Revised ITR Filing Extended Deadline: An important information for income tax payers is that the last date to file revised income tax return (Revised ITR) for the financial year 2023-24 (assessment year or assessment year 2024-25) is 15 January 2025 i.e. today. This deadline has been fixed under the notification of the Central Board of Direct Taxes (CBDT) after the order of the Bombay High Court. Taxpayers can take advantage of this opportunity and claim tax exemption under section 87A. If you are eligible, the tax exemption available under Section 87A can even reduce your tax liability to zero.
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Importance of tax exemption of section 87A
Under Section 87A, taxpayers get complete exemption from tax liability up to a certain income limit. This exemption is applicable in both the old and new tax systems. Taxpayers who are eligible to avail this exemption, but could not claim it while filing regular ITR due to problem in the tax filing tool of the Income Tax Department, can now claim this tax benefit by filing a revised ITR. Can.
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Important order of Bombay High Court
The Bombay High Court has made it clear in its interim order that taxpayers cannot be deprived of their statutory rights due to any technical reason. Tax authorities should help taxpayers instead of hiding behind procedural hurdles. The court said that it is necessary to maintain transparency and fairness in the tax system. This is the reason why the court issued an interim order providing relief to the taxpayers, after which the deadline for filing the revised ITR was extended till January 15, 2025.
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Why is it necessary to file revised ITR?
Eligible taxpayers must file revised ITR before 12 midnight on January 15 to avail tax exemption under Section 87A. Although the court’s final decision in this matter is yet to come, but due to the interim order, the extended deadline is ending before that. Therefore, it would be better if the taxpayer takes advantage of the current opportunity and files a revised return. If taxpayers do not utilize this opportunity now and the deadline is not extended further in the final decision of the court, then they will not be able to avail the benefit of tax rebate. On the other hand, even if the final decision of the Bombay High Court is not in favor of the taxpayers, those filing revised ITR may still get a chance to claim their rights.
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How to file amended ITR
Taxpayers who had earlier claimed exemption under Section 87A but it was rejected by the Income Tax Department can revise their ITR. At the same time, those who had not claimed this exemption earlier can also now claim tax rebate by filing revised ITR. For this, they will have to login to the Income Tax portal, select the option of revised return and complete the process as per the instructions given.
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What are the possibilities ahead?
If the decision of the Bombay High Court comes in favor of the taxpayers, then the taxpayers filing revised ITR will get the benefit of exemption of section 87A. If the decision is not in favor, then at most the Income Tax Department can issue a new demand notice. But most experts believe that the court’s decision is more likely to be in favor of the taxpayers. Overall, it is better that instead of waiting for the final decision of the court, taxpayers should file amended ITR before midnight on January 15, 2025 and claim tax exemption under section 87A.
