When we enter a new financial year, the first thing that comes to mind is tax filing. The due date for income tax filing for the year starts looming. It’s no secret, but it does. Filing taxes is a crucial part of the financial responsibility of Indian citizens.
Today, we will share a tax filing checklist to help make the income tax return filing process for 2024 easier for you!
Tax Filing in India
Tax filing refers to the process of submitting your income tax return (ITR) to the Income Tax Department. It’s a declaration of your income, deductions, and the taxes paid during the FY.
Income tax return filing is required for individuals whose income exceeds the basic exemption limit. The ITR forms vary based on the type of income, such as annual salary, overall business profits, capital gains, etc.
Is Income Tax ITR Filing Compuslory
Yes, according to Indian tax laws, you must file your income tax returns if your income exceeds the basic exemption limit. Tax rates are predetermined for taxpayers. In case you fail to do income tax filing on time, you will incur late filing fees. This ultimately effects your credibility as a loan applicant.
Now, how do you know which ITR form is suitable for your income tax return filing?
Type of ITR Forms in India
The Central Board of Direct Taxes (CBDT) introduced Income Tax Return Forms on February 10th and 14th, 2023.
- ITR Form 1 (Sahaj) is for resident individuals with income up to Rs. 50 lakh, covering salary, one house property, other sources, and agricultural income up to Rs. 5 thousand.
- ITR Form 2 is for individuals and HUFs without business or professional income, excluding those eligible for Sahaj.
- ITR Form 3 is for individuals and HUFs with business or professional income.
- ITR Form 4 (Sugam) suits individuals, HUFs, and firms (excluding LLPs) with total income up to Rs. 50 lakh, involving business and professional income under sections 44AD, 44ADA, or 44AE.
- ITR Form 5 is for entities like partnership firms, LLPs, etc.
- ITR Form 6 is for companies not claiming exemption under section 11.
- ITR Form 7 is for trusts, political parties, charitable institutions, etc., with exempt income under the Act.
Income Tax ITR Filing Due Date
The due date for filing ITR for various categories of taxpayers are as follows:
• For individuals, HUFs, AOPs, and BOIs: July 31, 2024
• For businesses requiring audit: October 31, 2024
• For businesses requiring transfer pricing reports: November 30, 2024
Income Tax Filing Last Date 2024
The last date for your income tax ITR filing without attracting a late fee for the financial year 2023-24 (AY 2024-25) is July 31, 2024. If you miss this deadline, you can still file a belated return by December 31, 2024, but it may involve a penalty.
Tax Deductions in India
Some of the deductions for the financial year 2023-24 include:
• Standard deduction of ₹50,000 for salaried individuals.
• Deduction under Section 80C for investments in ELSS, PPF, life insurance, etc.
• Deduction for health insurance premium under Section 80D.
• Deduction for interest on home loan under Section 24.
| Section | Category | Description | Maximum Benefit |
| 24(b) | House Property Interest | Interest paid on housing loan & improvement loan for self-occupied property | ₹ 2,00,000 |
| 80C, 80CCC | Various Payments | Life insurance premium, Provident fund, Tuition fees, Housing loan principal, etc. | ₹ 1,50,000 (combined) |
| 80CCD(1) | Pension Scheme | Contribution to the pension scheme of the Central Government | ₹ 1,50,000 |
| 80CCD(1B) | Additional Pension | Contribution to the pension scheme of the Central Government (additional) | ₹ 50,000 |
| 80CCD(2) | Employer’s Contribution | Contribution by employer to pension scheme of Central Government | 10% to 14% of salary |
| 80CCH | Agnipath Scheme | Contribution to the Agnipath Scheme | Full contribution |
| 80D | Health Insurance | Health insurance premiums & preventive health check-ups | ₹ 25,000 to ₹ 50,000 |
| 80DD | Disabled Dependent | Maintenance or medical treatment of disabled dependent | ₹ 75,000 to ₹ 1,25,000 |
| 80DDB | Medical Treatment | Medical treatment for specified diseases | ₹ 40,000 to ₹ 1,00,000 |
| 80E | Education Loan | Interest payments on loan for higher education | Full interest paid |
| 80EE | Home Loan Interest | Interest on loan for residential house property (loan sanctioned between Apr 2016 – Mar 2017) | ₹ 50,000 |
| 80EEA | First-Time Home Buyer | Interest on loan for first-time home buyers (loan sanctioned between Apr 2019 – Mar 2022) | ₹ 1,50,000 |
| 80EEB | Electric Vehicle Loan | Interest on loan for electric vehicle purchase (loan sanctioned between Apr 2019 – Mar 2023) | ₹ 1,50,000 |
| 80G | Donations | Donations to prescribed funds, charitable institutions, etc. | 100% to 50% deduction |
| 80GG | Rent Paid | Rent paid for house (applicable to self-employed or HRA not part of salary) | As per calculation |
| 80GGA | Scientific Research | Donations for scientific research or rural development | As per category made by government such as Research Association or University, College, or other Institution for Scientific Research, etc. |
| 80GGC | Political Donations | Donations to political party or electoral trust | As per donation |
| 80TTA | Savings Account Interest | Interest received on savings accounts by non-senior citizens | ₹ 10,000 |
| 80TTB | Senior Citizens’ Deposits | Interest received on deposits by resident senior citizens | ₹ 50,000 |
| 80U | Disability | Deductions for resident individuals with disability | ₹ 75,000 to ₹ 1,25,000 |
What are the Benefits of Income Tax Return Filing?
