INCOME TAX
FIVE CONSEQUENCES OF FAILING TO FILE YOUR TAX RETURN BEFORE JULY 31
Published By Moushumi Mahanta | 29 Jul, 2024
The July 31 deadline for filing ITR for FY 2023-24 is unlikely to be extended, as similar expectations last year were unmet.
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Taxpayers should be aware that the deadline is firm and plan accordingly.
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Here’s what will happen if you miss the July 31 tax deadline:
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Loss of Old Tax Regime Benefits
Missing the July 31 deadline shifts you to the new tax regime, which lacks the exemptions and deductions available under the old regime.
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Late Filing Fee
A late filing fee of
₹
5,000 applies after July 31, reduced to
₹
1,000 if income is below
₹
5 lakh, plus interest on outstanding tax at 1% per month.
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No Carry Forward of Losses
Missed deadlines prevent you from carrying forward investment or business losses to offset future income, increasing future tax liability.
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Higher Taxes Under New Regime
An automatic shift to the new tax regime may result in higher taxes due to the absence of deductions and exemptions available under the old regime.
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Potential Increased Tax Cost
Failure to file on time could result in a higher tax burden with additional interest charges, as taxpayers may face a costlier tax situation.
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