Tax return alert: 4 deadlines that you should take note of before December 31

Income Tax Return Filing: December 31, 2024, marks the final deadline for submitting belated and revised income tax returns for the financial year 2023-24 (Assessment Year 2024-25). While different taxpayer categories have their own specific Income Tax Return (ITR) filing deadlines, this ultimate date for belated and revised returns remains constant. It is crucial for taxpayers to comprehend the repercussions of failing to meet the submission deadline of December 31, 2024, for the financial year 2023-24.

If a taxpayer neglects to submit their income tax return by the specified due date or within the timeframe mentioned in a notice from the assessing officer, they will need to file a belated return. Should there be any errors, omissions, or inaccuracies noted by the taxpayer, a revised return can be submitted.

Filing an income tax return after the due date (July 31 for salaried individuals and senior citizens) incurs a penalty according to Section 139(4) of the Income Tax Act. This penalty amounts to Rs 5,000 and must be settled regardless of any outstanding tax dues.

For taxpayers whose taxable income falls below a specified threshold, a reduced penalty of Rs 1,000 applies. However, if the taxable income is below the basic exemption limit of Rs 3 lakh, no penalty is imposed for late filing.

It’s important to note that when filing a late return for the fiscal year 2023-24, opting for the previous tax regime is no longer an option. As of April 1, 2023, the default tax regime has shifted to the new system, meaning that any delayed returns for FY 2023-24 must be submitted under the new tax framework.

The Old Tax Regime allowed access to various deductions and exemptions that are unavailable under the new system. These allowances significantly help in reducing the taxpayer’s taxable income and, therefore, their overall income tax liabilities.

In the new tax regime effective for the financial year 2023-24 (Assessment Year 2024-25), only two deductions are permitted: a standard deduction of Rs 50,000 and the employer’s contribution to the National Pension System (NPS) up to 10% of the basic salary. Notably, traditional deductions under Sections 80C, 80D, and HRA tax exemption do not apply in this new tax structure.

Revised ITRs

Taxpayers have the ability to submit a revised tax return to correct any mistakes found in their original or late filings. The revised return facilitates necessary corrections to errors in Income Tax Returns (ITR), such as omitted income, missed deductions, or undisclosed bank accounts.

If the deadline for filing a corrected return is missed, the taxpayer will not be allowed to do so for that specific assessment year, which also means forfeiting any potential refunds or the ability to offset losses through a revised return. While changes to a return are permissible under income tax regulations, it is essential to note that adjustments cannot lead to increased refunds, reduce the originally reported tax liability, or introduce losses on the return.

Reporting of Foreign Income or Assets

Taxpayers with foreign income or assets must disclose them by December 31, 2024, to avoid penalties under the Income Tax and Black Money Acts. The tax department has provided a public advisory to help taxpayers meet this requirement. The advisory specifies foreign assets for Indian tax residents as including bank accounts, cash value insurance contracts, annuity contracts, financial interests in entities or businesses, real estate, custodial accounts, shares and bonds, trusts where the individual is a trustee, beneficiary, or settlor, accounts with signing authority, and any other capital assets held abroad.

The department stresses that taxpayers falling under these criteria “must” complete the Foreign Asset (FA) or Foreign Source Income (FSI) schedule in their Income Tax Return (ITR), even if their income is below the taxable limit or if the foreign asset was acquired using declared sources.

Foreign income and assets encompass various categories, such as Foreign Bank Accounts, Foreign Equity and Debt interests, financial interests in any entity or business, real estate, other capital assets, beneficial interests in foreign assets, and more.

Foreign income consists of revenue from international sources, including interest, dividends, gross proceeds, redemptions, and other income types.

Direct Tax Vivad Se Vishwas Scheme

Taxpayers dealing with income tax disputes are encouraged to leverage the Direct Tax Vivad Se Vishwas Scheme by the deadline of December 31, 2024. This initiative, introduced in Budget 2024, facilitates the settlement of outstanding tax disputes with the Income Tax Department by allowing taxpayers to pay a reduced disputed tax amount.

To benefit from the scheme, taxpayers need to remit the disputed tax amount alongside a specified percentage of this amount, in addition to the disputed tax itself. After depositing the necessary tax amount and submitting the application form, the income tax department will forgo any additional penalties and penal interest, effectively closing the tax dispute case.

Taxpayers making a declaration by December 31, 2024, are required to pay 100% of the disputed tax demand, with interest and penalties waived in these instances. If the declaration occurs on or after January 1, 2025, the taxpayer must pay 110% of the disputed tax demand. Therefore, it is advisable for taxpayers to act swiftly and take advantage of this scheme prior to the deadline to enjoy the benefit of reduced tax payments.

