Finance

Published: May 24, 2024
Updated: May 24, 2024

ITR Filing for FY 2023-24: Essential Deadlines and Guidelines for Individual Taxpayers

Filing Deadline and Importance

The process for filing Income Tax Returns (ITR) for FY 2023-24 (AY 2024-25) has commenced for individual taxpayers and non-audit cases. The deadline for filing ITR for individuals, including the salaried class and non-audit cases, is July 31, 2024. Filing an ITR is a declaration of taxable income and the taxes owed or eligible for a refund.

Who Must File an Income Tax Return?

Filing an ITR is mandatory for anyone whose total income exceeds the exemption limit of ₹3,00,000 under the new tax regime. Additionally, individuals must file if they meet any of the following conditions:

● Deposited over ₹1 crore in one or more current accounts.
● Spent over ₹2 lakh on foreign travel.
● Paid more than ₹1 lakh in electricity bills.
● Total business sales, turnover, or gross receipts exceed ₹60 lakh.
● Total professional gross receipts exceed ₹10 lakh.
● Total TDS and TCS are ₹25,000 or more (₹50,000 for individuals aged 60 or above).
● Deposited ₹50 lakh or more in one or more savings bank accounts.

When to File Your ITR?

For taxpayers with uncomplicated financial situations, filing early can be advantageous. However, it's advisable to wait until the second week of June. This ensures that TDS data reported on your PAN is reconciled with your figures, minimising discrepancies.

Non-Resident Indians (NRIs) Filing:

NRIs should also wait until the second week of June to file their returns to align their information with the data appearing on the I-T portal.

Importance of Form 26AS and AIS:

Form 26AS and the Annual Information Statement (AIS) reflect TDS deductions. Filing before these forms are updated may result in missing out on claiming TDS or facing discrepancies. Ensure these forms are updated by May 31 before filing your ITR.

Choosing the Right Tax Regime:

From AY 2024-25, the new tax regime is the default option. Taxpayers must opt for the old regime if they wish to avail deductions and exemptions not available in the new regime. The ITR forms have been updated to reflect these changes. For example, ITR-1 is for incomes up to ₹50 lakh from specific sources, while ITR-3 or ITR-4 is required for business or professional income.

Penalties and Interest for Late Filing:

Delays in filing ITR can result in a penalty of ₹5,000 if the total income exceeds ₹5 lakh, and ₹1,000 in other cases, under Section 234F. Additionally, interest at 1% per month on unpaid tax amounts will apply under Section 234A if filed after the due date.

While there is ample time until the July 31 deadline, it's crucial for individual taxpayers to start the process early, particularly for data reconciliation. Early filing can expedite refunds and avoid last-minute stress and penalties. However, ensure all necessary documents, especially Form 16, are in order to accurately report income and taxes. Filing your ITR correctly and on time is essential for a smooth tax filing experience.