Income Tax Rule Changes In January: Deadline For Filing Belated ITR Extended; Know Penalty, How To File Online

Income Tax Return (ITR): In a major good news to tax filers, the Income Tax department has extended the deadline for filing belated or revised returns of income to January 15, 2024. The main deadline to file ITR forms to claim refunds is generally July 31st every year, however, a window is open for late tax filers or revised ITR filing till the end of the year, which is extended in 2025.

The IT department said, "CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from 31st December 2024 to 15th January 2025."

What is Belated Income Tax Return Filing?

As per the ClearTax report, a belated return is a return filed after the deadline i.e. 31st July of the assessment year but before 31st December of the assessment year. While late filing has consequences, it's still better than facing potential penalties for non-compliance.

Late Fee On Belated ITR:

However, filing a belated ITR comes at a cost. Belated income tax return attracts interest under sections 234A, 234B and 234C, while there is also a late fee levied under Section 234F while filing late.

Currently, there is a late fee of Rs 1,000 on gross total income up to Rs 5 lakh for belated filing. The penalty is higher to Rs 5,000 for more than Rs 5 lakh gross total income in late filing.

Also, the ClearTax report highlighted that Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.

How To File Belated Income Tax Returns Online?

As per the Income Tax guidelines, ​​the Finance Act 2022, has inserted subsection (8A) in section 139 to enable the filing of an updated return. The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not (subject to certain conditions). An updated return can be filed at any time within 24 months from the end of the relevant assessment year.

You can file and submit your ITR through the following methods:

- Online Mode - through e-filing portal

- Offline Mode - through Offline Utility

How To File ITR Online?

Step 1: Log in to the e-Filing portal using your user ID and password.

Step 2: On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.

Step 3: Select Assessment Year as 2024-25 and Mode of filling as Online, then click Continue

Step 4: In case you have already filled the Income Tax Return and it is pending submission, click Resume Filing. In case you wish to discard the saved return and start preparing the return afresh, click Start New Filing.

Step 5: Select Status as applicable to you and click Continue to proceed further.

Step 6: You have two options to select the type of Income Tax Return:

- If you know which ITR to file, select the ITR form; else

- If you are not sure which ITR to file, you may select Help me decide which ITR Form to file and click Proceed. Here the system helps you determine the correct ITR, then you can proceed with filing your ITR.

Step 7: Once you have selected the ITR applicable to you, note the list of documents needed and click Let's Get Started.

Step 8: Select the checkbox applicable to you regarding the reason for filing ITR and click Continue.

Step 9: For AY 2024-25 New Tax Regime is the default Tax Regime. Option "No" will be Auto Selected. If you want to opt out of New Tax Regime Select "Yes" in the Personal Information Section.

Review your pre-filled data and edit it if necessary. Enter the remaining/additional data (if required). Click Confirm at the end of each section.

Step 10: Enter/ Edit your income and total deductions details in the different sections. After completing and confirming all the sections of the form, click Proceed.

Step 11: If you click on Pay Now, you will be redirected to the e-pay Tax service. Click Continue.

Step 12: After successful payment through the e-Filing portal, a success message is displayed. Click Back to Return Filing to complete the filing of ITR.

Step 13: Click Preview Return.

Step 14: On the Preview and Submit Your Return page, select the declaration checkbox and click Proceed to Preview.

Step 15: Preview your return and click Proceed to Validation.

Step 16: Once validated, on your Preview and Submit your Return page, click Proceed to Verification.

Step 17: On the Complete your Verification page, select your preferred option and click Continue.

Step 18: On the e-Verify page, select the option through which you want to e-Verify the return and click Continue.

Once you e-verify your return, a success message is displayed along with the Transaction ID and Acknowledgement Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-filing portal, as per the IT department.