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weekly corporate updates

  1. SEBI Updates:
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1SEBI Bulletin – December 2024 [MSExcel]   [Annexure Tables]Click Here
2Simplification of Offer DocumentClick Here
3Industry Standards on Reporting of BRSR CoreClick Here
4Policy for Sharing Data for the Purpose of Research / AnalysisClick Here
5SEBI issues directions to stock exchanges in Commodities Derivative SegmentClick Here
6SEBI Board MeetingClick Here
7ClarificationClick Here
8Measures to address regulatory arbitrage with respect to Offshore Derivative Instruments (ODIs) and FPIs with segregated portfolios vis-à-vis FPIs  Click Here
9Consultation paper on draft circular for “Service platform for investors to trace inactive and unclaimed Mutual Fund folios: MITRA (Mutual Fund Investment Tracing and Retrieval Assistant” Click here to provide your comments  Click Here
  10Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024Click Here
11Securities and Exchange Board of India (Research Analysts) (Third Amendment) Regulations, 2024Click Here
12Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2024Click Here
13Request for an interpretative letter in terms of SEBI (Informal Guidance) Scheme, 2003, received from Centbank Financial Services Limited (CFSL), SEBI Registered Debenture Trustee (DT)  Click Here
14Pro-rata and pari-passu rights of investors of AIFsClick Here
15Classification of Corporate Debt Market Development Fund (CDMDF) as Category I Alternative Investment FundClick Here
16Extension in timeline to submit comments on consultation paper on Review of Ownership and Economic Structure of Clearing Corporations Click here to provide your commentsClick Here
17Relaxation from the ISIN restriction limit for issuers desirous of listing originally unlisted ISINs (outstanding as on December 31, 2023)Click Here
18Extension in timeline to submit comments on consultation paper on Process for appointment of specific KMPs of an MII; and cooling-off period for KMPs and Directors of an MII joining a competing MII Click here to provide your commentsClick Here

2. MCA – 21 Updates

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1LinkedIn appeals corporate ministry’s order for SBO norms violation  Click Here
2MCA slashes penalty on iPhone maker Wistron  Click Here

                    3.  RBI / Banks Updates

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1Removal of supervisory restrictions: ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited                Click Here
2State Finances: A Study of Budgets of 2024-25       Click here
3612th Meeting of Central Board of the Reserve Bank of India        Click here
4RBI reveals top 100 wilful defaulters; 2,664 corporates owe Rs 1.96 lakh croreClick here
5RBI MPC Minutes: Economic slowdown warrants rate cut, argue two membersClick here

4. IBC / Insolvency Law updates

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  1Corporate Insolvency Resolution Processes Yielding Resolution Plans as on 30th September, 2024  Click here
  2Corporate Insolvency Resolution Processes Ending With Order of Liquidation as on 30th September, 2024  Click here
3Approval of Resolution Plan- SES Energy Services India Private Limited [IA No. 83 of 2024 in CP(IB) No.474 of 2022]Click here
4Approval of Resolution Plan- PAE Limited [IA (I.B.C)(Plan) No. 92/MB/2024 in CP(IB)No. 1074/MB/2023]Click here
5IBC amended six times to strengthen the process of Insolvency Resolution, more than 100 amendments in regulations by IBBI for the purposeClick here

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5. Labour law updates

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  1EPF fraud: Arrest warrant issued against ex-Indian cricketer Robin Uthappa over ₹24 lakh EPFO dues | Today NewsClick here
  2Smooth EPF transfer while changing jobs: How to seamlessly transfer your retirement savings online withoutClick here
  3Higher EPS pension: Check eligibility, application process, rejections and delays in processing of pension applicationClick here

6. Key Press information

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1Government initiatives in the realm of Alternative Dispute Resolution mechanismsClick here
2RBI Increases Collateral-Free Agricultural Loan Limit from ₹1.6 to ₹2 LakhClick here
3HPCL Signs Agreement with NLDS for Integration of API with Unified Logistics Interface Platform (ULIP)Click here
4Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices to promote indigenous manufacturing of medical devicesClick here
5Central Consumer Protection Authority (CCPA) issues notices to 45 coaching centers for misleading advertisement; imposes penalty of Rs 61,60,000 on 19 coaching institutesClick here
6CBDT launches Electronic Campaign to address income and transaction mismatches for FY 2023-24 and FY 2021-22Click here

