Today, November 15, 2024, marks the final day for certain taxpayers, including corporate entities and individuals undergoing audit, to file their Income Tax Returns (ITR). Missing this deadline could lead to penalties, interest charges, and other financial consequences.
Who Needs To File Today?
The November 15 deadline applies to the following groups:
Corporate Entities
All Indian companies and foreign companies with taxable presence in India must file by today.
Taxpayers Undergoing Audit
Individuals or entities whose accounts require auditing under the Income Tax Act or other applicable laws must submit their returns today.
Partners In Audited Firms
This includes partners in firms that require an audit, along with their spouses in certain cases under Section 5A of the Income Tax Act.
Tax Audit Report Submission
Taxpayers who are required to undergo an audit must also submit their tax audit report before filing their ITR. The report includes essential details such as the submission date and acknowledgment number, which are necessary for ITR submission. Failing to submit this report means you cannot file your return.
Consequences of Missing The Deadline
If you miss today’s deadline, you can still submit a belated return by December 31, 2024, but it will come with penalties:
Late Filing Fees
Ranging from Rs 1,000 to Rs 5,000 depending on your income.
Interest Charges
Under Sections 234A and 234B, you will incur interest on any unpaid tax amounts.
Forfeiting Loss Carry Forward
– If you miss today’s deadline, you lose the option of carrying forward any current fiscal year’s losses.
– Additional Penalties for Delayed Tax Audit Report
Failing to submit the tax audit report on time could result in additional penalties, such as:
– A fine of Rs 1.5 lakh or 0.5 per cent of total sales, whichever is lower.
– Since the ITR filing relies on this audit report, it is essential to complete the audit before submitting the return.
No Further Extensions Likely
Originally, the deadline for filing was set for October 31, 2024, but it was extended to today, November 15. Further extensions are unlikely, so it’s critical to file today to avoid penalties.
Special Considerations For Transfer Pricing Cases
If you have international or specific domestic transactions, you have until November 30, 2024, to file your ITR. However, you must first submit a Transfer Pricing Audit Report (Form 3CEB), which is due on October 31, 2024. Penalties for missing the Form 3CEB submission include:
– 2 per cent of the transaction value for international transactions with related parties.