The Income Tax Return (ITR) filing is a fundamental obligation for taxpayers in India. It involves declaring income earned over a financial year and paying the applicable taxes to the government. This process not only ensures compliance with tax laws but also helps individuals and businesses maintain a transparent financial record. Filing ITR on time can prevent legal complications and facilitate smoother financial transactions in the future.
Importance Of Meeting ITR Deadlines
Adhering to the ITR filing deadlines set by the Income Tax Department is crucial. Timely filing ensures that taxpayers avoid penalties and interest charges, which can accumulate and create a significant financial burden. Moreover, meeting these deadlines allows taxpayers to claim refunds and other benefits without unnecessary delays. It is also important to keep all important documents like your Form 16A, Form 26AS handy when filing the ITR.
ITR Filing 2024 Last Date
The last date for filing Income Tax Returns for the assessment year 2024-25 (AY 2024-2025)/ financial year 2023-2024 (FY 2023-2024) is 31st July 2024. This deadline applies to most individual taxpayers and businesses that do not require auditing. Filing by this date ensures compliance and avoids the imposition of penalties. For taxpayers who need to get their accounts audited, the deadline is 31st October 2024.
ITR Filing 2024 Deadline Extension
While the Income Tax Department has extended the filing deadline for various reasons in the past, due to situations such as technical issues on the e-filing portal, it is advisable not to rely on these extensions. As of now, no official announcement has been made regarding an extension for the 2024 deadline. Therefore, taxpayers should aim to complete their filings by 31st July 2024 to avoid any last-minute hassles.
Deadline Extension For Specific Taxpayers
Certain taxpayers are granted additional time to file their Income Tax Returns (ITRs). These include:
- Businesses Involved in International Transactions: Due to the extensive analysis and documentation required for transfer pricing, these businesses are given an extended deadline of 30th November to file their ITRs.
- Businesses Engaged in Specified Domestic Transactions: These businesses may require detailed reporting and compliance procedures, qualifying them for an extended filing deadline.
Eligibility for these extensions can be complex and is governed by specific sections of the Income Tax Act. It’s important to note that in some cases, late filing fees may still apply even with extended deadlines.
New Income Tax Slabs For Citizens Under The Age Of 60
The Union Budget 2024 has introduced a revamped income tax structure to simplify the tax regime and offer relief to taxpayers. The new income tax slabs are as follows:
| Income Range (₹) | Tax Rate (%) |
|---|---|
| 0 - 3,00,000 | NIL |
| 3,00,001 - 7,00,000 | 5 |
| 7,00,001 - 10,00,000 | 10 |
| 10,00,001 - 12,00,000 | 15 |
| 12,00,01 - 15,00,000 | 20 |
| Above 15,00,001 | 30 |
The standard deduction for salaried employees has been raised from ₹50,000 to ₹75,000. Additionally, the deduction on family pension for pensioners has been increased from ₹15,000 to ₹25,000. These adjustments are intended to enhance disposable income and stimulate consumer spending.
ITRs Filed Till July 30, 2024
According to India’s official Income Tax portal, over 6.5 crore ITRs have been filed till 30 July 2024, marking an increase of over 7.5% compared to last year. The number of ITRs filed per day exceeded 45 lakhs on 30 July and is expected to rise exponentially on 31st July which is the due date for many taxpayers. The 6.5 crore milestone, which has been reached on 30 July this year, was achieved on 31 July last year.
Penalties For Late ITR Filing
Filing an ITR after the due date attracts significant monetary penalties. According to Section 234F of the Income Tax Act, a late fee of ₹5,000 is imposed if the return is filed after 31st July but before 31st December 2024 and your income is over ₹5 lakh. If the return is filed after 31st December, the penalty increases to ₹10,000. However, for taxpayers with a total income below ₹5 lakh, the maximum penalty is capped at ₹1,000. These penalties are designed to encourage timely compliance and penalise delays.
