Income Tax Return Filing for AY 2024-25

Income Tax Return Filing for AY 2024-25 has been started. The last date to file Income Tax Return (ITR) for FY 2023-24 (AY 2024-25) without a late fee is 31st July 2024.  File Your ITR within due date in order to avoid penalty and to avail tax saving investment benefits under old tax regime. Order Now. 

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for AY 2024-25
₹ 999/-
  • Computation
  • ITR acknowledgment
  • Filed ITR form
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Cover Income from Salary, Rental and Business only
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Individual Income tax Return Filing

As the new financial year rolls in, it’s time to gear up for filing your Income Tax Return (ITR) for the Assessment Year (AY) 2024-25. Filing your ITR not only ensures you remain compliant with tax regulations but also helps in claiming refunds and establishing a credible financial record. Here’s a detailed guide to assist you through the ITR filing process.

Why File Income Tax Return 

Filing your ITR is crucial for several reasons:

  • Legal Compliance: It is mandatory for individuals earning above the basic exemption limit.
  • Claiming Refunds: If excess tax has been deducted, you can claim a refund by filing your ITR.
  • Loan and Visa Applications: ITR receipts are often required for loan approvals and visa applications.
  • Avoid Penalties: Timely filing prevents penalties and interest on tax dues.
Click here to know more ITR fiing for Last 3 year
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Income Tax Return Filing Fees

ITR Filing with Computation

for AY 2024-25
₹ 999/-
  • Computation
  • ITR acknowledgment
  • Filed ITR form
Order Now
Cover Income from Salary, Rental and Business only

ITR filing with Balance sheet

for AY 2024-25
₹ 1999/-
  • Computation with ITR
  • Balance sheet and Profit and Loss Account
  • CA Attestation with UDIN
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Cover Income from Salary, Rental and Business only

Required Documents For ITR filing

  • PAN Card
  • Aadhaar Card
  • Bank Statement
  • Email ID and Mobile Number
  • Tax Saving Investment Detail (if any)
  • Business name (if any)
  • Business Activity ( if any)
  • Any Other Detail
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Step-by-Step Guide to Filing ITR for AY 2024-25

1. Determine Your Income Sources

  • Salary: Income from employment.
  • House Property: Rental income from property.
  • Business or Profession: Income from self-employment or business.
  • Capital Gains: Profit from the sale of assets like shares or property.
  • Other Sources: Interest income, dividends, etc.

2. Choose the Correct ITR Form

  • ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, and other sources.
  • ITR-2: For individuals with income from capital gains, multiple house properties, or foreign income/assets.
  • ITR-3: For individuals with income from business/profession.
  • ITR-4 (Sugam): For individuals opting for the presumptive taxation scheme.

3. Collect Required Documents

  • Form 16: Provided by your employer, detailing your salary and tax deductions.
  • Form 26AS: A consolidated tax statement available on the Income Tax Department’s website.
  • Bank Statements: For interest income and other transactions.
  • Investment Proofs: For claiming deductions under sections like 80C, 80D, etc.
  • Property Details: For income from house property.
  • Capital Gain Statements: For income from the sale of assets.

4. Calculate Your Taxable Income

  • Gross Total Income: Sum of all income sources.
  • Deductions: Under sections 80C, 80D, 80G, etc.
  • Taxable Income: Gross Total Income minus Deductions.

5. Compute Tax Liability

  • Use the applicable income tax slabs to calculate your tax liability.
  • Deduct any advance tax or TDS already paid.

6. File Your ITR Online

  • Register/Login: Visit the Income Tax e-filing portal www.incometax.gov.in  and log in using your credentials.
  • Select Form: Choose the applicable ITR form and select the assessment year 2024-25.
  • Fill Details: Enter your personal details, income details, and tax computation.
  • Validate: Validate the details entered.
  • Upload: Upload any required documents.
    E-Verify: Complete the process by verifying your return using Aadhaar OTP, net banking, or other available method

Last date to file ITR for A.Y. 2024-25?

ITR filing last date for Financial Year 2023-24 (AY 2024-25) is July 31, 2024. However, if you miss filing within the due date, you can still file a belated return before December 31, 2024.

Common Deductions and Exemptions

Filing your Income Tax Return (ITR) can be less taxing if you are aware of the various deductions and exemptions available under the Income Tax Act. These benefits can significantly reduce your taxable income and thereby lower your tax liability. Here’s a comprehensive list of common deductions and exemptions you should consider for AY 2024-25:

Section 80C: Deductions on Investments

  1. Public Provident Fund (PPF)
    Investments up to ₹1.5 lakh are eligible for deduction.
  2. Employees’ Provident Fund (EPF):
    Contributions by employees to EPF are deductible.
  3. National Savings Certificate (NSC):
    Investments qualify for deduction under Section 80C.
  4. Equity-Linked Savings Scheme (ELSS):
    Investments in ELSS funds are eligible for deductions.
  5. Life Insurance Premiums:
    Premiums paid for life insurance policies can be deducted.
  6. Sukanya Samriddhi Yojana (SSY):
    Contributions to SSY accounts are deductible.
  7. 5-Year Bank Fixed Deposit:
    Fixed deposits with a tenure of 5 years with banks qualify for deduction.
  8. Home Loan Principal Repayment:
    Repayment of the principal amount of a home loan is eligible for deduction.
  9. Tuition Fees:
    Tuition fees paid for up to two children are deductible.

