ITR Filing Deadline Extended to January 15, 2025: Key Insights for Taxpayers

The deadline for submitting amended Income Tax Returns (ITR) has been extended by the Income Tax Department to January 15, 2025. For taxpayers, this is a relief, especially for those who were eligible for the tax refund under Section 87A but were turned down in July 2024. This guide will help you understand the implications, eligibility for amendments, and how to adhere to the updated filing requirements.

Principal Aspects of the Extended Deadline

• Due dates for ITR revisions have been moved to January 15, 2025, to accommodate taxpayers facing income adjustment and refund issues.
• Taxpayers eligible for the Section 87A rebate, which offers tax relief for incomes under ₹5 lakh, can now amend their returns.
• Special rate income adjustments, such as short-term capital gains, can also be corrected during this extension.

Who Is the Extension Beneficial For?

• Taxpayers Denied Section 87A Rebate: Amend errors in your returns and claim this rebate if missed.
• Special Rate Income Errors: Correct any mistakes related to short-term capital gains or other incomes taxed at special rates.
• Others Facing Calculation Mistakes: Revise errors in initial or earlier filings.

Understanding the Tax Rebate in Section 87A

Individuals with taxable incomes up to ₹5 lakh are eligible for a tax rebate of up to ₹12,500 under Section 87A. However, incorrect reporting or technical issues can lead to rebate rejection. The extension provides an opportunity to claim the rebate correctly.

How to Submit an Updated ITR

1. Log in to the Income Tax Portal: Visit the official Income Tax e-Filing Portal and log in.
2. Choose 'Revised ITR': Select the Assessment Year 2024–2025 under the ‘File Revised Return’ section.
3. Check Eligibility: Ensure your amendment relates to Section 87A errors or special rate incomes.
4. Recalculate Taxable Income: Use Form 26AS and AIS reports to verify incomes and deductions.
5. Submit and Verify: File the return and verify it via net banking, Aadhaar OTP, or other methods.

Common Mistakes to Avoid

• Inaccurate Income Declaration: Double-check all income sources like salaries, interest, and capital gains.
• Missed Deductions: Ensure all eligible deductions (e.g., Sections 80C, 80D, 80G) are claimed.
• Mismatch in TDS: Reconcile TDS with Form 26AS.
• Incorrect Bank Details: Provide accurate information for smooth refund processing.

Consequences of Missing the Updated Deadline

• Loss of Tax Benefits: Missed deductions and rebates.
• Penalties and Interest: Penalties under Sections 234A/B/C and interest under Section 234F.
• Litigation Risks: Errors could lead to scrutiny and legal consequences.

The Significance of the Extension

The extension showcases the government’s commitment to ensuring taxpayer compliance. By providing additional time, it helps taxpayers address errors while promoting transparency and accuracy in filings.

In Conclusion

The extended ITR deadline of January 15, 2025, provides a valuable opportunity for taxpayers to correct mistakes, claim rebates, and ensure compliance. Timely action and professional guidance can help maximize the benefits of this extension. Remember, honest reporting strengthens the tax system!

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