Why You Should File Your Income Tax Return with Utmost Care in 2024
Filing your income tax return can be a highly stressful task, especially as deadlines approach. Procrastination adds unnecessary stress that can be easily avoided with timely preparation. If you haven’t organized your paperwork yet, now is the critical time to do so. However, it’s essential to be cautious of common mistakes that can lead to significant issues.
Selecting the Appropriate ITR Form
Choosing the correct ITR form is crucial for accurately processing your returns. The appropriate form depends on your type of income and taxpayer category. For the financial year 2023-24, the Income Tax Department offers seven forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. These forms cater to various income sources and taxpayer categories, including individuals, HUFs, and companies.
Clear instructions are provided by the tax department on which form is suitable for which taxpayer. For instance, if you earn income from capital gains or have a total income exceeding ₹50 lakh, you cannot use Form 1. Using the incorrect form may result in your tax return being deemed invalid, leading to missed information or unreported income, which can incur interest and penalties.
Also Read: Income Tax Return (ITR) Filing Requirements in India for NRIs as per I-T Act 1961
Quoting the Wrong Assessment Year
When filing returns, providing the correct Assessment Year (AY) is crucial. For FY 2023-24, the corresponding AY is 2024-25. Incorrectly mentioning the AY can lead to issues such as double taxation and unnecessary penalties.
Importance of Filing Your Income Tax Return with Utmost Care
Filing your income tax return diligently is essential to avoid penalties or tax notices due to errors. Maintaining accurate records, claiming eligible deductions, and reporting all sources of income ensures compliance with tax laws and accurate tax payments.
If you mistakenly use an incorrect form, you can file a revised return. However, deliberate underreporting or choosing the wrong ITR form to misreport income can result in penalties ranging from 100% to 300% of the tax amount due.
Deadline for Filing an ITR
The last date to file an income tax return (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) is July 31, 2024. If you miss this deadline, you can still file a belated return by December 31, 2024.
Verify ITR Form Within 30 Days of Filing
Filing your tax return involves more than just submitting the ITR form. It’s essential to verify the return within 30 days of filing. Failure to verify will result in the IT department not processing your tax return and deeming it ‘invalid’. If you receive a notice and do not respond within the given timeframe, it will be considered as if you never filed a return, leading to applicable non-filing fees and penalties.
Filing your income tax return with utmost care ensures compliance with tax regulations, helps you avoid penalties, and guarantees that your tax payments are accurate. Start early, choose the correct ITR form, and verify your return to stay on the right track.
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