ITR 2024 deadline: Beat last-minute rush with these key steps
With the July 31 deadline for filing income tax returns for the financial year 2023-24 fast approaching, taxpayers are urged to act fast. This year, the new tax regime is the default option. However, those who have made investments in various tax-saving instruments can claim exemptions against their investments and file their returns under the old tax regime. With just days remaining, here's a quick guide to ensure you file your return smoothly and avoid any last-minute hassles.
Choosing the right income tax form: A quick guide
Taxpayers are reminded that there are several income tax forms available, and the correct form must be chosen based on individual income and other factors. For example, ITR-1 (Sahaj) is for salaried individuals with one house property and other sources of income such as interest or family pension, provided their total income does not exceed ₹50 lakh. ITR-2 is for individuals and Hindu Undivided Families (HUFs) with more diverse sources of income.
ITR-4 is for taxpayers opting for presumptive income schemes
ITR-3 is designed for individuals and HUFs earning income from a business or profession, requiring detailed reporting of income including profit and loss statements along with balance sheets. ITR-4 (Sugam) is for taxpayers opting for presumptive income schemes covered under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. ITR-5 applies to firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), and BOIs (Body of Individuals).
More on income tax return forms: ITR-6 and ITR-7
ITR-6 is applicable to entities not claiming exemption under Section 11, which pertains to income from property held for charitable or religious purposes. ITR-7 is for persons as well as trusts, institutions, political parties, etc. required to furnish returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D). It's crucial for taxpayers to understand these forms and select the one most appropriate for their financial situation.
ITR for salaried individuals: Key documents to consider
Taxpayers who get a salary or pension can file their income tax return based on the details given in Form 16, AIS (Annual Information Statement), TIS (Taxable Income Statement), and 26AS. The AIS provides financial transactions, tax payments, and refunds while TIS simplifies the details given in AIS for comprehension of taxpayers. Form 26AS serves as a tax credit statement displaying details of TDS (tax deducted at source) and TCS (tax collected at source).
The importance of verifying your income tax return
After filing the income tax return, it is mandatory for taxpayers to verify it. Without verification, the return is considered invalid and will not be processed by the Income Tax Department. This could potentially lead to penalties, delays, or notices from the tax department. You can use Aadhaar OTP method to verify your ITR online. Log in to your Income Tax e-filing account. Under the 'e-file' tab, select 'Income Tax Returns' > 'e-Verify Return.'
Consequences of missing the ITR deadline
Along with the tax return for FY 2023-24, taxpayers can also file their return for the previous two years using ITR-U (updated income tax return). However, missing the July 31 deadline could result in a late filing fee of ₹5,000 under Section 234F of the Income Tax Act. The fee is reduced to ₹1,000 if your income is lower than ₹5 lakh. You can also file your ITR 2024 using WhatsApp through a service provided by ClearTax.
