The last date for filing Income Tax Return or ITR for the financial year 2023-24 (FY2023-24) is not far away, and if you want to avoid paying penalty and interest, then this work should be done before July 31, 2024.
Filing ITR is mandatory for every person who has earned more money than the basic tax-free income limit during a financial year, or has made certain specific transactions even if the income is less than the tax-free income limit.
Many friends ask questions…?
Many colleagues and friends often ask why they should file ITR if their total annual income is less than ₹5,00,000 as per the old tax regime or ₹7,00,000 as per the new tax regime, and their tax liability is zero due to section 87A of the Income Tax Act. That is why it is important to write this news so that everyone knows for whom filing ITR is mandatory.
If the annual income is more than the basic tax-free income…
Actually, as per the rules, if TDS has been deducted from your income at any time during the year, then it is mandatory for you to file ITR, even if ITR is filed to claim refund. Apart from this, filing ITR is necessary for all those whose total annual income is more than the basic tax-free income limit.
Also Read: ITR Form is necessary while filing Income Tax Return, which form will be perfect for you?
By the way, let us tell you – under the old tax regime, the basic tax-free income limit for taxpayers up to 60 years of age is ₹ 2,50,000, for senior citizen taxpayers from 60 to 80 years of age, the basic tax-free income limit is ₹ 3,00,000, and for super senior citizen taxpayers above 80 years of age, the basic tax-free income limit is ₹ 5,00,000. On the other hand, in the new tax regime, the basic tax-free income limit for taxpayers of all age groups is ₹ 3,00,000.
You will get refund only when you file ITR…
Note here, those whose total annual income is more than the basic tax-free income limit, but taxable income is less than ₹5,00,000 in the old regime and ₹7,00,000 in the new regime, their tax liability will remain zero, and even if TDS has been deducted, a refund will be received. But that refund will be received only when you file ITR.
For whom is it mandatory to file ITR…?
Apart from these, ITR is mandatory for those people whose professional income exceeds ₹10,00,000 during a financial year, or whose total deposits in one or more bank savings accounts exceed ₹50,00,000. ITR is mandatory for those people who have received any kind of income from abroad. Those who spend ₹2,00,000 or more on foreign travel during a financial year are also mandatory to file income tax returns.
ITR is mandatory for those people whose TDS deduction is more than ₹25,000 during a financial year. And yes, no matter how less the income is, it is mandatory for those people to file ITR whose electricity bill is more than ₹1,00,000 in a year.
Belated ITR also causes loss…
Also keep in mind, if you do not file ITR before July 31, 2024 for the financial year 2023-24 (FY2023-24), i.e. assessment year 2024-25 (AY2024-25), despite being required, then you will be able to file a delayed ITR (Belated ITR). But if you do not file a Belated ITR, then interest will be charged at the rate of 1 percent per month on the outstanding tax amount.
Apart from this, that is, apart from interest on the outstanding tax amount, a penalty of ₹ 5,000 will also be charged from such taxpayer (if the annual income is less than ₹ 5,00,000, then the penalty amount will be ₹ 1,000, and if the total income is less than the basic tax-free income limit, then the penalty will not be charged). Not only this, if you file a Belated ITR, then you will not be given any kind of interest on the refund (if any) received.
