According to the CBDT’s latest notification on 25th October 2024, the due date to file ITR for fiscal year 2023-24 and assessment year 2024-2025 has been extended from October 31st to November 15th of 2024, providing an additional 15 days for compliance. This means taxpayers have more time to pay the tax without facing penalties.
The Central Board of Direct Taxes (CBDT) has extended the due date of furnishing of Return of Income under Sub-section (l) of Section 139 of the Act for the Assessment Year 2024-25, which is 31st October 2024 in the case of assesses referred in Clause (a) of Explanation 2 to sub-section (l) of Section 139 of the Act, to 15th November 2024 (as read in circular). However, the deadline for the Tax Audit Report, transfer pricing certification (Form 3CEB), and other forms like Form 10DA remain the same i.e., October 31st, 2024.
To Whom the Extended Deadline is Applied?
The extended deadline applies to the following;
- Companies
- Persons (other than companies) subject to tax audit
- Partners in a firm that is liable for tax audit
Various taxpayers have shared their thoughts on the extension of the deadline and the implications of this decision. Nangia Andersen LLP Tax Partner Sandeep Jhunjhunwala pointed out that the extension of ITR Filing is of benefit but only applies to the returns. It is required to submit important audit documents on time. Extra time to ensure compliance is good but it doesn’t change the fact that it is a requirement to submit other important paperwork by the original deadline.
Rajat Mohan, a Senior Partner at AMRG & Associates stated that although CBDT has not provided a specific reason for the extension, it is due to the festive season coming up. Taxpayers, without worrying and rushing for the last-minute return filing, can prioritise their filings properly along with compliance in between the festivals.
The extension in this busy time of the year all over India aims to ease compliance, support businesses, and still ensure the submission of essential documentation on time. The extension is influenced by the government`s decision of the previous year where the due date for filing tax audits was extended by a week to October 7.
Understanding ITR Filing
ITR is a form submitted by a taxpayer to the Income Tax Department which contains the details of income and tax payments. ITR must be filed by every individual who earns before a specified due date.
A record-setting number of income-tax returns has been filed in India this year. ITR filing has reached a new level this year with 7.28 crore people filing an ITR by 31ST July 2024. The rise in the number shows that people are taking the tax rules seriously and becoming part of the formal economy.
Talk To Expert
Govt Extends ITR Filing Deadline for Corporates by 15 Days
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Government Initiatives/ Campaigns for ITR Filing
The government has taken several initiatives to encourage every individual to file their ITR. Some of the initiatives are listed below;
E-assessment Scheme– The faceless assessment was introduced on 13th August 2020 to update the tax assessment system by eliminating face-to-face human interference. Promoting fairness, minimizing biases, and providing transparency through online procedures.
PMJDY– The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government scheme that helps people an easy access to financial services. This allows the government to track the financial activities of an individual and collect taxes.
Vivad Se Vishwas Scheme- The scheme was launched to help people solve their tax disputes. This further reduces litigation and penalties and makes the resolution process simpler and cheaper.
DIN- Document Identification Number helps to verify if the document is from an authorized source. This aims to make the tax filing secure and efficient for everyone.
Benefits of ITR Filing
Legal Compliance- While adhering to the laws, you will be safe from penalties and legal issues.
Financial Benefits- One can always file for a return in case an extra amount has been deposited, and filing returns makes it easy to secure loans and credit.
Proof of Income- There are several situations where proof of income is needed to be shown. E.g., Loan application and visa processing. Here, tax filing is necessary.
Tax Benefits- Filing ITR always comes with a tax benefit. You can always claim deductions/exemptions that reduce your taxable income.
Avoiding Scrutiny- Filing ITR timely will avoid the interference of tax authorities for investigation purposes.
Legal Protection- One will always be protected by the documents of tax filing as proof in case they get into any discrepancies relating to income tax.
Economic Contribution– Tax is the main source of revenue to the government. When you’re paying the tax, you’re directly involved in the country’s economic growth.
Importance of the ITR Filing Deadline
It is very important to file the ITR before the deadline. The sooner you file your ITR, you benefit from it. Some benefits of filing the ITR before deadlines are; a faster refund process, minimized risk of error, avoided penalties, etc.
The penalty for missing an ITR filing deadline is Rs 1000 if your net taxable income is less than Rs,5Lakhs and Rs,5000 if your net taxable income is more than Rs 5 Lakhs. Non- Filing of ITR leads to prosecution.
Delays/non-filing in Tax returns also affect a corporation’s creditworthiness.
Case Laws
Sasi Enterprises vs. Assistant Commissioner of Income Tax (2014)
In this case, a business called Sasi Enterprises was in a dispute with tax officials. The validity of the expenses claimed in their tax filing was in question. The court reviewed the evidence from both sides. The court held the decision in Sasi`s favour, allowing the deductions claimed, which lowered the amount of tax they had to pay.
This highlights the importance of filing ITR correctly and maintaining the documentation and records to justify their assessments in case of need.
6-month Jail Term for Delhi Woman for Failing to File ITR on Rs 2 Crore Income
A woman named Savitri in Delhi was sentenced to jail for 6 months for not filing an ITR. She had an income of Rs 2 crore and Rs. 2 lakhs taken out for tax in 2013-14. Despite getting the notices to file the ITR for the year 2014-2015, she failed to do so. This act led her to prosecution, where she was held guilty and sentenced to six months in jail along with a fine of Rs. 5,000. However, the court allowed her 30 days to appeal, considering her condition as an uneducated widow with no support.
This shows how seriously the tax matters are taken irrespective of any reason.
To Wrap Up
As the government has extended the ITR filing deadline, corporates are in a happy space. The new deadline for Assessment Year 2024-25 (for furnishing tax returns for fiscal 2023-24) is November 15. To get expert assistance in ITR filing, visit https://corpbiz.io/.
Frequently Asked Questions
What is the new deadline for filing ITR for corporations?
The new deadline for filing Income Tax Returns (ITR) for corporations for the assessment year 2024-25 has been extended from October 31, 2024, to November 15, 2024.
Why was the ITR filing deadline extended?
The Central Board of Direct Taxes (CBDT) extended the deadline to provide taxpayers with more time for compliance, especially during the busy festive season. This helps businesses prioritize their filings without last-minute stress.
Do I still need to submit my Tax Audit Report by October 31, 2024?
Yes, the deadline for submitting the Tax Audit Report, transfer pricing certification (Form 3CEB), and other related forms remains October 31, 2024.
What are the penalties for not filing an ITR on time?
The penalties for not filing ITR on time depend on your net taxable income. If your net taxable income is less than Rs. 5 lakhs, the penalty is Rs. 1,000; if more than Rs. 5 lakhs, it’s Rs. 5,000. Non-filing can also lead to prosecution.
Is it necessary to file an ITR if I have no taxable income?
If your income falls below the taxable limit, you may not be required to file, but doing so can help establish a record for future transactions, like applying for loans.
How long does it take to get a tax refund?
Tax refunds are typically processed within a few weeks to a few months after filing. The duration depends on the time ITR is filed, the complexity of the return, and the efficiency of the tax department.
Read more Blogs: Income Tax Returns: Which is the Correct ITR Form for you?
