Penalty for Late Filing of Income Tax Returns (ITR) in 2024

Written by : Knowledge Centre Team

2024-08-02

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The financial year 2024 is about to end, and you should update yourself for the Income Tax Return (ITR) filing dates for Assessment Year 2024-25. You need to file ITR with the income tax department at the end of each financial year. The income tax department has defined the last date before you can file the return without paying any late fees. The last date is known as the due date of filing ITR.

When to File your ITR for FY 2023-24?

You can check the below table and know the due date depending on your category.

Type of Assessee	Due Date FY 2023-24
Individual & HUF	Non-Audit Cases (Individuals, professionals, small businesses etc)	31 July 2024
	Working Partner of a Firm or LLP whose audit is required u/s 44AB	31 October 2024
	Non-Working Partner	31 July 2024
	Audit Cases	31 October 2024
Firm, LLP, AOP, BOI, AJP, Local Authority, Co-operative society
	Audit Cases	31 October 2024
	Non-audit cases	31 July 2024
Company	All companies	31 October 2024
Trusts, colleges, political parties	Trusts, colleges, political parties, etc. who are required to file their return u/s 139(4A), 139(4B), 139(4C) or 139(4D) [ITR-7]	31 October 2024

* Audit report, in any case, should be filed by 30 September 2024

Which ITR Form you should File?

The income tax department has notified seven different forms. You should file the correct ITR form on or before the specified due date. The ITR form you need to file depends on your income source, the amount you have earned in a financial year, and the taxpayer category you fall in - HUF, company, etc.

ITR-1:

You should use this form to file ITR if your total income includes:

Income from pension or salary
Income from one house property (if you bring the loss forward from previous years, it is not included)
Income from other sources (excluding winning amount from horse race or lottery)
Agricultural income up to Rs 5000

ITR 2:

It is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for a financial year include:

a) Income from salary/pension, or

b) Income from house property (rental income)

c) Income from other sources, including winning from lottery and income from race horses

Also, your income from the above sources should be more than Rs 50 lakh.

ITR-3:

You can use this form if you have income from a proprietary business or are carrying on a profession.

ITR-4:

Individuals, HUFs, and Partnership firms (other than LLPs) whose income include:

a) Business income according to the presumptive income scheme under section 44AD or 44AE

b) Professional income according to presumptive income scheme under section 44ADA

c) Income from salary or pension up to Rs 50 lakh

d) Income from one house property, not more than Rs 50 lakh

e) Income from other sources having income not more than Rs 50 Lakh

ITR-5:

It is for firms, Association of Persons (AOPs), Limited Liability Partnership (LLPs), Body of Individuals (BOIs), Estate of deceased, Estate of insolvent, Artificial Juridical Person (AJP), Business trust and investment fund.

ITR-6:

This form is for companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes). This return can be filed only electronically.

ITR-7:

It is for persons, including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

Penalties for Filing ITR Late

In the recent Union Budget, the government has introduced a strict timeline for filing ITR. You are not allowed to file ITR beyond the end of an Assessment Year. If you file ITR beyond the due date, you will have to pay a fine. Below are the rules around penalties:

a) If you file a return after the due date but of an AY, you will have to pay Rs 5000 as a penalty.

b) If the tax payable is Rs 10,000 or above, you need to pay interest at a monthly rate of 1% on the outstanding tax payable starting from April of an AY till July. Between August and March of the AY, the monthly interest rate will increase to 2%.

c) If you fail to file your return within an AY, you can file it in the next two AYs, along with heavy interest and fines.

d) If the return is filed within 12 months from the end of the AY, you will have to pay an additional 25% on the total amount of outstanding tax payable and the amount of interest accumulated on it.

The penalties are heavy if you fail to file ITR on time. Hence, you never miss filing ITR before the due date.

How to Reduce your Tax Liabilities?

If you are paying high taxes for a financial year, you should plan to reduce your tax liability. You can reduce your direct tax expense, through deductions available under sections 80C and D. Section 80C allows certain expenses and investments you can claim deduct from your gross total income.

Type of Assessee	Due Date FY 2023-24
Individual & HUF	Non-Audit Cases (Individuals, professionals, small businesses etc)	31 July 2024
	Working Partner of a Firm or LLP whose audit is required u/s 44AB	31 October 2024
	Non-Working Partner	31 July 2024
	Audit Cases	31 October 2024
Firm, LLP, AOP, BOI, AJP, Local Authority, Co-operative society
	Audit Cases	31 October 2024
	Non-audit cases	31 July 2024
Company	All companies	31 October 2024
Trusts, colleges, political parties	Trusts, colleges, political parties, etc. who are required to file their return u/s 139(4A), 139(4B), 139(4C) or 139(4D) [ITR-7]	31 October 2024

The majority of the tax-saving investments are either important for your life or help achieve an important life goal. For example:

1. Term Insurance Plan

You can buy a term insurance plan to provide life cover, and the premium you pay towards the insurance plan is eligible for a tax deduction. Canara HSBC Life Insurance iSelect Smart360 Term Plan comes with additional benefits like the return of premium and in-built protection options against critical illnesses.

2. Unit Linked Insurance Plans (ULIPs)

ULIPs are a good option if you want to grow your capital aggressively, get a life cover, and save taxes.

3. Guaranteed Savings Plan

You need a guaranteed amount at maturity for your long-term goals. Canara HSBC Life Insurance Guaranteed Savings Plan provides a guaranteed sum at maturity with tax benefits.

4. Health Insurance

You can invest in Canara HSBC Life Insurance Health First plan and get health coverage that provides you cover against minor conditions of Cancer or Heart Ailments. The premium you pay is eligible for a tax deduction.

If you don't want to make any investment to reduce your tax liabilities, you can opt for a new tax regime. The tax rates are lower in this regime, and you will pay lower taxes.

Tax planning is a must for every individual. As discussed above, if you miss filing ITR on time, the penalties are high. So, the first thing you need to ensure is that you file taxes on time.

Finally, reduce your tax liabilities by investing in tax saving options and avail of the deductions while meeting your long-term life goals.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

FAQs Related to Section 80GG

Adjusted total income is that part of your Gross Total Income for the financial year which excludes the following incomes:

a) Income received from a foreign company
b) Any income received as an NRI that is taxable at a special rate
c) Long-term capital gains of the financial year
d) Short-term capital gains that are taxable at 10% under section 111A
e) Deductions from gross total income under sections 80C to 80U except for 80GG

Yes, it applies to all categories of individual taxpayers including NRIs.

No, you cannot claim deduction under section 80GG if you are receiving a home rent allowance with the salary. Deduction under section 80GG is available only to those individual and HUF taxpayers who are either self-employed or not receiving HRA as part of the salary.

Paying rent for residential property allows you to avail of tax deductions either as HRA or under section 80GG. While deduction for HRA is available based on the allowance received and rent paid, section 80GG is available to you when you do not receive HRA but live on rent. Section 80GG deduction is limited to the minimum of the following three:

a) Rs 5000 per month or Rs 60,000 for the financial year
b) Rent paid over 10% of Adjusted Total Income
c) 25% of the Adjusted Total Income

Yes, you can claim a deduction under section 80GG while staying with your parents. However, you need to meet the following conditions:

a) There is a rent agreement between you and your parents
b) You are paying rent to your parents which they show as income in their ITRs for the relevant financial years

Filing ITR for Incomes Below 2.5 LPA

5 Tips to Consider while Tax Planning in 2024

Tax Savings - Top Selling Plans

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