7. IPO & investment Section

Issuer CompanyOpen DateClose DateListing DateIssue Price (Rs)Issue Size (Rs Cr.)Lot SizeExchange
Anya Polytech & Fertilizers Limited IPODec 26, 2024Dec 30, 2024Jan 02, 202513.00 to 14.0044.8010,000NSE SME
Solar91 Cleantech Limited IPODec 24, 2024Dec 27, 2024Jan 01, 2025185.00 to 195.00106.00600BSE SME
Unimech Aerospace and Manufacturing Limited IPODec 23, 2024Dec 26, 2024Dec 31, 2024745.00 to 785.00500.0019BSE, NSE
Senores Pharmaceuticals Limited IPODec 20, 2024Dec 24, 2024Dec 30, 2024372.00 to 391.00582.1138BSE, NSE
Carraro India Limited IPODec 20, 2024Dec 24, 2024Dec 30, 2024668.00 to 704.001,250.0021BSE, NSE
Ventive Hospitality Limited IPODec 20, 2024Dec 24, 2024Dec 30, 2024610.00 to 643.001,600.0023BSE, NSE
Transrail Lighting Limited IPODec 19, 2024Dec 23, 2024Dec 27, 2024432838.9134BSE, NSE
Sanathan Textiles Limited IPODec 19, 2024Dec 23, 2024Dec 27, 2024305.00 to 321.00550.0046BSE, NSE
DAM Capital Advisors Limited IPODec 19, 2024Dec 23, 2024Dec 27, 2024283840.2553BSE, NSE
Newmalayalam Steel Limited IPODec 19, 2024Dec 23, 2024Dec 27, 20249041.761,600NSE SME
Concord Enviro Systems Limited IPODec 19, 2024Dec 23, 2024Dec 27, 2024665.00 to 701.00500.3321BSE, NSE
Mamata Machinery Limited IPODec 19, 2024Dec 23, 2024Dec 27, 2024243179.3961BSE, NSE
Identical Brains Studios Limited IPODec 18, 2024Dec 20, 2024Dec 26, 20245419.952,000NSE SME
NACDAC Infrastructure Limited IPODec 17, 2024Dec 19, 2024Dec 24, 20243510.014,000BSE SME

(Source: Chittorgarh.com)

8. irdai – insurance updates

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1GST council defers tax cut on insurance premiums as Nirmala Sitharaman awaits IRDAI feedbackClick here
2Irdai’s move to limit banca biz may stifle insurance sector growth: EmkayClick here
3Religare arm Care Health Insurance receives IRDAI show-cause noticeClick here
4IRDAI likely to bring norms to reduce bancassurance with parent bankClick here

9. Department of Telecommunications (dot)

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1C-DOT and Trois Infotech Sign Agreement to Develop “Face Recognition Using Drone” Under TTDF SchemeClick here
2DoT orders telcos to play cybercrime awareness caller tune 8-10 times a day for 3 monthsClick here
3Telcos to soon get bank guarantee waiver lettersClick here
4Telecom News: Latest Telecom Sector News, Telecom Industry News and UpdatesClick here

10. msme / SME updates

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1Collateral, delays and risk: The credit woes of MSMEsClick here
2Govt encouraging MSMEs: TammireddyClick here
3High interest rates deterrent for MSME exporters; working with FinMin: DGFTClick here

11. Competition Commission of India (CCI)      

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1CCI issues cease and desist order against the Table Tennis Federation of India and its affiliate bodies ; decides against imposing any monetary penalties  Click Here
2CCI approves the acquisition of certain stake of Speed JVco S.à r.l. (Target) by Ramon Investments Pte. Ltd. (Acquirer)Click Here
3CCI approves UltraTech Cement Limited’s acquisition of The India Cements LimitedClick Here
4CCI raids Budweiser maker AB InBev’s Hyderabad office for alleged collusion with retailers | Company Business NewsClick Here

12. Cabinet Decisions / New Acts

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1Central Consumer Protection Authority Issues 17 Notices to Non-Compliant Direct Selling EntitiesClick Here
2“MUSEUM GRANT SCHEME”.Click Here
3Government Initiatives for the Promotion of BiofuelsClick Here
4Government  taking several steps to ensure that access to safe water and sanitation does not become a barrier for women’s mobility and developmentClick Here

13. Current Affairs Quiz (taken from various sources) 

Sl.Questions  Answers  
1India’s first diabetes biobank has been established in which city?Chennai
2Which country won the Women’s Hockey Junior Asia Cup 2024?India
3Kaleshwaram Lift Irrigation Scheme (KLIS) is associated with which state?Telangana
4Mikheil Kavelashvili was elected as the new President of which country?Georgia
5The Konda Reddi tribe is primarily found in which state?Andhra Pradesh
6What kind of disease is idiopathic pulmonary fibrosis (IPF)?Lung disease
7Which day is celebrated as Minority Rights Day?December 18
8Which country has developed an mRNA vaccine for cancer patients?Russia
9International Human Solidarity Day is observed annually on which day?December 20
10Orans are traditional sacred groves found in which state?Rajasthan

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Disclaimer: This write – up is prepared as a Knowledge Sharing Initiative. *Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.