The last day to file the Income Tax Returns (ITR) is July 31, this year and those who miss the deadline must know the consequences that can have serious results. People who fail to file the ITR by July 31 will be able to file a late return by December 31, 2024, but they will automatically be assigned to the new tax regime if they dont submit their Income Tax Return (ITR) by then.This implies that since you will be automatically enrolled in the new tax regime, you will not be able to choose the old system for the relevant financial year. There are two tax regimes in effect currently, the previous one and the new one that was implemented in 2020 and has updated tax slabs and reduced rates.Apart from this, the person will also be charged for the late fee and interest at the rate of 1% per month will be charged.Here are some of the consequences that you may face if you miss the Income Tax Return (ITR) filing deadline of July 31, 2024:Late Fee: The Income Tax Department may levy a late fee under Section 234F. The fee can be up to Rs 1,000 if the total income is up to Rs 5 lakh, or Rs 5,000 if the total income exceeds Rs 5 lakh.Interest Penalty: You may also be liable to pay interest on the tax due under Sections 234A, 234B, and 234C. This interest is calculated based on the delay in payment of taxes.Reduced Benefits: Filing late can limit certain benefits. For instance, you might not be eligible to carry forward certain losses (like capital losses) to future years, which could affect your tax planning.Legal Action: Persistent non-filing or failure to pay due taxes may lead to legal actions, including penalties and prosecution.Delay in Refund: If youre due a refund, filing late can delay the refund process.To mitigate these issues, you can file your returns as soon as possible after the deadline. Theres also an option to file a belated return under Section 139(4) before March 31, 2025, but it may come with additional penalties and limitations.
