ITR Filing Last Date FY 2023-24 (AY 2024-25)

The Income Tax Return (ITR) filing deadline for the Financial Year 2023-24 (Assessment Year 2024-25) is crucial for all taxpayers to note. For individ

The Income Tax Return (ITR) filing deadline for the Financial Year 2023-24 (Assessment Year 2024-25) is crucial for all taxpayers to note. For individuals, HUFs, and entities not requiring audits, the last date is July 31, 2024. 

Businesses needing audits must file by October 31, 2024, and those with international or specified domestic transactions requiring transfer pricing reports have until November 30, 2024. Missing these deadlines can lead to penalties, interest on taxes due, and other repercussions. Ensuring timely ITR submission is essential for compliance, avoiding fines, and facilitating smooth financial operations.

When is the last date to file ITR?

The last date to file Income Tax Returns (ITR) for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024. If you miss this deadline, you can still file a belated return until December 31, 2024.

What are Financial Year (FY) and Assessment Year (AY)?

Financial Year (FY) and Assessment Year (AY) are terms commonly used in accounting and taxation. Understanding the distinction between these two is essential for accurately filing taxes.

Financial Year (FY)

• Definition: The Financial Year is the period during which you earn income. It runs from April 1st of one year to March 31st of the next year.
• Example: For the Financial Year 2023-24, the period is from April 1, 2023, to March 31, 2024.
• Purpose: This is the year in which you earn and record your income and expenses.

Assessment Year (AY)

• Definition: The Assessment Year is the period in which the income earned during the Financial Year is assessed and taxed. It follows the Financial Year.
• Example: For the Financial Year 2023-24, the Assessment Year is 2024-25.
• Purpose: This is the year in which you file your tax returns for the income earned in the Financial Year.

Relationship Between FY and AY

• The Assessment Year begins immediately after the Financial Year ends. For instance, income earned in FY 2023-24 is assessed in AY 2024-25.
• You file your tax returns in the Assessment Year based on the income earned in the preceding Financial Year.

Illustration

If you earned income from April 1, 2023, to March 31, 2024 (FY 2023-24), you will file your income tax return and pay taxes for this income in the Assessment Year 2024-25.

In summary, the Financial Year is the period in which you earn your income, and the Assessment Year is the period in which that income is evaluated and taxed.

Income Tax Returns (ITR) Filing Start Date for FY 2023-24 (AY 2024-25)

The e-filing of Income Tax Returns (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) commenced on April 1, 2024. The deadline for filing the ITR for FY 2023-24 is outlined below.

Income tax filing due dates for FY 2023-24 (AY 2024-25)

1. Individuals, HUFs, AOPs, BOIs

• Due Date: July 31, 2024 
• Applies to those whose books of accounts are not required to be audited.

2. Businesses Requiring Audit

• Due Date: October 31, 2024
• This category includes businesses that must have their accounts audited.

3. Businesses Requiring Transfer Pricing Reports

• Due Date: November 30, 2024
• This applies to businesses involved in international or specified domestic transactions that necessitate transfer pricing reports.

4. Revised Return

• Due Date: December 31, 2024
• For taxpayers who need to amend any information on previously filed returns within the same fiscal year.

5. Belated/Late Return

• Due Date: December 31, 2024
• For taxpayers who did not file their returns by the original due date.

6. Updated Return

• Due Date: March 31, 2027
• Allows taxpayers to update their return up to two years from the end of the relevant Assessment Year.

These deadlines help ensure timely compliance with tax obligations, avoiding penalties and interest on late filings. Always verify with official tax authority announcements for any updates or extensions to these dates.

Important due dates for paying advance tax instalments for FY 2023-24

Advance tax refers to paying income tax in installments as you earn your income throughout the year, rather than a lump sum payment at the end of the year. It is applicable to taxpayers whose tax liability, after TDS (Tax Deducted at Source), exceeds ₹10,000 for the year.

Here are the due dates and percentages for the payment of advance tax for the financial year 2023-24:

For taxpayers opting for the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act, the entire advance tax can be paid in one installment on or before March 15th of the financial year.

Failing to pay advance tax on time results in interest charges under Sections 234B and 234C of the Income Tax Act. Therefore, it's essential to calculate your estimated tax liability correctly and make timely payments to avoid extra charges.

What happens if you miss the ITR filing deadline?

Missing the deadline for filing the Income Tax Return (ITR) in India can lead to several consequences, some of which may involve financial penalties and restrictions on certain financial activities. Here's what can happen if you miss the ITR filing deadline in India:

Late Filing Fees: According to Section 234F of the Income Tax Act, if you fail to file your ITR by the due date, you will be subject to a late filing fee. The amount depends on your total income and the delay in filing:

• If the return is filed after the due date but on or before December 31, the fee is ₹5,000.
• If the return is filed after December 31, the fee increases to ₹10,000.
• However, if your total income is less than ₹5 lakh, the maximum fee charged will be ₹1,000.

Interest on Unpaid Tax: Under Section 234A, if you have unpaid tax, interest will be charged at 1% per month or part of a month on the tax amount outstanding. This interest is calculated from the due date of the return until the date of actual payment.

Restrictions on Carry Forward of Losses: If you fail to file your return by the due date, you lose the ability to carry forward certain losses (except house property loss) to subsequent years. These losses can generally be carried forward and set off against future income, which can reduce future tax liabilities.

Impact on Loan Applications: For loan applications, especially home loans or vehicle loans, banks and financial institutions often require the last three years of filed ITRs as proof of income. Delay in filing or not filing the ITR can affect your loan approval process.

Complications in Receiving Refunds: If you are entitled to a refund from the government, filing your ITR after the deadline can lead to delays in processing your refund.

Penalties and Prosecution: In cases where a substantial amount of tax is unpaid, the taxpayer not only faces penalties but could also be subject to prosecution for up to seven years.

Difficulty in Visa Processing: When applying for visas, many foreign embassies ask for copies of tax returns for the last couple of years. Non-filing of ITR can adversely affect these applications.

To avoid these penalties and complications, it's advisable to file your ITR on time. If you know you will miss the deadline, consider filing a belated return as soon as possible to minimize the consequences, especially penalties and interest charges.