INCOME TAX RETURN FILING 2024-2025

INCOME TAX RETURN FILING

income tax return filing 2024

The Income Tax Return (ITR) filing for the assessment year 2024-25 (for income earned during the financial year 2023-24) will follow a similar process to previous years but with possible updates to tax laws, deadlines, and procedures. Below is a detailed guide to help you with filing your ITR for AY 2024-25 in India, which is for income earned in FY 2023-24. Similar principles can apply to other countries, though tax regulations and forms may differ.

1. Income Tax Return Filing Deadline (India)

• For individuals (non-audited): The due date for filing the income tax return is typically 31st July 2024.
• For businesses (requiring audit): The deadline is 30th September 2024.
• For taxpayers who are claiming refunds or corrections: Late filing is allowed, but it will incur penalties.

Note: The tax department may extend deadlines based on certain circumstances, so keep an eye on official announcements.

2. Determine Your Income Sources

For the financial year 2023-24, ensure you gather all income-related documents:

1. Salary Income:

• Form 16: Issued by your employer (for salaried individuals).
• Salary slips for other income details, such as bonuses, allowances, and perks.

2. Income from Other Sources:

• Bank Statements: To show interest earned on savings accounts, fixed deposits, etc.
• Dividend Income: Statements or proof from mutual funds or companies.

3. Income from Capital Gains:

• Sale of Property, Stocks, Mutual Funds: Details of transactions, capital gains reports, or brokerage statements.

4. Rental Income:

• Rent receipts or lease agreements.
• Details of property-related expenses (maintenance, property taxes, etc.).

5. Business Income (if applicable):

• Profit & Loss Account and Balance Sheet.
• Invoices and receipts for sales or services.

6. Other Income:

• Income from freelancing, consultancy, or any other miscellaneous sources.

3. Choose the Correct ITR Form

The Income Tax Department provides multiple forms based on the type of taxpayer and the sources of income.

• ITR-1 (Sahaj): For individuals earning salary, pension, and interest income with total income up to ₹50 lakhs.
• ITR-2: For individuals and HUFs (Hindu Undivided Families) with income from salary, capital gains, etc., but not from business.
• ITR-3: For individuals and HUFs having income from a business or profession.
• ITR-4 (Sugam): For those opting for the presumptive taxation scheme (section 44AD, 44AE, or 44ADA) or those with business income.
• ITR-5, ITR-6, ITR-7: For other specific types of taxpayers, such as companies, trusts, etc.

4. Calculate Your Total Taxable Income

Income Calculation:

Add up all your income sources (salary, business, capital gains, etc.).

Deductions:

You can reduce your taxable income by claiming eligible deductions under various sections.

• Section 80C: Deduction for investments in life insurance, PPF, NSC, ELSS, and other specified instruments (up to ₹1.5 lakh).
• Section 80D: Health insurance premiums for self and family.
• Section 80E: Deduction on interest paid for an education loan.
• Section 80G: Donations to charitable institutions.
• Section 10(14): HRA (House Rent Allowance) exemption.

Taxable Income Calculation:

• Gross Income (from all sources)
• Less: Deductions (80C, 80D, 80E, etc.)
• Equals: Net Taxable Income.

5. Apply Tax Slabs

For Assessment Year 2024-25, the income tax slabs under the old tax regime and new tax regime are as follows:

Old Tax Regime (with deductions and exemptions):

New Tax Regime (without deductions or exemptions):

You can choose the old tax regime (with exemptions and deductions) or the new tax regime (without exemptions but with reduced tax rates).

6. Paying Taxes

• TDS (Tax Deducted at Source): If tax has already been deducted by your employer or any other source, it will be shown in Form 26AS.
• Advance Tax: If your total tax liability exceeds ₹10,000, you are required to pay advance tax in installments during the year.
• Self-assessment Tax: If there is any balance tax to be paid after TDS and advance tax, it should be paid before filing the return.

7. File Your ITR Online

You can file your return using the Income Tax E-filing Portal:

1. Log in to the portal: https://www.incometax.gov.in/iec/foportal/
2. Fill in the correct ITR form based on your income details.
3. Verify all details carefully (income, deductions, TDS, etc.).
4. Submit the form: After filling out the form, submit it online.

8. Verify Your ITR

After submission, your ITR needs to be verified. You can verify your return through:

• Aadhaar OTP (if linked with your PAN).
• Net Banking (if you have a net banking account linked to PAN).
• Bank ATM for e-verification.
• Physical ITR-V: You can send a signed ITR-V form to the Centralized Processing Center (CPC), Bangalore, if you choose not to e-verify.

9. Track the Status of Your Return

Once your return is filed, you can track the status of your return on the portal. The processing of the return will typically take a few weeks. If your return is found to be accurate and there is a refund, you will be notified.

10. Refunds

• If you have paid more tax than due (through TDS or advance tax), the income tax department will process your refund.
• The refund will be directly credited to your bank account linked with PAN.

11. Late Filing

• Penalties for Late Filing: If you miss the due date, a penalty may be imposed under Section 234F:
  • ₹1,000 if the return is filed after the due date but before December 31 of the assessment year.
  • ₹5,000 if filed after December 31.
• If you don’t file your return on time, you also lose the ability to carry forward losses (e.g., capital losses).

Final Advice:

1. Recheck your data: Ensure that all income, deductions, and TDS are correctly mentioned in your ITR form.
2. Tax-saving options: If you are yet to invest in tax-saving instruments, you can still invest before the end of the financial year (March 2024) to claim deductions under Section 80C and other sections.
3. Use professional help if necessary: If you have complex income sources, business income, or need assistance with tax-saving strategies, consider consulting a tax professional.

Let me know if you need more specific information or assistance with any of these steps!