31st October: Deadline for Filing Company Income Tax Returns

31st October: Deadline for Filing Company Income Tax Returns

Key Income Tax Return Filing Deadlines for FY 2023-24 (AY 2024-25)

With the ongoing e-filing season, it’s essential for every taxpayer to be mindful of income tax return (ITR) filing deadlines to avoid penalties under the Income Tax Act of 1961. This post outlines the critical due dates for filing ITR for the financial year 2023-24 (assessment year 2024-25), ensuring compliance with the tax regulations.

Chartered Accountants(CAs), Company Secretaries (CSs), and tax professionals can also take note of important deadlines for filing advance tax, as well as revised and updated ITRs. The Central Board of Direct Taxes (CBDT) has enabled ITR filing for AY 2024-25 from April 1, 2024.

What is Income Tax?

Income tax is a direct tax levied on the income of an assessee. It is calculated on income generated from various sources, including salaries, property, businesses, capital gains, and other sources. If an individual’s or entity’s income exceeds the taxable limit, after considering deductions under Chapter VI-A, they are required to file an income tax return.

ITR Filing Due Dates for FY 2023-24 (AY 2024-25)

Category of TaxpayerDue Date (Original Return)
Companies (regardless of tax audit applicability)31/10/2024
Non-company entities subject to tax audit31/10/2024
Partners in firms requiring tax audit31/10/2024
Taxpayers requiring an audit under Section 92E30/11/2024
Non-audit cases31/07/2024
Revised or Belated Returns31/12/2024
Updated Return (ITR-U)31/03/2024

Key Deadlines for ITR Filing Based on Taxpayer Category

Different types of taxpayers—individuals, HUFs, firms, LLPs, companies, trusts, and AOPs/BOIs—have different ITR due dates. These dates depend on whether a tax audit is required under section 139(1).

1. Non-Audit Cases (AY 2024-25)

For taxpayers whose books of accounts are not subject to an audit, the deadline to file ITR is 31st July 2024.

2. Audit Cases (AY 2024-25)

For taxpayers whose accounts require an audit, the ITR filing deadline is 31st October 2024.

3. Tax Audit Report Filing (3CA-3CD/3CB-3CD)

For taxpayers whose accounts are subject to an audit, the tax audit report must be submitted one month prior to the ITR filing deadline, by 30th September 2024.

4. Revised and Belated ITR Filing Deadlines

If you need to file a revised or belated ITR for AY 2024-25, the deadline is 31st December 2024. A penalty of INR 5,000 applies for late filing, but if your total income does not exceed INR 5 lakh, the penalty will be capped at INR 1,000.

5. Updated Return Filing (ITR-U)

You can file an updated return (ITR-U) by 31st March 2026, allowing you to correct any errors in previously filed returns.

File Tax Returns for A.Y. 2024-25 by 31st December to Avoid INR 5,000 Penalty

The Income Tax Department has informed taxpayers that filing tax returns for A.Y. 2024-25 after the due date will result in a penalty of INR 5,000. However, for individuals with a total income not exceeding Rs 5 lakh, the maximum penalty will be capped at INR 1,000.

