ITR Filling Deadline: The deadline for filing Income Tax Returns (ITRs) is July 31st this year. Those who do not meet the deadline may face serious consequences. If individuals fail to file their ITR by the July 31st deadline, they can file a late return by December 31st, 2024, but will be automatically enrolled in the new tax regime if they do not submit their Income Tax Return (ITR) within the deadline.

This implies that you will lose the option of selecting the old regime for the respective fiscal year as you will automatically be subject to the new tax regime. Currently, two tax regimes are in effect: the old regime and the new regime implemented in 2020 with revised tax brackets and concessions.

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What is the penalty for not submitting ITR on and before the deadline?

If you fail to file your ITR by July 31st, you can file a late return and may have to pay a late filing fee of Rs. 5000 under Section 234F of the Income Tax Act. Suppose your income does not exceed Rs. 5 lakhs. In that case, the late filing fee is Rs. 1000. Furthermore, interest will be levied on the outstanding tax amount as of the due date at the rate of 1% per month or part of a month, although the penalty imposed may not exceed the amount of the outstanding tax.

Those who choose to file their income tax returns late will also have to forfeit the opportunity to carry forward any capital losses they may have incurred. This indicates that such a taxpayer will not be able to use such losses to offset future gains, resulting in a higher tax liability in future years.

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