Winning Bizness Desk
Mumbai.The clock is ticking for taxpayers who are yet to file their Income Tax Return for the financial year 2024-25. With just seven days left, December 31 is the final deadline to file a belated return along with a late fee. Missing this cut-off will mean losing the right to file the return altogether, which can invite tax notices, penalties and other legal troubles. More importantly, anyone filing after December 31 will forfeit their eligible tax refund, which will lapse to the government irrespective of the amount.
Late Fee Rules and Missed Deadlines
Taxpayers filing a belated return now must pay a penalty based on income slabs. For those with an annual income below Rs 5 lakh, the late fee stands at Rs 1,000. If the income is Rs 5 lakh or more, the penalty rises sharply to Rs 5,000. The original deadline to file ITR without any late fee was September 16. The Income Tax Department has made it clear that no refund claims will be entertained once the December 31 deadline passes.
Documents and Form Selection Essentials
Before starting the filing process, taxpayers should keep all documents ready to avoid errors and delays. These include:
* Form 16 for salary and TDS details
* Form 26AS and Annual Information Statement for tax paid status
* Bank statements and interest certificates
* Investment proofs such as LIC, PPF and NSC
* Home loan details, rent receipts and capital gains information
Choosing the correct ITR form is equally critical:
* ITR-1 for salary, one house property and interest income up to Rs 50 lakh
* ITR-2 for salary or pension with multiple houses or capital gains
* ITR-3 for business or professional income
* ITR-4 for those under presumptive taxation scheme
Online Filing and Verification Process
ITR filing is done online through the income tax portal using PAN and password. Taxpayers must fill income details, calculate tax liability and pay any pending tax online. Once filed, verification within 30 days is mandatory. This can be done through Aadhaar OTP, net banking or demat account. Failure to verify will halt processing completely, even if the return is filed on time.
Why Refunds Get Stuck Midway
Many taxpayers who filed returns by September 16 are still waiting for refunds. The most common reason is bank account validation. Refunds are credited only to pre-validated accounts, and any mismatch can stall the process. Another major issue is non-verification of ITR within 30 days. Delay in replying to defective return notices also causes long hold-ups. Incorrect claims under deductions or exemptions, such as HRA or Section 80C, can trigger scrutiny and pause refunds until corrections are made through a revised return.
Tracking Refund Status and What to Expect
Refunds usually arrive within three to four weeks after filing, though higher amounts may take longer due to manual checks. Taxpayers can track status on the income tax portal. If the status shows refund failed or account not validated, immediate bank validation can release funds within a few days. The entire refund system is now digital and routed through the Central Processing Centre. Experts note that smaller refunds up to Rs 10,000 clear faster, while amounts above Rs 1 lakh undergo deeper checks, making timely and accurate filing more important than ever.
