The Central Board of Direct Taxes (CBDT) has granted an extension for resident individuals to file their belated or revised Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25. The original deadline of December 31, 2024, has now been extended to January 15, 2025. This extension provides taxpayers with an additional two weeks to complete or revise their tax filings, ensuring more flexibility for those who need extra time.
The CBDT officially announced this change through an update on X (formerly Twitter), stating, “CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from December 31, 2024, to January 15, 2025.” This modification has been implemented under the powers granted to the CBDT by Section 119 of the Income-tax Act, 1961, which allows them to provide such extensions when deemed necessary.
This extended deadline specifically benefits two groups of taxpayers. First, it helps individuals who missed the original July 31, 2024, deadline for filing their ITR. These individuals now have a chance to file a belated return by January 15, 2025. Second, it applies to taxpayers who need to make corrections or revisions to their previously filed returns. This gives them more time to submit a revised ITR that accurately reflects their income, deductions, and other details.
Under the current regulations, taxpayers who file belated returns are required to pay a late fee. For taxpayers with taxable income of less than ₹5 lakh, the late fee is ₹1,000. For those with taxable income exceeding ₹5 lakh, the late fee is ₹5,000. This structure aims to discourage delayed filings and encourage timely submissions of returns.
In practice, many taxpayers file revised returns due to errors or omissions in their original filings. These can include missing income details, incorrect deductions, or other minor mistakes. A revised return allows individuals to correct these errors, ensuring that they comply with tax laws and avoid facing penalties or additional scrutiny from the Income Tax Department. By submitting a corrected ITR, taxpayers also help avoid interest penalties that might be levied on any additional taxes owed due to underreporting of income.
Despite various efforts by the government to promote greater tax compliance, a significant portion of the Indian population continues to delay or neglect filing their tax returns. According to Minister of State for Finance Pankaj Chaudhary, only 6.68% of India's population filed ITRs for the fiscal year 2023-24. This statistic was revealed in a statement made to Parliament on December 17, 2024, in which Chaudhary noted that the total number of individuals filing ITRs during this period stood at 8,09,03,315.
The CBDT's decision to extend the filing deadline aims to offer relief to taxpayers who may have faced challenges meeting the original December 31 deadline. It also ensures that those who need to make amendments or updates to their returns have enough time to do so without feeling rushed. The extended deadline provides an opportunity for taxpayers to carefully review their filings, make necessary corrections, and ensure compliance with tax regulations without incurring penalties or missing the opportunity for refunds.
In addition, this extension is seen as a step toward reducing the burden on taxpayers who might have faced difficulties due to unforeseen circumstances, such as personal or financial challenges, or due to delays in receiving necessary documents. The government is likely hoping that the extra two weeks will encourage more taxpayers to meet their filing obligations, further improving compliance and the overall tax collection process.
By offering this window, the government is also attempting to streamline the process and minimize mistakes, making it easier for taxpayers to comply with the law and for the tax authorities to maintain accurate records. Moreover, it allows for greater flexibility, particularly for those who might have overlooked certain details in their returns or needed more time to finalize them.
As the January 15, 2025, deadline approaches, taxpayers are encouraged to take advantage of this extra time, ensuring that their filings are complete and accurate. By doing so, they can avoid complications, ensure a smooth process, and help contribute to India's broader tax base, which in turn supports national development efforts.