Section 80D: Deductions for Medical Insurance

  1. Health Insurance Premiums:
    >> Up to ₹25,000 for self, spouse, and dependent children.
    >> Additional ₹25,000 for parents (₹50,000 if parents are senior citizens).

  2. Preventive Health Check-Up
    Deduction up to ₹5,000 within the overall limit of ₹25,000/₹50,000.

Section 80E: Deduction on Education Loan Interest

Interest paid on education loans for higher studies is fully deductible.

Section 80G: Deductions for Donations

  • Donations to specified relief funds and charitable institutions are eligible for deduction.
  • Deduction amount can be 50% or 100% of the donation amount, subject to certain limits.

Section 80GG: Deductions for House Rent Paid

  • Deduction for house rent paid if HRA is not received.
  • Maximum deduction is ₹5,000 per month or 25% of total income, whichever is less.

Section 80GGA: Deductions for Donations for Scientific Research or Rural Development

  • Contributions made to certain research associations or institutions are deductible.

Section 80TTA: Deductions on Savings Account Interest

  • Interest up to ₹10,000 earned from savings accounts with banks, co-operative banks, and post offices is deductible.

Section 80TTB: Deductions on Interest for Senior Citizens

  • Interest income up to ₹50,000 from deposits with banks, co-operative banks, and post offices for individuals aged 60 years and above is deductible.

Section 10(14): Allowances Exempt Under Special Conditions

  1. House Rent Allowance (HRA)
    Exempt up to the minimum of:

    • Actual HRA received

    • 50% of salary (for metros) or 40% (for non-metros).

    • Rent paid minus 10% of salary.

  2. Leave Travel Allowance (LTA)
    Exempt for travel expenses for self and family, subject to certain conditions.

  3. Children Education Allowance
    Up to ₹100 per month per child (maximum 2 children).

  4. Hostel Expenditure Allowance
    Up to ₹300 per month per child (maximum 2 children).

Section 24(b): Deduction on Home Loan Interest

  • Interest on home loan up to ₹2 lakh for a self-occupied property is deductible.

Section 10(10D): Exemption on Life Insurance Maturity Proceeds

  • Maturity proceeds of life insurance policies are exempt, subject to certain conditions.

Important Dates for ITR for AY 2024-25

Category of TaxpayerDue Date for Tax Filing – FY 2023-24
*(unless extended)
Individual / HUF/ AOP/ BOI   
(books of accounts not required to be audited)		31st July 2024
Businesses (Requiring Audit)31st October 2024
Businesses requiring transfer pricing reports  
(in case of international/specified domestic transactions)		30th November 2024
Revised Income Tax return31 December 2024
Belated/late Income Tax return31 December 2024
Updated return31 March 2027

Drawbacks of late ITR filing

The following are the disadvantages of filing a belated return:

  1. Interest may be applicable under sections 234A, 234B and 234C.
  2. A late fee will be levied under Section 234F while filing a belated return:
    • Gross total income is up to Rs 2.5 lakh: No Penalty
    • Gross total income is Rs 2.5 lakh – Rs 5 lakh: Rs 1,000 fee
    • Gross Total income more than Rs 5 lakh: Rs 5,000 fee
  3. If you file a loss return after the due date, many losses, like business and capital losses, cannot be carried forward for set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
  4. Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.

Types of Income Tax Return Forms

There are various types of Income Tax Returns, known as ITR forms, categorized based on the nature of income and the taxpayer’s status. The most common ITR forms include:

  • ITR-1 (SAHAJ): For individuals having income from salary, house property, or other sources.
  • ITR-2: For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
  • ITR-3: For individuals and HUFs having income from a proprietary business or profession.
  • ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession.
  • ITR-5: For LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs).
  • ITR-6: For companies other than those claiming exemption under Section 11 of the Income Tax Act.
  • ITR-7: For persons including companies required to furnish a return under Sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Income Tax Act.

Ensure you choose the correct ITR form based on your income sources and taxpayer category.

Income Tax Refunds

If you have paid more tax than your actual liability, you are eligible for an income tax refund. The income tax department processes refunds after the successful filing and verification of Income Tax Returns. The refund amount is credited directly to the taxpayer’s bank account.
To ensure a smooth refund process, provide accurate bank account details and keep track of the refund status using the income tax department’s online portal. Due Date to Claim TDS Refund  without Penalty is 31st July 2024. 

