Income Tax Return Filing: Missed 8 Key Taxation Updates!

Do you know some taxation rules have been changed in India? If you are looking for an Income tax return filing must go through the 8 important rules, otherwise, your refund may stop. 31 July 2024 is the last date for ITR filing.

The current financial year of 2024-25, and people with income are looking for ITR filing. The government has also announced its last day to 31 July 2024. If you are a taxpayer, you must be aware of some important taxation rules that have been changed. Recently, it is important to know about the many tax rules that have changed because it may hamper your refund. Maybe your refund can be stopped.

Director of all India, ITR, Vikas Dahiya has also urged people to go through important rules otherwise it can affect their income tax refund. He also urged taxpayers not to ignore these changes in taxes and rules. Now it’s time to look at the 8 Vital taxation rule changes that you must know before filing your ITR (Income Tax Returns).

What Income tax Return (ITR filing)?

Income Tax Return (ITR filing) refers to the process of submitting your annual income details to the tax authorities. Eligible individuals and entities must file their ITR by the specified due date. The purpose of ITR filing is to report your income, claim deductions, and pay any taxes owed to the government. In India, nearly 2.5% people out of 121 Crore voting population pays income tax. According to Indian Budget of 2021-22, there were nearly 21 million taxpayers out of total voting population. In a social media handle ‘X‘, Income Tax Department has raised awareness about ITR filing and the process of validation of banks details, etc.

What is the new rule of Income tax return filing?

Staying up-to-date on changes in tax regulations is essential for accurate Income tax return filing and maximizing potential benefits. While the core filing process remains similar, even minor adjustments can impact your tax calculations and deductions. Here’s a breakdown of key updates for filing ITR in 2024:

1. Revised Tax Slabs and Rates

The government introduced new tax slabs under the optional new tax regime, offering lower rates but without exemptions and deductions. You can choose between the old regime with deductions or the new simplified regime. Compare both to see which benefits you more.

2. Standard Deduction for Pensioners

Pensioners now benefit from a new standard deduction of Rs 50,000 on their pension income, similar to the relief available for salaried individuals.

3. Changes in Section 80C and 80D Limits

The limit under Section 80C for investments like PPF and life insurance premiums remains at Rs 1.5 lakh. However, there’s an increased push for digital payments and health savings. The limit for medical insurance premiums under Section 80D has been raised, allowing higher deductions for yourself, your family, and senior citizen parents.

4. Higher Deduction for Home Loan Interest

First-time homebuyers can continue to enjoy the additional deduction of Rs 1.5 lakh for interest on home loans under Section 80 EEA. This encourages homeownership and provides substantial tax relief.

5. Updated TDS and TCS Provisions

There has been an expansion in the reach of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). This includes new TDS rates for non-salaried individuals and professionals and additional compliance requirements for e-commerce transactions.

6. Faceless Assessment and Appeals

The government has expanded the faceless assessment and appeal system to reduce human interaction and improve transparency. Familiarize yourself with the online procedures and respond to notices within deadlines.

7. Enhanced Reporting Requirements

ITR forms now require additional disclosures, particularly regarding foreign assets, income, and large transactions. Taxpayers with overseas investments or significant financial activities must provide detailed information to avoid penalties.

8. Relief for Senior Citizens

Senior citizens aged 75 and above with only pension and interest income are exempt from Income tax return filing if their bank deducts the necessary tax. This simplifies the process for seniors with straightforward income sources.

What is the process of filing an income tax return?

Now that you know all the new changes, let’s look at how to file income tax return online. Filing your income tax return (ITR) might seem complex, but it can be done efficiently by following these steps:

Access the Income Tax e-filing website: This is the official government portal for ITR filing.

Register or Log in: If you’re a new user, you’ll need to register using your PAN (Permanent Account Number). Present users can log in with their login data.

Enter Required Details: The website will guide you through entering relevant information like your PAN, assessment year, and income details.

Choose Filing Mode: Select between online or offline filing. Files may be submitted more quickly and conveniently online.

Select Your Status: Indicate your filing status based on your income and tax residency.

Pick the Right ITR Form: Different ITR forms exist for various income categories. Choose the form applicable to your situation.

Fill Out the ITR Form (Specifics Depend on Form): Carefully enter details for your income sources like salary, investments, deductions, and taxes paid. 

Review Tax Calculations (Online Income tax return filing): The portal will calculate your tax liability based on the information provided.

Validate Your Return: Ensure all details are accurate and complete before submission.

Verify Your ITR: Choose a verification method to electronically sign your return.

Submit Your ITR: Once verified, submit your return to complete the filing process.

If you have complex income sources or require further guidance on how to file income tax return online, consider consulting a tax professional.

Income Tax Return Filing Last Date

The income tax return filing last date for the assessment year 2024-25 (financial year 2023-24) is July 31, 2024. Meeting this deadline is crucial to avoid any late filing penalties.

These penalties can vary depending on the delay and your tax liability, so it’s best to file on itr filing date. However, if you miss the deadline, you can still file a belated return up to December 31, 2024.

Can we change the tax regime while filing ITR?

Yes, you can change tax regimes while filing your ITR. This flexibility allows you to compare the tax liability under both the old and new regimes and choose the one that minimizes your tax burden. Here’s a breakdown of how regime switching works for different taxpayer categories:

Salaried Individuals

You have the easiest option. You can switch between the new and old tax regimes every year, even if you opted for the new regime during TDS throughout the year. There’s no need for additional forms; you simply make your choice within the ITR form itself.

Individuals with Business / Profession Income

For business owners and professionals, there’s limited flexibility. You are only allowed to return to the previous regime once in your lifetime after selecting the new one. This switch requires filing Form 10-IE along with your ITR.

Conclusion

The income tax return filing last date for 2023-24 (assessment year 2024-25) is July 31st, 2024. Missing this date can result in penalties and delayed refunds. New tax rules include revised slabs, benefits for pensioners, and adjustments to medical & investment deductions. File online for convenience: register on the Income Tax e-filing website, enter your details, choose the right form, submit your return, and avoid last-minute stress!

FAQs:

Q. When is the income tax return filing last date?

In India, July 31, 2024, is the deadline for submitting your income tax return for the assessment year 2024–2025. To avoid penalties, it’s crucial to file your return by this date.

Q. Can we file ITR without CA?

Yes, using a chartered accountant’s services is not required to submit an ITR. All it takes to submit your ITR on your own without a CA’s assistance is to upload Form 16 throughout the filing procedure. 

Q. What happens if I don’t file ITR?

Taxpayers who do not file their ITR by the deadlines specified in Section 234A will be penalized with interest at the rate of one percent (1% a month) on the amount of unpaid taxes.