Missed ITR filing deadline? Essential things to know about belated income tax return

ITR Filing Deadline Missed: The deadline for filing Income Tax Returns (ITR) for the financial year 2023-24 and the assessment year 2024-25 was July 31. Over 50,000 taxpayers had filed their ITR on the last date, however, many have not filed their returns yet. Some believe that if they do not have any tax liability then they do not need to file ITR. While some have not filled the form due to misunderstandings. This happens due to lack of correct knowledge of income tax rules. Here are the essential things one should know about belated income tax returns:

Who Needs to File ITR?

Anyone whose income exceeds the tax exemption limit is required to file an ITR. Under the old tax regime, income up to Rs 2.5 lakh is exempt, while under the new tax regime, the exemption is up to Rs 3 lakh. If your income surpasses these limits, filing an ITR is mandatory.

Rebate Under Section 87A

If your income is up to Rs 5 lakh under the old tax regime or Rs 7 lakh under the new tax regime, you are eligible for a rebate under Section 87A, which can reduce your tax liability to zero. However, to claim this rebate, you must file your ITR.

Penalties for Late Filing

If you missed the 31st July deadline, you can still file a Belated ITR, but a penalty will apply. For taxable income under Rs 5 lakh, the penalty is Rs 1,000. For income above Rs 5 lakh, the penalty is Rs 5,000. It should be noted that penalties apply even if you have no tax liability.