ITR FILING – Bombay High Court Directs CBDT to Extend ITR Filing Deadline AY 2024-25

by

The Bombay High Court, in response to a Public Interest Litigation (PIL) filed by the Chamber of Tax Consultants, has directed the Central Board of Direct Taxes (CBDT) to extend the Income Tax Return (ITR) filing deadline from December 31, 2024, to January 15, 2025. The court emphasized that this extension is crucial to ensure that taxpayers eligible for a rebate under Section 87A can exercise their statutory rights without facing procedural hurdlesKey Highlights of the Court’s Directions – ITR Filingg

  1. Why is an Extension Necessary? ITR Filing
    implemented on July 5, 2024, created difficulties for many taxpayers in accurately calculating the rebate under Section 87A. This particularly impacted taxpayers with income taxable at special rates, potentially leading to overpayment of taxes.
  2. Section 87A: A Fundamental Right – ITR Filing
    The High Court stated that the rebate under Section 87A is directly linked to a taxpayer’s total income and tax liability. It is the responsibility of the tax authorities to ensure all eligible taxpayers can claim this benefit.
  3. Criticism of Procedural Barriers – ITR Filing
    The court criticized technical and procedural changes, such as new utility software or departmental instructions, that obstruct taxpayers’ rights. Tax authorities should act as facilitators, not create hurdles.
  4. Right to File Revised Returns – ITR Filing
    The court recognized taxpayers’ right to file revised returns if they missed claiming the rebate earlier. Currently, the deadline for filing belated returns is December 31, 2024, but the court suggested extending this date.
  5. Revenue Department’s Responsibility – ITR Filing
    The High Court clarified that the tax authorities’ primary role is to implement rules effectively and not to impose procedural obstacles that deprive taxpayers of their statutory benefits.

Next Hearing Date of HC for ITR filling due date extentions and 87A Rebate

The case is scheduled for the next hearing on January 9, 2025.

FAQ (Frequently Asked Questions)

  1. What is Section 87A?
    Section 87A is a provision under the Income Tax Act that provides a rebate on tax liability to eligible taxpayers, provided their total income falls within a specified limit.
  2. Has the ITR filing deadline been extended?
    The High Court has directed the CBDT to extend the filing deadline from December 31, 2024, to January 15, 2025. The final decision will be made during the hearing on January 9, 2025.
  3. Can I file a revised return?
    Yes, if you missed claiming the rebate under Section 87A, you can file a revised return. The current deadline for filing a belated return is December 31, 2024, but an extension has been suggested.
  4. The court instructed the CBDT to ensure that taxpayers are not deprived of their statutory rights due to technical or procedural changes. The extension of the deadline is aimed at protecting these rights.
  5. What happens if the deadline isn’t extended?
    If the deadline isn’t extended, many taxpayers may miss claiming the rebate under Section 87A, leading to unnecessary financial losses.

Conclusion
The Bombay High Court has emphasized the importance of protecting taxpayers’ rights and directed the CBDT to take necessary steps to address procedural challenges. Extending the deadline will ensure that all eligible taxpayers can file their returns and claim their benefits without inconvenience.

Leave a Comment