ITR Filing 2024: Filing Income Tax Returns (ITR) is necessary as it reflects the taxpayer's income for the respective financial year. To avoid penalties, it is essential to file it before the deadline. For FY 2023-24 (Assessment Year 2024-25), the last date to file ITR is July 31, 2024. If you miss this deadline, you can still file a belated return by December 31, 2024, but it will attract penalties, which vary based on your income level.
Late filing fee for ITR
- For individuals with net taxable income of more than Rs 5 lakh for the financial year 2023-24 (assessment year 2024-25), filing a belated return may attract a penalty of up to Rs 5,000.
- The maximum penalty for filing a belated ITR is limited to Rs 1,000 for taxpayers with a net taxable income of Rs 5 lakh or less.
- Individuals whose taxable income is below the basic exemption limit and who file ITR only to claim a refund are exempted from the penalty for belated filing. The taxable income limit refers to the gross taxable income before applying deductions.
Why is it important to file ITR?
- Filing your income tax return is mandatory. Non-compliance can lead to penalties and potential legal consequences.
- Ensuring that your taxes are filed correctly can give you reassurance and prevent future complications.
- Timely filing of your return may make you eligible for specific tax benefits or refunds.
- In addition to penalties, interest may also be charged on any outstanding tax from the initial due date to the date of payment. In some situations, late filing may result in the loss of opportunities for specific tax deductions or loss to carry forward.
Also Read: ITR Filing 2024: Why is it crucial to verify Income Tax Return? Check time limit
Also Read: ITR filing 2024: File income tax return online from home | Here's a step-by-step guide
