December is a month of festive cheer, last-minute gift shopping, and… tax deadlines! While March is often synonymous with tax planning, December has emerged as equally important for taxpayers. So, grab a cup of coffee, and let’s walk through the key compliance tasks and deadlines for December 31, 2024.
1.
Vivad Se Vishwas Scheme (VSVS-2024): Resolve Tax Disputes
Deadline:
December 31, 2024
The government’s Vivad Se Vishwas
Scheme (VSVS-2024) offers taxpayers an opportunity to resolve pending tax
disputes. Think of it as a peace treaty for your tax battles.
- Benefits:
- Save 10% on tax disputes.
- Save 5% on penalty-related appeals.
- Missed Deadline Consequences:
- Taxpayers will have to return to litigation.
- Potentially higher costs if disputes are settled after
March 31, 2025.
This scheme is a golden opportunity
to close disputes amicably while saving time and money.
2.
Belated Income Tax Return (ITR) – Section 139(4): Better Late Than Never
Deadline:
December 31, 2024
Missed the original ITR filing
deadline? Don’t panic—December 31 is your second chance to file.
- Late Filing Fees:
- ₹5,000
for most taxpayers.
- ₹1,000
for incomes below ₹5 lakh.
- Risks of Late Filing:
- Loss Carry-Forward Denied:
- Losses from any source
(except house property) cannot be carried forward if ITR is filed after
the due date.
- Denial of Deductions:
- Deductions under Sections 80HH,
80RRB, 80IA, etc., and benefits for charitable trusts are not
available for late filers.
By filing before December 31, you
can avoid penalties and preserve your tax benefits.
3.
Revised Income Tax Return (ITR) – Section 139(5): Fix Those Oops Moments
Deadline:
December 31, 2024
Mistakes happen, even with taxes. If
you’ve forgotten to include certain income or claim deductions, the Revised Return
option is your savior.
- Why Revise?
- Add overlooked income (like fixed deposit interest or
capital gains).
- Claim unclaimed TDS credits.
- Fix genuine errors (like typos or missed deductions).
- Advantages of Revising:
- No late fees.
- Unlimited revisions allowed before the deadline.
- Returns can be revised even after they’ve been
processed or refunds issued.
Taking the time to correct errors
ensures compliance and avoids future complications.
4.
Updated Income Tax Return (ITR-U) – Section 139(8A): The "Oops, I’m Late
Again" Option
For
Taxpayers Who Miss All Deadlines:
If you missed even the belated or
revised return deadlines, the Updated Return (ITR-U) is your final
option—albeit with a cost.
- Conditions to File ITR-U:
- Allowed only if the taxpayer is paying more tax.
- Cannot claim refunds, carry-forward losses, or reduced
taxes.
- Additional Tax Rates:
- 25% extra
on dues for filings within 12 months.
- 50% extra
for filings beyond 12 months.
- Ineligibility:
- Taxpayers involved in tax raids or surveys.
- Cases with ongoing assessment or reassessment
proceedings.
Remember, this is a one-time
opportunity. Once filed, you cannot revise an Updated Return for the same year.
5.
Disclosure of Foreign Assets in ITR
Taxpayers must disclose any foreign
assets in their original, belated, or revised ITR forms. Failure to disclose
can lead to penalties. Note: Updated Returns (ITR-U) do not provide immunity
for non-disclosure of foreign assets. Ensure compliance to avoid severe
consequences.
31st
December: File & Smile
In tax matters, earlier is always
better. Filing on time or fixing mistakes before December 31 can save you
money, stress, and potential legal headaches. So, revisit your ITR for FY
2023-24, make any necessary corrections, and file before the year’s end.
May your December 31 be stress-free
and compliant. Happy filing!
