Income Tax Alert: Revised ITR Filing Due Date Extended to 15th January 2025

Introduction

The Central Board of Direct Taxes (CBDT) has issued a crucial update for taxpayers regarding the filing deadlines for belated and revised income tax returns (ITRs) for the Assessment Year (AY) 2024-25. As per a circular dated 31st December 2024, the due date has been extended from 31st December 2024 to 15th January 2025 for specific resident individual cases. This extension ensures that eligible taxpayers have more time to fulfill their compliance obligations without penalties.

Background of the Extension

The Income-tax Act, 1961, provides two important mechanisms for taxpayers to rectify or comply after the original due date:

1. Belated Return (Section 139(4)): Allows taxpayers who missed the original deadline to file their returns.
2. Revised Return (Section 139(5)): Permits corrections or modifications to previously filed ITRs.

Under normal circumstances, these returns must be filed by 31st December of the relevant assessment year. However, in certain cases, the CBDT exercises its powers under Section 119 of the Act to extend this timeline, as seen in this latest notification.

Key Highlights of the CBDT Circular

Who Does This Apply To?

The extension applies exclusively to resident individuals who are eligible to file belated or revised ITRs for AY 2024-25. It’s important to note that this relief is not universal but limited to cases outlined in the circular.

Why Was the Deadline Extended?

While the CBDT has not specified detailed reasons, extensions often occur due to:

• Systemic glitches on the Income Tax portal.
• Increased volume of last-minute filings.
• Representation from taxpayers and industry bodies.

What Is the New Deadline?

The revised timeline allows eligible individuals to file their belated or revised returns up to 15th January 2025 without incurring penalties for late filing.

Steps to File Belated or Revised ITR

If you fall under the eligible category, here’s how you can file your belated or revised ITR:

1. Log in to the Income Tax Portal: Visit https://www.incometax.gov.in and log in using your PAN/Aadhaar credentials.
2. Select the Appropriate Section:
   • For belated returns, choose Section 139(4).
   • For revised returns, opt for Section 139(5).
3. Fill in the Details: Ensure accurate reporting of income, deductions, and other financial information.
4. Verify Your Return:
   • Use Aadhaar-based OTP, net banking, or other methods to complete verification.
5. Submit and Download Acknowledgment: After successful submission, download the ITR acknowledgment (Form V).

Benefits of Filing Within the Extended Timeline

• Avoid Penalties: Late filing fees under Section 234F can go up to ₹10,000 for delays beyond the extended deadline.
• Avail Tax Refunds: Timely filing ensures faster processing of eligible refunds.
• Rectify Errors: Taxpayers can correct any discrepancies in their original returns.

Relevant Case Laws

To understand the significance of filing within statutory deadlines, consider the following case laws:

1. Rajesh Jhaveri Stock Brokers Pvt. Ltd. v. CIT (2007): Highlights the importance of adhering to deadlines to avoid scrutiny under Section 143(2).
2. ACIT v. Triumph International Finance India Ltd. (2011): Reinforces the taxpayer’s right to rectify genuine errors through revised returns.

Expert Tips for Compliance

1. Double-Check Financial Data: Ensure all income sources and deductions are accurately reported.
2. Seek Professional Advice: If unsure about eligibility or processes, consult a tax expert.
3. Use Reliable Tools: Utilize government-authorized platforms or trusted software for filing returns.

Conclusion

The CBDT’s decision to extend the ITR filing deadline for AY 2024-25 provides significant relief to resident individuals requiring additional time for compliance. Taxpayers should seize this opportunity to meet their obligations and avoid penalties. As always, staying proactive and informed is key to hassle-free tax compliance.