Itr due date Extension For AY 2024-25:DetailS are here

ITR due date extension for assessment year 2024-25

The Income Tax Return (ITR) filing season is a crucial period for taxpayers in India. For Assessment Year (AY) 2024-25, there have been significant developments, including the extension of the due date for filing ITRs. This article provides a comprehensive overview of the ITR due date extension, the reasons behind it, and key points taxpayers should keep in mind. Using trending keywords, we aim to highlight the main aspects of this important update.

Understanding the ITR Due Date Extension

The Government of India periodically extends the due date for filing Income Tax Returns to accommodate various factors affecting taxpayers. For AY 2024-25, the original due date for most taxpayers was July 31, 2024. However, the government has announced an extension, providing taxpayers additional time to file their returns without incurring penalties.

Reasons for the Extension

1. Technical Glitches and Portal Issues: The Income Tax Department has introduced a new e-filing portal to streamline the process. However, taxpayers have reported several technical glitches, making it challenging to file returns on time. The extension addresses these issues, ensuring that all taxpayers have a smooth filing experience.
2. COVID-19 Pandemic Impact: The lingering effects of the COVID-19 pandemic have disrupted businesses and personal finances. The extension provides much-needed relief to taxpayers who are still recovering from the pandemic’s financial impact.
3. Complexities in Tax Computations: Changes in tax laws and increased compliance requirements have made tax computations more complex. The additional time allows taxpayers and their advisors to ensure accurate filings.
4. Appeals from Taxpayers and Professionals: Various taxpayer associations and professional bodies have appealed to the government, citing difficulties in meeting the original deadline. The extension is a response to these appeals, acknowledging the challenges faced by taxpayers.

Key Highlights of the ITR Due Date Extension

1. New Due Date: The extended due date for filing ITRs for AY 2024-25 is now August 31, 2024. This extension applies to individual taxpayers, Hindu Undivided Families (HUFs), and those whose accounts do not require an audit.
2. Penalty Avoidance: Taxpayers who file their returns within the extended deadline can avoid late filing fees and penalties. This is particularly beneficial for those who may have missed the original deadline due to unforeseen circumstances.
3. Revised Return Filing: Taxpayers who have already filed their returns but wish to make corrections can file a revised return by the new deadline. This ensures that any errors or omissions can be rectified without incurring penalties.
4. Interest on Tax Liability: While the extension allows for late filing without penalties, taxpayers with outstanding tax liabilities must note that interest under Section 234A will still be applicable from the original due date. It is advisable to pay any outstanding taxes as soon as possible to minimize interest charges.

Steps to File ITR for AY 2024-25

Filing your ITR within the extended deadline is crucial. Here are the steps to ensure a hassle-free filing process:

1. Gather Required Documents: Collect all necessary documents, including Form 16, interest certificates, investment proofs, and other income-related documents.
2. Choose the Correct ITR Form: Depending on your income sources and category, select the appropriate ITR form. The Income Tax Department provides a guide on choosing the right form.
3. Register/Login to the e-Filing Portal: Visit the Income Tax Department’s e-filing portal and register or log in using your PAN and password.
4. Fill in the Details: Enter your personal information, income details, deductions, and other relevant information. Ensure accuracy to avoid discrepancies.
5. Verify and Submit: After filling in the details, verify the information, and submit your return. You will receive an acknowledgment receipt (ITR-V), which needs to be verified.
6. E-Verification: Complete the e-verification process using methods such as Aadhaar OTP, net banking, or by sending a signed physical copy to the Centralized Processing Centre (CPC).

Common Mistakes to Avoid

To ensure a smooth ITR filing process, avoid these common mistakes:

1. Incorrect Personal Details: Ensure that your name, PAN, and contact information are accurate and match your records.
2. Mismatch in Income Details: Cross-check income details with your Form 16, bank statements, and other financial documents to avoid discrepancies.
3. Ignoring Exempt Income: Declare exempt income such as agricultural income, if applicable. Non-disclosure can lead to penalties.
4. Incorrect Bank Account Details: Provide accurate bank account details for refunds. Incorrect information can delay the refund process.
5. Not Claiming Deductions: Ensure you claim all eligible deductions under Sections 80C, 80D, etc., to reduce your taxable income.

Benefits of Filing ITR on Time

1. Avoid Penalties: Timely filing helps avoid penalties and late fees, ensuring compliance with tax laws.
2. Faster Processing of Refunds: Early filing leads to quicker processing of refunds, if applicable.
3. Loan and Visa Applications: Acknowledgment of ITR filing is often required for loan and visa applications, making timely filing crucial.
4. Carry Forward Losses: Filing within the deadline allows you to carry forward losses to future years, reducing future tax liabilities.

Summary:

The extension of the ITR due date for AY 2024-25 is a significant relief for taxpayers, allowing them more time to comply with tax filing requirements. By understanding the reasons behind the extension, key highlights, and the steps involved in filing returns, taxpayers can ensure a hassle-free experience. Avoiding common mistakes and leveraging the benefits of timely filing will help in maintaining compliance and optimizing financial health. Stay informed and proactive to make the most of this extension and ensure your tax matters are in order.