Good news for taxpayers who missed the July 31 deadline for filing income tax returns.
The Bombay High Court has directed the Central Board of Direct Taxes (CBDT) to extend the deadline for filing belated returns, which was originally set for December 31, 2024.
Order to Extend Deadline Until January 15
The Bombay High Court has directed the CBDT to extend the deadline for filing belated or revised income tax returns until at least January 15, 2025.
This gives taxpayers an additional two weeks to submit their returns. Let’s take a closer look at this update.
Court Order on PIL Hearing
The Bombay High Court issued this order following a Public Interest Litigation (PIL) filed by the Chamber of Tax Consultants.
The petition highlighted that changes in the ITR utility procedure had made it difficult for taxpayers to claim the rebate under Section 87A of the Income Tax Act, 1961.
What is Section 87A?
Under this section, a rebate of up to Rs 25,000 can be claimed under the new income tax regime and up to Rs 12,500 under the old regime.
In the old regime, individuals with an annual income of up to Rs 5 lakh can claim this rebate, while in the new regime, the rebate is available for taxpayers with an annual income of up to Rs 7 lakh.
What is belated ITR filing?
The Income Tax Department allows taxpayers who miss the July 31 deadline to file belated income tax returns for any reason.
Belated returns can be filed by paying a penalty and interest on the tax under section 139(4) of the Income Tax Act. The deadline for filing is December 31, 2024.
How much is the penalty?
Taxpayers with an annual income above Rs 5 lakh must pay a penalty of Rs 5,000, while those with an income below Rs 5 lakh must pay a penalty of Rs 1,000.
Following the Bombay High Court’s extension, belated returns can now be filed until January 15, 2025.
