One of the necessary financial chores for an individual or a company is to file an Income Tax Return (ITR). As the end of FY 2024-25 is going to hit the corner, taxpayers are required to make their filings on time in order to stay away from unnecessary difficulties.

CA Gaurav Kumar, a Chartered Accountant with a wealth of experience in taxation and compliance, states that the consequences of not filing the ITR on time may include the imposition of fines, extra expenses, and even legal issues. It is always better to file early, because you will have ample time to rectify errors and tax planning can be done properly.

Why Filing Your ITR on Time Matters

Filing your ITR is not just a simple formality. It indicates that you are adhering to the tax laws and assists in establishing a clear financial record.

Some of the main reasons for the importance of filing on time are:

• Avoiding the payment of late fees and fines
• Getting loan approvals without any difficulties in the future
• Facilitating your visa application for traveling abroad
• Utilizing the option of losses brought forward to the next financial years
• Enjoying compliance with the law and being free from stress

Postponing the process can result in a financial crisis and lower your financial reputation.

Important Deadline for FY 2024-25

In the case of single taxpayers and non-audit situations, the final day for submitting your Income Tax Returns will be 31 July 2025.

The cut-off time for companies that need audits is prolonged until 31 October 2025.

It is very important to file earlier than these dates because after the due date has gone by, the late charges and the interests are being added automatically.

Penalties for Missing the Deadline

If by any chance you do not file your ITR on time then you can be a subject of multiple penalties and face different consequences:

1. Late Filing Fee under Section 234F

• A fee of ₹5,000 is imposed as a penalty if you do the return after the last date but before December 31, 2025.
• Notably, if the total income of the assessee is below ₹5 lakhs, the penalty amount is limited to ₹1,000.

2. Interest on Tax Due (Section 234A)

If there are unpaid taxes at the time of filing, interest at 1% per month will be charged from the due date until payment is made.

3. Loss of Certain Benefits

• t is not possible to carry forward the losses from business or capital if you fail to file your tax return on time.
• This has an immediate effect on the future tax planning.

4. Possible Notices from the Tax Department

If the filing is delayed or not done at all, then the assessors may receive the scrutiny notices or inquiries that can be stressful and time-consuming to handle.

Steps to Avoid Penalties

CA Gaurav Kumar recommends taking these steps before the deadline:

1. Collect All Necessary Documents Early

Get hold of Form 16, bank statements, proofs of your investments, TDS certificates, and other related documents at least a month before the due date.

2. Verify Tax Credits on Form 26AS

Basically, you are checking if the money that was deducted from your income by your employer, bank, etc. is correctly shown in Form 26AS and AIS.

3. Calculate Taxes and Pay Any Dues

Make sure you pay the outstanding tax amount with the interest before filing your return.

4. File Online to Save Time

The government e-filing portal is a user-friendly platform that allows you to file your returns smoothly and save time.

5. Take Help from a Professional

If indeed your sources of income are something like foreign income, capital gains, or business income, then a tax expert is the best solution for your correct filing.

Why Early Filing is Beneficial

If you submit your returns well in advance of the deadline, you will enjoy a number of benefits:

• You will have more time to check and correct if there are any errors
• You will not experience any stressful moments at the last minute when the portal is busy
• Your refunds will be processed at a quicker rate
• You will lower the possibility of getting a fine or forgetting a report

Moreover, managing your tax returns early will give you the chance to allocate your resources better for the following fiscal year.

Conclusion

FY 2024-25 ITR deadline is nearest by a mile. It is the act of filing your returns on time that is absolutely necessary to avoid getting stuck in an unwelcome situation of penalties, interest, and other inconveniences of life.

Not only that, by missing the deadline your financial credibility will be affected, and you will be limited in your future planning.

Being well-organized, having your papers ready in advance, and filing well before July 31, 2025, will not only give you a good command over your compliance but also add to your comfort.

CA Gaurav Kumar emphatically insists that the taxpayers should make up their minds and act now rather than waiting till the last moment. A timely return is not only a part of the legal requirements but also a wise financial habit that keeps your future secure.