The deadline for filing belated or revised Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25 has been extended by the Central Board of Direct Taxes (CBDT). Initially set for December 31, 2024, the new deadline is now January 15, 2025.
This extension offers an additional two weeks for individuals to complete or amend their tax returns.
The announcement was made through the CBDT’s official account on X, where it was clarified that the new deadline applies to resident individuals. This move comes under the CBDT's powers, as stated in Section 119 of the Income-tax Act, 1961.
The change has been welcomed by many, as it provides further opportunities for those who missed the initial deadline to file their ITR or to make necessary corrections to already filed returns.
This extended timeline benefits two categories of taxpayers. First, those who missed the original deadline of July 31, 2024, to file their ITR and were given until December 31 to submit a belated return.
Second, it assists those who need to revise or correct details in their previously submitted returns. The revised return helps rectify mistakes, such as omitted income or incorrect claims for deductions. Taxpayers who file revised returns can avoid penalties or additional scrutiny from tax authorities.
While the extension is a relief to many, it comes with an important consideration: taxpayers who file their returns after the original deadline are subject to late fees. If a taxpayer's taxable income is below Rs 5 lakh, the late fee stands at Rs 1,000.
For those with a taxable income exceeding Rs 5 lakh, the late fee increases to Rs 5,000. These fees are intended to encourage timely compliance, though the extended deadline may provide taxpayers a bit more flexibility.
Despite these efforts, tax compliance in India remains a challenge. According to Union Minister of State for Finance, Pankaj Chaudhary, only 6.68% of India’s population filed ITRs in the fiscal year 2023-24.
This statistic highlights the gap in compliance, even with ongoing efforts to educate and encourage individuals to file their returns. As per the Minister’s statement in Parliament, a total of 8,09,03,315 people filed their ITRs during this period.
This figure is a small fraction of India’s population, emphasising the need for further initiatives to boost tax compliance.
The government's push to increase the number of filings has been accompanied by various measures to simplify the ITR filing process. These include the introduction of user-friendly online portals and better guidance on how to complete the forms correctly.
However, despite these efforts, many individuals face challenges, such as lack of awareness, complicated filing procedures, or difficulties in gathering necessary documents.
The revised filing system has provided a solution for taxpayers to rectify their mistakes, allowing them to stay in compliance with the law without incurring severe penalties.
The new deadline for belated and revised ITR submissions offers much-needed flexibility for taxpayers. With the additional time provided, it is hoped that more people will take the opportunity to file their returns or amend any errors, ensuring that they meet their tax obligations without facing undue stress.
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