In addition to monetary penalties, taxpayers also incur penal interest on any outstanding tax payable. Under Section 234A of the Income Tax Act, an interest rate of 1% per month (or part of a month) is charged on the unpaid tax amount from the due date until the actual filing date. This interest can accumulate quickly, increasing the financial burden on the taxpayer.
Who Should File An ITR?
Eligibility Criteria
Filing an ITR is mandatory for individuals and businesses that meet certain income thresholds. For the financial year 2023-24, the criteria are as follows:
- Individuals below 60 years of age with an annual income exceeding ₹2.5 lakh.
- Senior citizens (60-80 years) with an income above ₹3 lakh.
- Super senior citizens (above 80 years) with an income over ₹5 lakh. Additionally, individuals with foreign income or assets, those wishing to claim a tax refund, and those who have received income from house property, investments, or other sources, must file an ITR.
Benefits Of Filing ITR
Filing ITR offers several benefits beyond compliance. It is essential for obtaining loans, as banks often require ITR receipts as proof of income. It also facilitates visa applications, as many countries require ITR proofs to ascertain financial stability. Moreover, filing ITR can lead to tax refunds if excess tax has been paid during the year. Regular filing helps maintain a good financial record, which can be advantageous for future financial planning and transactions.
Here are the other benefits of filing the ITR:
Easy Loan Approval
When applying for loans, banks often require your ITR as proof of income. Filing an ITR makes it easier to get loan approvals, as it demonstrates your financial stability and earning capacity.
Claiming Tax Refunds
If Tax Deducted at Source (TDS) has been deducted from your income, even if your total income is below the basic exemption limit or if the TDS exceeds your actual tax liability, you can claim a refund by filing your ITR.
Proof of Income and Address
Your ITR serves as proof of income and investment, which is useful for banks and financial institutions. It can also act as address proof in various scenarios.
Quick Visa Processing
Many embassies require the submission of income tax returns from previous years when applying for a visa. Filing an ITR can help expedite the visa processing as it provides proof of financial stability.
Carry Forward of Losses
The Income Tax Act allows individuals to carry forward losses from previous years to offset against future income. However, this benefit is only available if you file your ITR within the prescribed timeline.
Facilitates Purchase of Term Insurance
Insurance providers often require ITRs as proof of income to determine the total coverage amount. Filing your ITR can help you secure the appropriate term insurance based on your earnings.
Claim Refund of Excess Tax Payments
If your income is below the threshold limit but TDS has been deducted from sources like fixed deposits, salary, or interest income, you can claim a refund of the excess tax paid by filing your ITR.
Who Can File ITR After July 31, 2024?
The deadline for submitting your Income Tax Return (ITR) for the financial year 2023-24 is 31st July 2024. Filing your ITR after this date will result in a penalty, which varies according to your income level. Many are curious about who can file their ITRs even after the due date.
For individuals and businesses requiring their accounts to be audited, the deadline has been extended to 31st October 2024. This extension aims to provide ample time to complete the audit and file the ITR. The Income Tax Department grants these taxpayers an additional three months to finalise their audit with a recognised chartered accountant before filing their ITR.
Who Won’t Be Penalised For Late ITR Filing?
Individuals may need to file an income tax return to receive a refund. However, if their taxable income is below the basic exemption limit, they will not incur any penalties for filing after the due date, as per income tax laws. When taxable income does not exceed the basic exemption limit, it means the gross taxable income is considered before accounting for any eligible deductions.
Should You File Your ITR Even If Your Taxable Income Is Below the Basic Exemption Limit?
Under the Income Tax Act of India, individuals are typically required to file an Income Tax Return (ITR) only if their annual income surpasses the basic exemption limit. However, there are certain conditions where filing an ITR is mandatory even if your income is below this threshold.
- Bank Deposits Exceeding ₹50 Lakhs: If your annual savings bank deposits in one or more accounts exceed ₹50 lakhs, you must file an ITR.
- Current Account Deposits Exceeding ₹1 Crore: If you deposit ₹1 crore or more in one or more current accounts during the financial year, filing an ITR is required.
