The last date for filing belated income tax returns (ITR) and GST returns is December 31.
Any eligible individual has at least two options to file ITR: one by the due date and another post-due date on or before December 31, but with belated fee. However, if an assessee forgets to add any income in the filed ITR, they can file an updated return with some payout within 2 years from the end of the relevant assessment year.
For example, the due date of filing ITR for Ay 2024-25 for an individual (whose books of accounts are not required to be audited) was July 31, 2024. But they can file a belated ITR with a penalty between ₹1,000-5,000 by December 31. However, if your gross income is less than the basic exemption limit, you will not be required to pay any penalty. Also, an updated return can be filed till March 31, 2027. Anyone with an income of more than ₹2.5 lakh (under the old tax regime) or ₹3 lakh (under the new tax regime) must file ITR.
In case one is filing belated return (on or before December 31 and after the due date), they will not be able to carry forward and set off these losses against future profits. However, they can carry forward the losses relating to house and property. If tax is due on April 1, then an interest of 1 per cent per month on the outstanding tax amount will be levied. This interest is calculated from the date of filing return for the relevant financial year till the due date.
TDS rates for non-filers
There will be higher rate of TDS (Tax Deducted on Source) and TCS (Tax Collected at Source) for non-filer recipient. Rate in such a situation would be twice the rate given in the Income Tax Act or Finance Act or 5 per cent, provided the non-filer recipient has a PAN. In case PAN is not provided by such a recipient, then the rate would be 20 per cent or higher.
Under section 276 CCC of the Income Tax Act, an assessee can be prosecuted for for failing to file ITR. If an eligible assessee fails to furnish ITR and the income tax liability is more than ₹25,000, then they will be punishable with rigorous imprisonment for a minimum of 6 months up to 7 years, and with a fine.
GST annual return
December 31 is also the due date for filing the annual GST return. Every GST-registered taxpayer whose annual turnover is more than ₹2 crore must file GSTR-9 annually. It is optional for the rest of the taxpayers. Assessees with an annual turnover more than ₹5 crore is also required to file GSTR-9C along with GSTR-9. GSTR-9C is the annual reconciliation statement and it must be self-certified. Late filing of these forms will result in fine.
