Fact Check:
The latest update from the Income Tax Department brings good news: provisional Direct Tax collections for FY 2023-24 have increased to Rs. 19.58 lakh crore, marking a 17.70% increase from the previous year.
We understand filing your Income Tax Return might seem daunting, but fear not! In today’s newsletter, we’re going to simplify the process for you. Whether you’re a tax expert or a newbie, understanding the importance of timely ITR filing is crucial.
So, let’s make it easy and hassle-free for you. Don’t delay - filing your ITR on time and keep your mind at ease!
Important Deadlines for ITR Filing in India (AY 2024-25)
It’s important to remember the due dates for timely ITR filing for the Assessment Year (AY) 2024-25
ITR filing due date: As per Section 139(1) of the Income Tax Act, 1961, most taxpayers (individuals and entities not liable for tax audits) have until July 31, 2024 to file their ITRs for AY 2024-25. However, it's important to note that this deadline might be subject to change by the government.
Due date for tax audit cases: Taxpayers having mandatory requirement of tax audits (excluding transfer pricing cases) can file their Income Tax Return till October 31, 2024.
For transfer pricing cases specifically, the deadline is even later, falling on November 30, 2024.
Why Timely ITR Filing Matters?
Filing your ITR on time is not just an annual ritual—it is an act of financial prudence that unlocks a world of benefits. Beyond mere compliance, timely filing showcases your commitment to fiscal transparency, bolstering your financial credibility. Moreover, it ensures you don't miss out on claiming deductions, availing tax benefits and taking refund for the taxes already paid.
Penalties for Late Filing
The Income Tax Department enforces penalties to uphold the importance of timely tax compliance.
If you fail to file your ITR on or before the due date, you may face additional interest and penalties under Section 234F of the Income Tax Act, 1961. As per this provision, the penalty for late filing can be as follows:
If your total income does not exceed Rs.5 lakhs, the penalty for late filing is limited to Rs.1,000. This means you will be liable to pay a flat penalty of Rs.1,000 if you file your ITR after 31st July but before 31st March of the assessment year.
For taxpayers whose total income exceeds Rs.5 lakhs, a higher penalty is levied. If you file your ITR after 31st July but before 31st March of the assessment year, the penalty increases to Rs.5,000.
Note: No penalty is levied if your total income is less than Rs.2,50,000.
Consequences for filing belated ITR
Interest under section 234A at the rate of 1% per month or part of the month shall be paid on the amount of unpaid tax.
Losses under the head “capital gain” or “business or profession” incurred during the financial year are not allowed to be carried forward.
You cannot claim the benefit of new tax regime if the return is being filed after the due date.
Certain deductions including deduction under section 10A, 10B are disallowed.
Moral of the story? File your ITR on time, and avoid turning tax season into a tragedy.
If you're finding yourself wrestling with tax forms and battling a looming deadline, fear not!
JJ Tax is here to help. Our team of Tax Experts can take the stress out of filing your ITR, ensuring it's done accurately and on time.
Visit our website www.jjfintax.com or simply download our app - JJ Tax. We'll help you navigate the complexities of tax filing and ensure a smooth, stress-free experience. A little planning goes a long way, and with JJ Tax on your side, you can conquer tax season with confidence. Now, go forth and file your ITR!