You can benefit in numerous ways if you do timely income tax filing:
• Loan Approval: Timely ITR filings improve credibility and ease loan approval processes.
• Refund Claims: It enables claiming refunds for excess tax paid during the financial year.
• Visa Processing: Embassies often require past ITR receipts as proof of income during visa applications.
Tax filing is not just a statutory requirement but also a crucial component of your financial health and planning.
Penalty for Late Income Tax Return Filing
The new section 234F imposes a late filing fee if you submit your income tax return after the due date. The late fee for ITR varies based on the timing of your return submission.
Submitting the return on or before the 31st day of December of the assessment year incurs a fee of Rs 5,000.
However, filing the return after the 31st day of December of the assessment year increases the fee to Rs 10,000.
If your annual income is less than Rs 5 lakh, the fee caps at a maximum of Rs 1,000.
Penal Interest on Due Taxes
Delaying the filing of tax returns also results in interest charges if income taxes are due. Interest begins accruing from the first instalment of advance tax.
To avoid interest charges, experts always recommend filing your tax return early, between April 1 and July 31, every financial year.
Now that you know all the important dates for income tax return filing for 2024, here is a tax filing checklist that can help you streamline the process.
Simplified Checklist for Stress-Free Tax Filing
Tax Filing Checklist Before you file your income tax for 2024, ensure you have the following:
- PAN and Aadhaar number
- Form 16 from your employer
- Bank statements
- Proof of investments
- Details of deductions claimed
- Previous year’s tax return
As the income tax return filing season looms closer, it’s time to plan ahead to avoid any last-minute headaches.
Here’s a ten-point checklist to ensure smooth sailing through the tax compliance process.
Choosing the Right ITR Form
Ensure you pick the correct Income Tax Return (ITR) form for the fiscal year 2023-24 based on your circumstances.
Determining Residential Status
Your physical presence in India during the fiscal year 2023-24 determines your residential status. Ensure you meet the criteria for residency or non-residency to accurately report your income.
Choosing Between Tax Regimes
Evaluate whether to opt for the new default tax regime or stick with the earlier one. This choice can significantly impact your tax liabilities.
Know the difference between old and new tax regimes.
Downloading 26AS and AIS
Don’t forget to download the latest Form 26AS and Annual Information Statement (AIS) for the fiscal year 2023-24 to cross-verify your income and tax credits.
Documenting Income Sources
Maintain proper documentation for various sources of income, including salary, investment income, rental income, business income, and family member’s income.
Claiming Deductions and Exemptions
Keep records of tax deductions for insurance premiums, donations, and eligible investments. Preserve proofs for capital gains exemptions and foreign tax credits.
Foreign Tax Credit and Tax Residency Certificate
Resident individuals can claim credit for foreign taxes paid on doubly taxed foreign income. Non-residents should obtain a tax residency certificate and evaluate treaty benefits.
Completing Key Schedules
Ensure you provide details of assets, liabilities, directorships, and unlisted equity shares if your income exceeds ₹50 lakhs. Complete Schedule FA if you’re an ordinary resident with foreign assets and income.
Timely Tax Filings
Don’t procrastinate! Ensure you complete your income tax filing on time to avoid penalties and stay compliant with tax regulations.
Stay Informed and Confident
Lastly, stay informed about tax laws and regulations to approach the tax season with confidence.
Remember, it’s important to file your taxes on time to avoid penalties and ensure compliance with the tax laws.
Conclusion
Timely income tax filing forms an important part of financial responsibility. It helps ensure compliance, aids in easy loan approvals, and much more. By choosing the correct ITR form, understanding available deductions, and adhering to the ITR filing due date, you can maintain your financial records in good standing.
FAQs| Tax Filing 2024
Income Tax Return (ITR) filing means reporting your yearly taxable income, applicable deductions, and tax payments to the Income Tax Department in India.
You can file your Income Tax Return (ITR) for a financial year from April 1st of the following year until July 31st of the assessment year.
The deadline to file an Income Tax Return without a late fee for the financial year 2023-24 is July 31, 2024.
Source– incometaxindia.gov.in, incometaxindia.gov.in, incometax.gov.in
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