Synopsis:
The income tax department has extended the Income Tax Return (ITR) filing deadline for taxpayers involved in specified domestic transactions or international transactions for FY 2023-24 (AY 2024-25) to December 15, 2024. This extension, from the original deadline of November 30, 2024, provides additional time to taxpayers and helps them avoid penalties associated with belated filing.

Link to IT Department Post

Key Highlights of the Extension

1. Who Benefits from the Extension?
   • Taxpayers involved in specified domestic transactions or international transactions, as defined under Section 92E of the Income Tax Act, 1961.
   • Those required to furnish a report under Form 3CEB.
2. Previous Deadline vs. Revised Deadline
   • Original Deadline: November 30, 2024
   • New Deadline: December 15, 2024
3. Reason for Extension
   • To allow sufficient time for compliance with filing requirements, especially for taxpayers with complex reporting obligations.
4. Penalty Avoidance
   • Filing by the extended deadline ensures taxpayers avoid penalties for belated ITR filing, which can otherwise range between ₹1,000 and ₹5,000 under Section 234F.

Why Is This Extension Important?

Taxpayers engaged in international or specified domestic transactions often have to comply with stringent transfer pricing regulations. Filing Form 3CEB requires detailed documentation, expert assistance, and robust compliance mechanisms, which can be time-consuming. The extension offers:

• Additional Time: Helps taxpayers and consultants ensure accurate reporting.
• Reduced Compliance Pressure: Facilitates smoother filing amid other year-end financial obligations.

Steps to File ITR for Specified Taxpayers

1. Prepare Form 3CEB
   • Engage a Chartered Accountant (CA) to prepare and certify Form 3CEB.
   • Ensure all specified transactions are reported accurately.
2. Reconcile Financial Statements
   • Match financial records with transaction details to avoid discrepancies.
3. E-File the ITR
   • Use the Income Tax Department’s e-filing portal to submit the ITR.
4. Avoid Last-Minute Rush
   • Start the filing process early to minimize errors and ensure timely submission.

Conclusion

This deadline extension to December 15, 2024, is a welcome relief for taxpayers handling complex transactions. It allows for detailed compliance, reduces last-minute pressure, and ensures adherence to India’s transfer pricing norms without risking penalties. Taxpayers should use this time effectively to ensure accurate and timely filings.

Disclaimer: This article is for informational purposes only. Taxpayers are advised to consult a certified tax professional for specific guidance.