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Is it necessary to file an ITR?

A must have guide 😇

Filing ITRs can be a daunting task. In today’s newsletter, we aim to simplify the process for you. It is essential to understand the potential consequences of skipping ITRs, as well as the benefits of submitting them on time, regardless of your tax knowledge. File on time, ease your mind!


Important Deadlines for ITR Filing in India (AY 2024-25)

Understanding the deadlines for ITR filing is crucial for a hassle-free experience. So, what are the key dates you need to remember for the Assessment Year (AY) 2024-25?

Standard Filing Due Date: As per Section 139(1) of the Income Tax Act, 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.

Tax Audit Cases: If your tax situation requires an audit, you'll have a later deadline. Taxpayers covered under tax audits (excluding transfer pricing cases) have until October 31, 2024 to file their ITRs.

For transfer pricing cases specifically, the deadline is even later, falling on November 30, 2024.

Revised or Belated Returns:

Did you make a mistake or missed the initial deadline? Don't worry. You can still file a revised return or a belated return for the financial year 2023-24. The last date for such filings is December 31, 2024.

Too many dates to track? Don’t worry, we have a Tax and compliance calendar on our website where you can track all your deadlines at one place. And yes, you don’t need to sign up (just yet) to use this feature.

The Price of Neglect - Consequences of Not Filing ITR

  • If you don't file your tax return by the due date, there are several consequences that you may face. The income tax officer can take legal action against you if you deliberately fail to file your return even after receiving notices. This may result in imprisonment for a period ranging from three months to two years along with a fine. If you owe a significant amount of tax to the income tax department, the prosecution period may extend up to seven years.

  • In case of underreporting income, the income tax officer may impose a penalty of up to 50% of the tax due. Besides the penalty levied by the IT department, there are other consequences that a taxpayer may face for late filing of returns. For instance, if you fail to file your returns within the due date, you won't be able to set off losses incurred (other than house property loss) against future gains. However, if there are losses under house property, you are permitted to carry forward these losses.

  • Additionally, interest will be charged under ‘Section 234A’ at 1% per month or part thereof on tax due until the payment of taxes. The interest calculation under the said section will start from the date falling immediately after the due date. So, the longer you wait, the more interest you'll have to pay. Furthermore, in case you're entitled to receive a refund from the government for excess taxes paid, you must file your returns before the due date to receive your refund as soon as possible.

  • Late filing fees under Section 234F will be applicable for filing returns after the due date. For instance, if you miss filing your ITR by the due date of 31st July 2024 for FY 2023-24, you can file the belated return by 31st December 2024. However, a maximum penalty of Rs 5,000 will be levied if you file your ITR after the due date but before 31st December 2024. Small taxpayers are given relief where their total income does not exceed Rs 5 lakh, and the maximum penalty levied for delay will be Rs 1,000. No penalty will be charged if the total income does not exceed the basic exemption limit.


Benefits of Filing Your ITR on Time: 

  • The Government Might Actually Like You It shows you're a responsible citizen, contributing to the nation's growth. No raised eyebrows or random audits in your future!

  • Loan Applications? Easy Breezy: Need a loan for that dream house or that swanky new car? Banks love seeing squeaky-clean ITR filings. It demonstrates your financial responsibility and makes them more likely to loosen their purse strings (within reason, of course).

  • Visa Applications? No Problem: Travelling the world? Many countries require proof of income for visa applications. A handy ITR receipt can be your passport to new adventures (without the hassle of explaining to the embassy why you haven't filed your taxes).

  • Sleep Soundly at Night (Mostly): While we can't guarantee a complete absence of tax-related nightmares, filing on time significantly reduces the chances of the taxman haunting your dreams. Sweet, uninterrupted sleep awaits!

Of course, there's always the other side of the coin...

(We won't dwell on that any further here, but let's just say it involves penalties, interest, and a whole lot of paperwork. Not fun.)

The moral of the story? File your ITR on time, and avoid turning tax season into a tragedy. It's a win-win (well, mostly a win) for everyone involved!

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 or simply download our JJ Tax JJ Tax App. 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. If you are still not sure about how we can help, feel free to book a FREE call with our experts. 

Now, go forward and file your ITR – your future self (and your bank account) will thank you!

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