- Annual Sales Turnover Above ₹60 Lakhs: Individuals with an annual sales turnover of more than ₹60 lakhs are required to file an ITR.
- Professional Income Above ₹10 Lakhs: If your professional income exceeds ₹10 lakhs during a financial year, you need to file an ITR.
- Electricity Bill Exceeding ₹1 Lakh: If your annual electricity bill exceeds ₹1 lakh, filing an ITR is mandatory.
- TDS/TCS Exceeding ₹25,000: If the TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) on your income is more than ₹25,000, you must file an ITR. For senior citizens, this threshold is ₹50,000.
- Income from Foreign Assets: If you have an asset in a foreign country or are a beneficiary of an asset in a foreign country, you must file an ITR.
- Expenses on Foreign Travel: If you spend ₹2 lakhs or more on foreign travel for yourself or another person during the financial year, filing an ITR is mandatory.
- Resident Taxpayers with Overseas Assets or Signing Authority: If you are considered a resident for tax purposes in India and have any overseas assets or interests, you must file an ITR. This includes assets you own directly or benefit from as a beneficiary owner. Additionally, if you are an authorised signatory for an account managed outside of India, you are required to file an ITR. This applies regardless of whether the asset is movable or immovable.
For example, if you went abroad, opened an account, and forgot to close it upon returning to India, you must file an ITR.
How to File Your ITR: Click on this link to learn more.
Conclusion
To ensure a smooth ITR filing experience, start early, keep all necessary documents organised, and double-check the information entered. If in doubt, seeking professional help from a tax consultant can be beneficial. Timely and accurate filing helps avoid penalties and ensures compliance with tax laws, ultimately leading to a hassle-free tax filing experience.
FAQs around ITR Filing
The last date to file income tax return or ITR for AY 24-25 is July 31, 2024.
The Income Tax department has clarified that the information regarding to an extension in the deadline for filing ITR is incorrect, and the deadline to file ITR for the financial year 2023-24 is still July 31, 2024.
If you have missed filing your ITR for the past three years, you can rectify this using the ITR-U form, introduced in the Union Budget 2022. This form lets you to amend past returns within two years following the relevant assessment year, allowing you to correct errors, avoid penalties, and maintain compliance with tax laws.
The last date for filing Income Tax Returns (ITR) for the financial year 2023-24 is 31st July 2024. For individuals and businesses requiring an audit, the deadline is extended to 31st October 2024.
Yes, you can file your ITR after the due date. However, it will be classified as a belated return, and you will be subject to a late filing fee and interest charges.
Filing an Income Tax Return (ITR) after the due date incurs penalties as follows:
- For Returns Filed After 31st July but Before 31st December: A late fee of ₹5,000.
- For Returns Filed After 31st December: A late fee of ₹10,000.
- For Taxpayers with Income Below ₹5 Lakh: The maximum penalty is capped at ₹1,000.
The tax-free income threshold in India varies based on the age of the taxpayer:
- Individuals Below 60 Years: Income up to ₹2.5 lakh per annum is tax-free.
- Senior Citizens (60 to 80 Years): Income up to ₹3 lakh per annum is tax-free.
- Super Senior Citizens (Above 80 Years): Income up to ₹5 lakh per annum is tax-free.
Yes, you can file your Income Tax Return (ITR) after 31st July. However, it will be considered a belated return. Filing a belated return may result in the following consequences:
Late Filing Fee:
- ₹5,000 if filed after 31st July but before 31st December.
- ₹10,000 if filed after 31st December.
- For taxpayers with an income below ₹5 lakh, the maximum penalty is ₹1,000.
Interest on Tax Payable: An interest rate of 1% per month (or part of a month) on any unpaid tax amount from the due date until the actual filing date, under Section 234A of the Income Tax Act.
Loss of Carry Forward of Losses: You may not be able to carry forward certain losses if you file after the due date.
Over 6.5 crore ITRs have been filed till 30 July 2024.
