Filing your Income Tax Return (ITR) is an important task that shows your earnings over the fiscal year. It's imperative to finish this process to avoid penalties. For the financial year 2023-24 (assessment year 2024-25), the deadline for filing ITRs is July 31, 2024.
Also, there is an option to file a belated return until December 31, 2024, but this is with a penalty. The penalties for late filing of an ITR will vary on your income level.
For people with a net taxable income over Rs 5 lakhs for the financial year 2023-24, filing a belated return can incur a penalty of up to Rs 5,000.
For people with a net taxable income of Rs 5 lakhs or less, the maximum penalty is restricted to Rs 1,000.
However, people whose taxable income is below the basic exemption limit and who file an ITR to claim a refund are free from these penalties.
The taxable income threshold relates to gross taxable income before deductions are applied.
Being tax-compliant is vital for various reasons.
As it is a legal requirement to file your income tax return, and failing to do so can cause penalties and potential legal consequences.
Also, timely filing can make you eligible for specific tax benefits or refunds. Moreover, late filing may also cause interest on any outstanding taxes from the initial due date until payment. You may also lose to take forward specific tax deductions or losses.
Thus, it is advisable to submit your ITR early to avoid any such penalties. Collecting important documents, such as salary slips and investment proofs, ahead of time can speed up the process.