SEPTEMBER 2024 INCOME TAX & TDS DUE DATES

DateDescription
7/9/2024“Due date for deposit of tax deducted/collected for the month of August 2024. However, all sums deducted/collected by a government office shall be paid to the credit of the Central Government on the same day where tax is paid without production of an income tax challan.”
7/9/2024“Declaration under sub-section (1A) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax for declarations received in the month of August 2024.”
14/9/2024“Due date for issue of TDS certificate for tax deducted under section 194-IA, 194-IB, 194M and 194S (by specified person) in the month of July 2024.”
15/9/2024“Due date for furnishing Form 24G by an office of the government where TDS/TCS for the month of August 2024 has been paid without the production of a challan.”
15/9/2024“Due date for furnishing statement in Form No. 3BB by a stock exchange in respect of transactions in which client codes have been modified after registering in the system for the month of August 2024.”
15/9/2024“Due date for furnishing statement in Form No. 3BC by a recognised association in respect of transactions in which client codes have been modified after registering in the system for the month of August 2024.”
15/9/2024“Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194-IB, 194M and 194S (by specified person) in the month of August 2024.”
30/9/2024“Application for the exercise of option under clause (2) of the Explanation to sub-section (1) of section 11 of the Income-tax Act, 1961 (if the assessee is required to submit return of income on November 30, 2024).”
30/9/2024“Statement to be furnished to the Assessing Officer/Prescribed Authority under clause (a) of the Explanation 3 to the third proviso to clause (23C) of section 10 or under clause (a) of sub-section (2) of section 11 of the Income-tax Act, 1961 (if the assessee is required to submit return of income on November 30, 2024).”
30/9/2024“Due date for filing of audit report under section 44AB for the Assessment Year 2024-25 in the case of a corporate assessee or non-corporate assessee (who is required to submit his/its return of income on October 31, 2024).”
30/9/2024“Audit Report under clause (ii) of section 115VW of the Income-tax Act, 1961 (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Audit report under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961, in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Audit report under clause (b) of the tenth proviso to clause (23C) of section 10 and sub-clause (ii) of clause (b) of sub-section (1) of section 12A of the Income-tax Act, 1961, in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution which is required to be furnished under clause (b) of the tenth proviso to clause (23C) of section 10 or a trust or institution which is required to be furnished under sub-clause (ii) of clause (b) of section 12A (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Audit report under sections 80-I(7)/ 80-IA(7)/ 80-IB/ 80-IC/ 80-IAC/ 80-IE (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Report under section 80JJAA of the Income-tax Act, 1961 (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Report under section 115JB of the Income-tax Act, 1961 for computing the book profits of the company (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Report under section 115JC of the Income-tax Act, 1961 for computing Adjusted Total Income and Alternate Minimum Tax of the person other than a company (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Due date for filing audit report under section 33AB(2), 33ABA(2), 35D(4)/35E(6) of Income-tax Act, 1961 (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Statement regarding preliminary expenses incurred to be furnished under proviso to clause (a) of sub-section (2) of section 35D of the Income-tax Act, 1961 by the assessee (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Audit report under sub-section (2) of section 44DA of the Income-tax Act, 1961 (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Report of an accountant to be furnished by an assessee under sub-section (3) of section 50B of the Income-tax Act, 1961 relating to computation of capital gains in the case of slump sale (if due date of submission of return of income is October 31, 2024).”
30/9/2024“Report under section 10AA of the Income-tax Act, 1961 (if due date of submission of return of income is October 31, 2024).”

Income Tax Return Filing Deadline for AY 2024-25

(For Assessees Required to Submit a Report Under Section 92E)

  • The deadline for filing Income Tax Returns for assessees required to furnish a report under Section 92E is 30th November 2024.
  • The due date for furnishing a Report from an Accountant by persons entering into an international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2023-24, is at least one month before the due date of filing of return u/s 139(1)

Consequences of Missing the ITR Deadline

Failing to file your ITR by the deadline can result in several penalties and consequences:

  • Increased scrutiny: Filing late may attract attention from the Income Tax Department, increasing the chances of your return being reviewed.
  • Interest on unpaid tax: Late filing results in interest charges on unpaid tax from the original deadline until payment.
  • Loss of carry-forward benefits: Missing the deadline may prevent you from carrying forward certain tax deductions and losses to future years.

Advance Tax Filing Deadlines for FY 2024-25

If your tax liability exceeds INR 10,000 in a financial year, you’re required to pay advance tax according to the following schedule:

Due DateComplianceTax Paid
15th June 2024First Instalment15%
15th September 2024Second Instalment45%
15th December 2024Third Instalment75%
15th March 2025Fourth Instalment100%

For taxpayers under sections 44AD and 44ADA (Presumptive Income), advance tax must be paid by 15th March 2025. Payments made by 31st March will still be treated as advance tax.

Read More:Understanding Form No. 10F: A Guide for Non-Residents (NRIs) Under the Income Tax Act

Staying compliant with the ITR deadlines helps avoid penalties, ensures smoother processing of returns, and allows you to claim applicable benefits. Whether you’re a salaried individual, business owner, or involved in international transactions, mark these key dates to meet your tax obligations on time.

