward of losses to subsequent years is allowed only if return is filed within the due date.

• TDS/TCS Refund delay:

The refund processing can take more time if the ITR is not filed within due date.

• Expenses disallowed:

Certain business expenses or medical expenses etc. are disallowed if you do not file your ITR on within due date.

• Old tax regime unavailability:

If any person wishes to enjoy benefits of old tax regime then it must be done before due date of filing ITR. Since the time to file return within due date of filing has elapsed, the person can file belted return under New tax regime only.

Conclusion:
Implications of not filing ITR can cause various financial as well as non financial consequences. A late filing fee, penalty or interest is to be levied if a person wishes to file a belated return. This option of filing a belated return for a particular assessment year is available till 31^st December of the relevant assessment year.