A Comprehensive Guide to Filing Taxes

Introduction:

Every taxpayer must keep in mind the dates for filing income tax returns in order to avoid penalties under the Income Tax Act of 1961, as we all know that the time for filing is running out. This post contains a list of all the necessary deadlines for FY 2023–2024 (AY 2024–25). Professionals in the fields of taxation, accounting, and bookkeeping can also view advance tax and updated and revised ITR deadlines. For AY2024–2025, the CBDT department began accepting ITRs on April 1.

What is the Income Tax?

Direct tax and indirect tax are the two forms of taxes levied on entities. Income tax is a type of direct tax where the assessee's income is directly linked to the tax. revenue derived from a variety of sources, including capital gains, businesses, house and property, salary, and other sources of revenue. If the assessee's total income exceeds the taxable income limit after deducting Chapter VI-A, income tax must be paid.

When is The Last Date to File an ITR?

The deadline for filing ITRs for the 2023–24 Financial Year (AY 2024–25) is July 31, 2024. Even so, you have until December 31, 2024, to file a belated return if you fail to do so by the deadline.

Income Tax Filing Due Dates for FY 2023-24 (AY 2024-25)

What Happens if You Miss the ITR Filing Deadline?

Interest: 

In accordance with Section 234A, you will be required to pay interest on the amount of unpaid taxes at a rate of 1% per month or part month if your return is filed after the deadline.

Late fee: 

If you file after the deadline, Section 234F charges a Rs. 5,000 late fee. If your total income is less than Rs. 5 lakh, this fee is waived to Rs. 1,000.

Loss Adjustment: 

If you have losses from investments in stocks, mutual funds, real estate, or any of your businesses, you can carry those losses forward and deduct them from your income the following year. Your future tax liability is significantly decreased by this provision. If you fail to file your ITR by the deadline, though, you will not be able to carry over these losses.

Belated Return: 

You can file a return after the deadline, known as a belated return, if you miss the ITR filing deadline. You cannot, however, carry forward any losses for future adjustments, and you will still be responsible for paying the interest and late fee. Unless the government extends the deadline, the assessment year's final day to file a late return is December 31st. For this year, therefore, you can file the late return no later than December 31, 2024.

Updated Return: 

If you meet the requirements stated in that document, you can still file the updated (ITR U) return even if you are unable to file it by the deadline of December 31.

What are the Benefits of Filling ITR under Due Date?

The following are the benefits of filling ITR under due date:

• It is more likely that you will be approved for a home loan, an auto loan, and other loans if your income tax returns are filed on time.
• ITRs can be used to demonstrate residency and income, which are prerequisites for obtaining a loan or visa.
• Most consulates and embassies require copies of your income tax returns for the previous two years when you apply for a visa.
• If you file your ITR on time, you will receive your refunds as soon as possible.
• Before filing an ITR, taxpayers must settle their outstanding taxes. Interest is payable at the rate of one percent per month beginning on the date the taxes are due and ending on the payment date, as stipulated by Section 234A. You can avoid paying additional interest if you file your tax return on time. Therefore, the longer you wait to file your returns and pay your taxes, the heavier your burden will be.

Conclusion:

It's super important to file your taxes on time to avoid penalties and get cool benefits like getting loans easily, applying for visas, and getting your refunds faster. If you miss the deadline, you might have to pay extra fees. But don't worry, using stuff like direct debit or online portals can make paying taxes easier. Doing everything on time makes life simpler and helps you qualify for more stuff. Remember, staying on top of your taxes is key to financial peace of mind!

Frequently Asked Questions (FAQs)

Q: What is the last date of ITR for FY 2023-24, AY 2024-25?

A: For the majority of individual taxpayers, 31 July 2024, is the deadline for filing income tax returns for FY 2023–2024. A penalty of up to Rs.5,000 may be assessed for filing returns beyond the deadline. The amount is only Rs.1,000, though, if the person's total income is less than Rs.5 lakhs. 

Q: How to pay income tax after the due date?

A: If you miss the tax payment and filing deadline, you can still pay later, but with penalties. A late filing fee of Rs. 5,000 applies, reduced to Rs. 1,000 for incomes below Rs. 5 lakh.

Q: What is an income tax audit?

A: It is the examination and inspection of an entity’s books of accounts to ensure compliance with the Income Tax Act, 1961. Only certain types of assesses need to get their tax audit done by a CA or a firm of CAs.

Q: Who needs to get an income tax audit report?

A: Any business with an annual turnover exceeding 1 crore and any professional with receipts above Rs 50 lakh has to get their tax audit done. 

Q: What is the due date for filling returns for companies?

A: For the Financial Year (FY) 2023–2024 returns, domestic companies must file them by 31 October 2024. If the corporation has any international transactions or certain domestic transactions and is obliged to file a report in Form Number 3CEB under Section 92E, the ITR is due on 30 November 2024. 

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