Good News! Income-Tax Department Extends Deadline for Filing Revised ITR - Check Details

New Delhi: The Income-Tax department has extended the last date for filing belated or revised return for the 2023-24 fiscal to January 15.

The last date for filing revised return for Assessment Year (AY) 2024-25 (2023-24 fiscal) was earlier December 31. 

"CBDT (Central Board of Direct Taxes) extends the last date for furnishing belated/revised return of income for AY 2024-25 in the case of resident individuals from December 31, 2024, to January 15, 2025," the Income-Tax department said in a post on X.

Vivek Jalan, a partner in Tax Connect Advisory Services LLP, said that for the 2023-24 fiscal, the due date to make the rectifications by resident taxpayers was December 31, which was the last date to file belated or revised ITRs (Income Tax Returns).

This has now been extended to January 15, giving some relaxation to these taxpayers to match with their books first and then file their belated/revised ITRs accordingly, Jalan said. 

Tax burden on individuals earning less than Rs 20 lakh a year, broadly described as middle class, has come down during the 10 years of Prime Minister Narendra Modi-led government, while there has been a substantial increase in taxes paid by those having annual income above Rs 50 lakh, sources said on Wednesday.

As per the income tax return (ITR) filing data, the number of individuals showing annual income of over Rs 50 lakh has gone up to over 9.39 lakh in 2023-24, a five-fold jump from 1.85 lakh in 2013-14. Also, the income tax liability of those earning above Rs 50 lakh has gone up 3.2 times, from Rs 2.52 lakh crore in 2014, to Rs 9.62 lakh crore in 2024.

A source said that 76 per cent of income tax collected is from those earning above Rs 50 lakh a year. This has led to reduced tax burden on the middle class.

Also, the increase in number of people filing ITRs with annual income above Rs 50 lakh is due to "strong anti tax evasion and black money laws implemented by the Modi government", the source added.

The source further said that in 2014, individuals earning above Rs 2 lakh a year had to pay income tax. However, because of various exemptions and deductions announced by the Modi government, individuals earning up to Rs 7 lakh need not pay any taxes. 

The percentage of income tax collection from taxpayers earning less than Rs 10 lakh has reduced, from 10.17 per cent of the total tax paid in 2014, to 6.22 per cent in 2024.

According to the source, the income tax liability of those earning between Rs 2.5 and Rs 7 lakh was an average Rs 43,000 in 2023-24, which is around 4-5 per cent of their income -- a level which is the lowest amongst emerging economies.

The source further said that as per official calculations, after adjusting inflation over the 10-year period, there is almost 60 per cent decrease in tax liability for those earning in the range of Rs 10-20 lakh.

The number of income tax returns filed by individuals have increased, from over 3.60 crore in 2013-14, to 7.97 crore in 2023-24, representing an increase of 121 per cent. 

With PTI Inputs