Recently, the Bombay High Court directed the Central Board of Direct Taxes (CBDT) to extend the deadline for filing Income Tax Returns (ITR) until the judgment on the 87A tax rebate case is delivered. 

 

“…Central Board of Direct Taxes is hereby directed to forthwith issue requisite notification under Section 119 of the Act extending the due date for e-filing of the income-tax returns in relation to the assessees who are required to file a return of income by December 31, 2024, at least to January 15, 2025. This extension is to ensure that all taxpayers eligible for the rebate under Section 87A are afforded the opportunity to exercise their statutory rights without facing procedural impediments,” the court said.

 

“This extension applies exclusively to resident individual taxpayers, offering them a valuable opportunity to cross-verify their income declarations, ensuring no discrepancies are reported in their ITRs, and to file revised returns in case of any errors. This measure is expected to significantly reduce the quantum of notices to be issued against the taxpayers for income mismatches between the Annual information statement and ITRs,” said Kunal Savani, partner, Cyril Amarchand Mangaldas.

 

 

“Missing the deadline for filing your belated Income Tax Return (ITR) for financial year 2023-24 can have several consequences. Penalties for late filing may increase significantly, and you could lose certain benefits, such as the ability to carry forward losses,” said Amit Bansal, partner, Singhania & Co.