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GST Registration under the Goods & Services Tax Act

GST Registration under the Goods & Services Tax Act

The Goods and Services Tax (GST) is a crucial aspect of India’s taxation system, and businesses need to adhere to its regulations. One of the first steps is GST registration, which is mandatory for entities meeting specific criteria. This process is outlined under Chapter III of the Central Goods and Services Tax (CGST) Act, 2017, and its corresponding rules.

When Is GST Registration Required?

Any individual or entity liable for GST must apply for registration within 30 days of becoming liable. The criteria for registration are based on the annual turnover of the business, which can be Rs. 10 lakh, Rs. 20 lakh, or Rs. 40 lakh, depending on the state or type of business.

Some businesses are required to register under GST regardless of turnover, such as those involved in inter-state supply, e-commerce, or those required to deduct or collect tax at source.

Steps for GST Registration

The registration process is straightforward and can be completed online through the GST portal without visiting a government office. Here’s a simplified step-by-step guide:

Filing Part A of Form GST REG-01:

  • Visit the GST portal and select “New Registration” under the registration tab.
  • Provide basic details like PAN, mobile number, and email address. After verifying these details, a Temporary Reference Number (TRN) will be issued.

Submitting Part B of Form GST REG-01:

  • Using the TRN, complete the application by submitting Part B of the form along with required documents, such as proof of business, address, and identity.
  • This form must be signed and verified digitally.

Review by Central Processing Cell (CPC)

  • After submission, the CPC will review the application. If everything is in order, the registration will be approved within seven working days. If additional information is needed, a notice (Form GST REG-03) may be issued for clarification.

Issuance of GSTIN

  • Once the application is approved, a GST Registration Certificate (Form GST REG-06) and a unique Goods and Services Tax Identification Number (GSTIN) will be issued.
  • The applicant must also furnish their bank account details within 30 days of receiving the GSTIN.

Special Rules for Non-Resident and Casual Taxable Persons

Non-residents and casual taxable persons must register at least five days before starting their business activities in India. These individuals must submit Form GST REG-09 and make an advance tax deposit before registration.

Multiple Locations and Separate Registrations

Businesses with multiple locations within a state or union territory may require separate registrations for each place of business. However, specific conditions apply, such as ensuring that each place of business adheres to the same tax structure. Each location must also pay taxes on inter-branch supplies and issue proper invoices or bills of supply.

Physical Verification of Business Premises

In some cases, the proper officer may require physical verification of the business premises before granting registration. A physical verification report must be submitted within 15 days, including photographs and relevant documents.

Cancellation, Amendment, and Extension

Once registered, businesses can apply for cancellation, amendment, or extension of their GST registration under specific scenarios. Forms like GST REG-14 (for amendment) or GST REG-16 (for cancellation) are available on the GST portal for these purposes.

Read More: Section 43B(h) : Applicability, Time Limit, Disclosure & External Confirmation for MSE Payments

Penalties for Non-Compliance

Failure to register under GST when required can lead to penalties. For businesses that don’t complete the registration process on time, the penalty is either 10% of the tax due or Rs. 10,000, whichever is higher. In cases of deliberate tax evasion, the penalty can go up to 100% of the tax due.

GST registration is an essential requirement for businesses that meet certain criteria under the Goods and Services Tax Act. The process is straightforward and can be completed online, making it easier for businesses to comply. Remember, timely registration is crucial to avoid penalties and ensure smooth business operations under the GST regime.

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Startup vs MSME: What’s the Difference?

Startup vs MSME: What's the Difference?

The Government of India plays a pivotal role in promoting both Startups and MSMEs (Micro, Small, and Medium Enterprises), recognizing their importance in fostering entrepreneurship and economic growth. However, the distinction between the two can often be confusing for aspiring entrepreneurs. Understanding their legal definitions, purpose, and the support they receive can help budding businesses choose the right path.

