New Delhi5 minutes ago
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The last date for filing income tax return for the financial year 2023-24 (assessment year 2024-25) is 31 July 2024. If you have not filed ITR yet, then do it soon. According to tax expert Chartered Accountant (CA) Anand Jain (Indore), filing ITR on time not only saves from penalty, but it has many other benefits.
1. Protection from fines
If you do not file ITR within the due date, you may have to pay a penalty. If the annual income of an individual taxpayer is more than Rs 5 lakh, then he will have to pay a late fee of Rs 5000. If the annual income of the taxpayer is less than Rs 5 lakh, then he will have to pay Rs 1,000 as a late fee. This penalty can be avoided by filing ITR on time.
2. Freedom from the fear of notice
At present, the Income Tax Department receives information about your income from various sources. If you do not file ITR on time, the Income Tax Department can issue you a notice based on that information. To avoid the hassles of notices, it is beneficial to submit ITR on time.
3. Interest savings
According to the Income Tax rules, if a taxpayer has not paid tax or has paid less than 90% of his tax liability, he will have to pay interest at the rate of 1% per month as penalty under section 234B.
Also, if you do not file your returns on time, then under section 234A, you will be liable to pay 1% interest on the net tax payable (tax payable). In this way, you can save interest on income tax by filing your returns on time.
4. Loss Carry Forward
According to the Income Tax rules, if you file ITR by the due date, you can carry forward your losses to the next financial years. That is, you can reduce your tax liability on your income in the next financial years.
For example, if there is a loss on sale of shares, then it can be carried forward for 8 years, however, if the return is not filed on time then the loss cannot be carried forward and this benefit will not be available.
While filing ITR, choose the right option for yourself between the old and new tax regime
Taxpayers get two options to file income tax returns. If you choose the first or old tax regime, only your income up to Rs 2.5 lakh will be tax free. However, under section 87A of the Income Tax Act, you can save tax on income up to Rs 5 lakh.
On choosing the new tax regime, you will not have to pay tax on income up to Rs 3 lakh. In this also, under section 87A of the Income Tax Act, salaried persons can get tax exemption on income up to Rs 7.5 lakh and other people can get tax exemption on income up to Rs 7 lakh. Click here for more information
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