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Home > Income Tax > Help Center > ITR within due date Last Updated: Dec 07th 2023

Why should you file Income Tax Return (ITR) within the due date?

Filing the income tax return (ITR) with in the due date (last date) get you the benefit of avoiding penalties, notices, interest under section 234A, 234B, 234C, get the chance to file the revised return, and many more to know penalty, late filing interest etc.

Why should you file Income Tax Return (ITR) within the due date?

This document covers

  1. ITR Due Date
  2. Advantages of filing the Income Tax Return with in the due date

1. ITR Due Date

There are many advantages of filing the Income Tax Return with in the due date. 31st Jul is the ITR duedate for the income / financial activity during previous financial year. Check latest due dates @ Tax Compliance Calendar.

2. Advantages of filing the Income Tax Return with in the due date

The important advantages for ITR Filing before the due date (last date) are

1.Avoiding Penalties and Fines

For tax payers with a Total Income of more than Rs.5,00,000

  • If ITR is filed on or before 31st December following the last date – the fine would be Rs.5,000.
  • If ITR is filed after 31st December – the fine would be Rs.10,000.

For tax payers with Total Income of less than Rs. 5,00,000 – Rs. 1,000.

2.Avoiding Interest on Income Tax
  1. Interest u/s 234A: Interest calculate 1% per month.
  2. Interest u/s 234B: assessee as failed to pay such tax or the advance tax paid by such assessee is less than 90% of the assessed tax; the assessee shall be liable to pay simple interest 1% for every month or part of a month.
  3. Interest u/s 234C:The advance tax paid by the assessee company on its current income on or before 15th June, 15th September, 15th December is less than 15%, 45% and 75% respectively on the returned income, then the company shall be liable to pay simple interest at the rate of 1% per month for a period of three months on theamount of the shortfall.
3.Getting a Chance to Revise Your Returns

The ITR filing process might have been simplified but still mistakes can happen in the form of overlooked income, missed tax benefits, etc. In case you have filed your ITR in a timely manner, you do get opportunities to revise your returns even after the due-date has passed.

Common mistakes, such as missed income and extra tax paid, can cost you in the long term whether through fines imposed by the IT Department or through loss of tax refunds.

4.Carry Forward Losses

In case you incur losses during earlier assessment years, thru sources of income such as business, capital gains, or income from other sources, they can be carried forwarded to the next financial year, and provide tax relief in the subsequent year. Unfortunately, such losses cannot be carry forwarded in case the ITR is filed after the due date.

5.Avoid Legal Repercussions

Filing your ITR after the due date or not filing it at all has legal implications like notices, queries, and physical attendance at the tax commissionerate.

How to get help from

Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.