ITR filing: As the deadline to file Income Tax returns (ITR) approaches, those who are still waiting to collect details about how to file their returns should note that missing the deadline can have serious consequences.
The deadline for submitting income tax returns for the financial year 2023-2024 (Assessment Year 2024-2025) is July 31, 2024. This date marks the conclusion of this month. Individuals who fail to meet the July 31 deadline have the option to file a belated return by December 31, 2024, for the financial year 2023-2024 / Assessment Year 2024-2025.
According to the latest regulations of the Income Tax department, if a taxpayer fails to file their ITR by the deadline, they will automatically be subject to the new tax regime, forfeiting their ability to opt for the old regime for that financial year. If an individual misses the last date to file ITR, the belated ITR will be filed under the new tax regime.
When it comes to filing your Income Tax Return (ITR), it’s important to note that taxpayers have the option to select a tax regime. The standard due date for filing your ITR is July 31st. Meeting this deadline signifies that you are also choosing the tax regime applicable to salaried individuals.
India currently operates two tax regimes: the old regime and the new regime, which was introduced in 2020. The new regime includes updated tax slabs and concessional rates, but it comes with restrictions on claiming certain deductions and exemptions, under sections 80CCD (2) and 80JJA (for business income). It is important to note that if individuals do not actively choose a tax regime, the default option will be the new tax regime.
In order to provide further relief to individual taxpayers, the new tax regime provide the following:
· The basic exemption limit was raised to Rs. 3 lakhs from Rs. 2.5 lakhs.
· The standard deduction from salary u/s. 16 was reintroduced.
· A 100% rebate of income-tax u/s. 87A has been provided to individuals having total income up to Rs. 7 lakhs
Conversely, the Old Tax Regine adheres to a progressive tax framework that incorporates a range of exemptions and deductions. Under this system, elevated income brackets are subject to higher tax rates.
How to change Tax Regime while filing ITR?
If you prefer to choose the Old Tax Regime over the New Tax Regime, it is necessary to submit Form 10IEA before proceeding with filing your Income Tax Return (ITR). This particular form pertains only to individuals and Hindu Undivided Families (HUFs) earning income from business or profession and filing either ITR-3 or ITR-4.
On the other hand, if you qualify for filing ITR-1 or ITR-2, you have the convenience to directly opt for the old tax regime within the ITR form itself.