Benefits of Filing Income Tax Return

Legal Requirement

Filing your income tax return ensures compliance with the tax laws and regulations of your jurisdiction. Failure to file can result in penalties and legal consequences.

Avoid Penalties

Late filing or non-filing can lead to penalties and interest charges imposed by the tax authorities. It is important to file within the stipulated deadlines to avoid unnecessary financial burdens.

Claim Refunds

If you have paid excess taxes or are eligible for deductions and exemptions, filing income tax returns allows you to claim tax refunds from the government.

Establish Financial History

Consistently filing your income tax return each year can help establish a positive financial history, which can be helpful when applying for loans, credit cards, or other financial products.

Proof of Income

Income tax returns act as official financial documents that demonstrate your income and tax liabilities. They are often required for various financial transactions, loan applications, visa processing, and more.

Tax Planning

Filing your Income tax return (ITR) can also help you plan for the future by allowing you to evaluate your current tax situation. Income Tax  Planning is important to save tax and to maximize your refunds. 

Late Income Tax Return Filing

If the taxpayer has missed the due date of filing the Income tax return, the same can still be submitted as “belated income tax return” within the last date of the assessment year. However, the losses or accumulated depreciation cannot be carried forward, and in case there is any error the belated return cannot be revised.

Penalty For Not Filing The ITR

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If you fail to file your income tax return by the due date, you may incur a penalty and interest charges. The penalty for late income tax return filing is Rs. 5,000 for returns filed after the due date but before December 31, 2023. The penalty increases to Rs. 10,000 for returns filed after December 31, 2023. However, if your total income does not exceed Rs. 5 lakh, the maximum penalty cannot exceed Rs. 1,000.

Interest is also charged on the outstanding tax liability at the rate of 1% per month or part of the month until the tax liability is paid in full.

FAQs on Income Tax Return Filing

What is Income Tax Return?

Income tax return is a document that a taxpayer files with the tax authorities, declaring his/her income, deductions, and tax liability. The tax return needs to be filed on or before the due date as prescribed by the Income Tax Department of the country. The tax authorities use the information provided in the return to assess the taxpayer’s tax liability and to determine if the taxpayer is eligible for a refund.

Who is Required to File an Income Tax Return?

Every individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), and companies are required to file an income tax return if their income exceeds the basic exemption limit. The basic exemption limit is different for different categories of taxpayers and is subject to change from year to year.

What are the Documents Required for Filing an Income Tax Return?

The following documents are required for filing an income tax return:

  1. Form 16 or Salary Certificate issued by the employer
  2. Form 26AS
    Bank statements
  3. TDS certificates
  4. Investment proof for claiming deductions
What is the Due Date for Filing an Income Tax Return?

The due date for filing an income tax return varies depending on the category of taxpayer. For individuals and HUF, the due date is generally 31st July of the assessment year. However, for businesses, the due date is different, and it is advisable to check the Income Tax Department’s website for the latest due dates.

 

What is the Penalty for Late Filing of Income Tax Return?

If a taxpayer fails to file his/her income tax return on or before the due date, he/she may have to pay a penalty. The penalty amount varies depending on the delay in filing the return and the taxpayer’s income. For individuals, the penalty can range from Rs. 1,000 to Rs. 10,000.

Can an Income Tax Return be Filed After the Due Date?

Yes, an income tax return can be filed after the due date. However, it is called a belated return, and the taxpayer may have to pay a penalty for filing it late. The penalty amount for a belated return is the same as the penalty for late filing.

What are the Consequences of Not Filing an Income Tax Return?

If a taxpayer fails to file his/her income tax return, he/she may have to face several consequences. The Income Tax Department may levy a penalty for late filing of the return, charge interest on the tax liability, and may even initiate prosecution proceedings against the taxpayer.

Can an Income Tax Return be Revised After Filing?

Yes, an income tax return can be revised after filing. If a taxpayer realizes that he/she has made an error in the original return filed, he/she can file a revised return to correct the mistake. However, the revised return needs to be filed within a specified time frame.

What is the Process of Filing an Income Tax Return?

The process of filing an income tax return is straightforward. The taxpayer needs to follow the below steps:

  1. Download the relevant income tax return form from the Income Tax Department’s website.
  2. Fill in the details in the form,
  3. Calculate the total income, deductions, and tax liability.
  4. Pay the tax liability (if any) before filing the return.
  5. Upload the return on the Income Tax Department’s website.
  6. Verify the return using Digital Signature Certificate (DSC) or Aadhaar OTP within 30 day. 
     
     
Is it necessary to file an income tax return if there is no tax liability?

Ans: No, it is not necessary to file an income tax return if there is no tax liability. However, if the taxpayer wants to claim a refund, he/she needs to file an income tax return.

Can I file my ITR after the due date?

Yes, you can file your ITR after the due date. But such an ITR will be considered as a belated return, and a late filing fee will be levied along with interest.

What is Belated Return Section?

A belated return is filed under section 139(4).

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