Filing Income Tax Returns (ITR) is a crucial responsibility for taxpayers in India. As the year nears its end, December 31, 2024, is the final date to submit belated and revised returns for the financial year 2023-24 (assessment year 2024-25). This guide explains the distinctions between these filing options, their implications, and how missing deadlines can lead to penalties.
A belated return is filed after the original deadline, which was July 31, 2024, for the financial year 2023-24. Taxpayers who missed this deadline can still file their belated return by December 31, 2024.
As per Section 139(4) of the Income Tax Act, filing a belated return incurs penalties:
However, there are certain limitations:
A revised return allows taxpayers to correct mistakes or omissions in their originally filed ITR. As per Section 139(5), taxpayers can revise their returns multiple times within the allowable timeframe.
Taxpayers can revise their return even after receiving an intimation under Section 143(1). However, revisions are not allowed once the return undergoes scrutiny under Section 143(3).
Introduced in Budget 2022, the ITR-U form enables taxpayers to correct missed filings or disclosures for up to two years from the end of the relevant assessment year.
Starting January 1 of the assessment year, taxpayers can use ITR-U to make corrections, subject to certain limitations:
December 31, 2024, is a critical deadline for filing belated and revised returns for FY 2023-24. Missing this date leaves ITR-U as the only option, though it has its own restrictions. Taxpayers should ensure timely and accurate filings to avoid penalties and maximize tax benefits. Understanding these options aids in compliance and helps prevent potential complications.
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