1. What is a Startup?

A Startup is typically focused on developing innovative, repeatable, and scalable business models. The key characteristic of a startup is its aim to bring about technological advancements, improve productivity, and create employment opportunities.

Legal Definition of Startup (as per the Ministry of Commerce and Industry, Govt. of India):

  • Incorporation: The entity must be registered as a Private Limited Company (PLC), Partnership Firm, or Limited Liability Partnership (LLP).
  • Turnover: The entity’s turnover should be less than Rs. 100 crore in any of the previous financial years.
  • Age: An entity is recognized as a startup for up to 10 years from the date of incorporation.
  • Purpose: The startup must focus on innovation, improvement of products, services, or processes with the potential to generate employment or wealth. Any entity created by splitting or restructuring an existing business will not be considered a startup.

Startups are known for their disruptive ideas—solutions that improve how industries operate, influence consumer behavior, and even impact societal trends.

2. What is an MSME?

On the other hand, an MSME is more traditional in nature, focusing on providing known products or services to local markets. MSMEs are usually independently owned and operated businesses that prioritize profitability and stability over rapid scaling.

MSME Classifications:

  • MSMEs in India are categorized into two types:

    • Manufacturing Enterprises: These are involved in producing goods or products. The investment in plant and machinery ranges between Rs. 0 to Rs. 10 crore.
    • Service Enterprises: These are engaged in providing services. The investment in equipment ranges between Rs. 0 to Rs. 5 crore.

Registration and Benefits for MSMEs:

To receive the benefits offered by the government, businesses need to register as an MSME. The Ministry of Commerce supports MSMEs by providing access to:

  • Skill development and training programs
  • Medium and long-term loans
  • Working capital loans
  • Seed loans and bridge loans

These benefits are aimed at nurturing smaller enterprises by offering financial assistance and support in building capacity, upgrading technology, and sustaining business growth.

Key Differences Between Startup and MSME

AspectStartupMSME
PurposeFocuses on innovation and scalable business modelsFocuses on providing known products/services to local markets
Growth PotentialHigh-risk, high-reward with fast scalabilitySteady growth with stable operations
Legal StructurePrivate Limited, LLP, or Partnership FirmVaries, but usually smaller independent ownership
Age LimitRecognized for up to 10 yearsNo specific time limit
Turnover LimitLess than Rs. 100 croreVaries based on investment (Rs. 0 to Rs. 10 crore)
Innovation FocusMust work towards innovation or improvementInnovation is not a primary requirement
Government SupportFocused on promoting innovation and scalabilityFocused on providing financial assistance and stability

How to Start and Get Recognition?

For Startups:

To be recognized as a startup by the Government of India:

  1. Incorporate your business as a Private Limited Company, LLP, or Partnership Firm.
  2. Ensure your annual turnover is below Rs. 100 crore.
  3. Register through the Startup India portal to gain access to benefits like tax exemptions, intellectual property services, and government funding opportunities.
  4. The startup must be focused on developing innovative solutions or improving existing ones.

For MSMEs:

  • MSMEs need to register through the Udyam Registration portal to get an official recognition.
  • MSMEs benefit from a wide range of schemes that help in acquiring long-term loans, working capital loans, and access to subsidies for technological upgrades.
  • Depending on the sector, MSMEs can also avail training, skill development, and advisory services provided by the government.

Securing Loans and Financial Assistance

For Startups:

Startups often rely on external funding sources such as:

    • Angel Investors and Venture Capitalists (VCs) who provide seed funding in exchange for equity.
    • Government Grants and incentives under schemes like Startup India Seed Fund Scheme.
    • Bank Loans: Startups may also seek loans through traditional banking channels or special startup-focused programs.

Read More: Resolving Income Tax Disputes with the New e-Dispute Resolution Scheme (e-DRS)

For MSMEs:

MSMEs have access to multiple financial assistance programs such as:

    • Bank Loans: MSMEs can apply for loans through banks under the MSME Credit Guarantee Scheme.
    • Subsidized Loans: The government provides subsidized interest rates on loans for MSMEs under various schemes.
    • Schemes like CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) offer collateral-free loans for eligible MSMEs.

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