Income Tax Return Filing Deadline Ends Today: 5 Consequences Of Missing The Deadline

The deadline for filing income tax returns (ITRs) is today, July 31. However, there could be dire consequences if you fail to file your ITR by the deadline on July 31. To avoid penalties and fines, it is therefore advisable that you file the IT return on time.

There are severe repercussions for missing the deadline, such as losing advantages under the old tax regime or having to pay a ₹ 5,000 late filing fee. Check out below what happens if you fail to file your taxes by the deadline of July 31.

Since the new tax regime is the default regime for the financial year 2023–2024, you will not be allowed to file your return under the old tax regime after the due date. In this scenario, under the old tax regime, you would not be eligible for exemptions and deductions for investments made in tax-saving instruments.

If you miss the deadline, you will be shifted to the default option which is the new tax regime. The advantages of the old tax system are not available under the new one, which could result in greater taxes.

You may choose to file a late return if your ITR is not filed by July 31. Under Section 234F of the Income Tax Act, late filing penalties of Rs 5,000 may be assessed. Should your earnings not surpass Rs 5 lakh, the late filing fees will amount to Rs 1,000.

The amount of unpaid taxes from the due date will be subject to interest charges at the rate of 1% every month or portion of the month; however, the penalty assessed cannot exceed the amount of unpaid taxes.

Taxpayers have the option to carry over losses from their investments in stocks, mutual funds, real estate, etc, and use those losses to offset income in future years. However, when they file the return after the deadline, this will not be allowed.