The last date to file your income tax return for assessment years 2024-25 is approaching fast, 31 July 2024. Taxpayers who are unaware of the Indian Income tax return filing can read the article to gather every detail of the filing process.
Income Tax Return Filing
According to the Indian tax laws, every individual and business earning an income must file an Income tax return. The tax filing season in India is set and the last date to file your income tax returns is 31 July 2024.
The Income tax return filing process curtains taxpayers’ record of total income earned during the financial year (1 April to 31 March of next year) as per the rules and regulations of the Government of India.
Every citizen of India who earns income over the exempted income threshold of the tax slab has to pay taxes to the Income Tax Department of India. The taxpayers pay the income tax based on the income slab for the old and new tax regime.
Under the new laws, the new tax regime is a default tax regime, meaning the taxpayers can choose the tax regime that suits their financial goals and file the tax return accordingly.
Taxpayers can file their income tax returns online through the income tax portal, but first, they must know which ITR form is correct for filing the income tax return.
ITR Forms Types
The taxpayers must be aware of the ITR forms for filing income tax returns correctly to the IT department. The IT department has set different forms for different sets of taxpayers, let’s explore each one of them for you:
- ITR 1 commonly known as Sahaj: Individuals whose annual income is less than ₹50 lakhs from only one house property, salary/pension, and other sources can use the ITR-1 form.
- ITR-2 Form: It applies to individuals who are not eligible for ITR-1 and who earned money from the sale of property or assets, it’s beneficial for people who earned outside India. Taxpayers belonging to HUF (Hindu Undivided families and individuals can use this form.
- ITR-3: The form applicable to income tax filed by individuals/HUF who earn from business income or profession.
- ITR-4:The resident individuals/Firms with no income restriction can use this ITR Form.
- ITR-5: The form applies to persons who cannot file the ITR-7 form, the form covers BOI, Cooperative societies, Artificial Judicial persons, LLP, local authorities, partnership firms, and AOP.
- ITR-6: The companies can use this form except for the companies who claim an exemption under Section 11, meaning their income comes from property utilized for charitable purposes and religious activities.
- ITR-7: ITR-& forms apply to companies and persons who claim exemptions such as religious charitable trusts, Universities, political parties, scientific research institutions, etc.
Documents Required for the Income Tax Return Filing
Before filing your tax returns you must prepare the following documents for smoothly filing your tax returns for this year:
- PAN Card details
- Your Salary slips
- Aadhar card
- Bank Account Passbook
- Form 16 that your employer provides you, which contains details of the salary paid to you and TDS on it.
- Form 26AS which depicts your financial activities over a year.
Application Process for Income Tax Return Filing
Taxpayers can file the income tax online or through Java or Excel-based utilities provided on the income tax department website. The most convenient and fastest method is filling out income tax returns electronically.
Taxpayers can follow the below application guidelines for income tax return e-filing from anywhere with an internet connection:
- After you gather all the required documents, visit the income tax e-filing portal at https://incometaxindiaefiling.gov.in/, register using your PAN card, and create a new unique ID. The existing users can log in through their unique credentials and proceed to file their IT returns.
- You must select the appropriate ITR Form that applies to you according to your financial conditions and source.
- Select the tax regime that fits best with your financial goals and calculate your taxable income from gross income based on the regime tax slab taking tax deductions into account.
- After you enter all the details, validate the form through e-filing automatic validation and check your refund amount or tax liability based on the entries.
- Once you have validated your entries, submit the form and e-verify the IT return through Aadhar Card/ Digital Signature Certificate/ Net banking/Electronic Verification Code.
Penalty for Late Submission of Income Tax Return Filing
Taxpayers who fail to file their income tax return and the taxes they owe to the Income tax department are charged with penalties for late filing.
According to the Indian tax laws, the maximum penalty for taxpayers filing the returns after the deadline but before 31 December 2024 is up to ₹5000.
However, small taxpayers with income less than ₹5 lakh got relief from the tax penalty for late filing with a penalty of ₹1000. Taxpayers whose income is less than the basic exemption limit are exempted from the penalty charges.
The Income tax return is not only an obligation but also a responsibility of an Indian citizen, so file your tax returns before the tax deadline of 31 July 2024.