What is Income Tax Return (ITR)?

An Income Tax Return (ITR) is a form or document that individuals, businesses, and other entities use to report their annual income, deductions, exemptions, and tax liabilities to the tax authorities. It is a declaration of their taxable income and the taxes they owe or are eligible to receive as a refund.

The Income Tax Return serves as a means for taxpayers to provide comprehensive information about their financial transactions, sources of income, and expenses to the tax authorities. It helps determine the taxpayer's tax liability and enables the government to assess and collect taxes effectively.

Taxpayers are typically required to file their ITR annually, providing details of their income and relevant financial information for a specific period, such as a financial year (FY). It starts on 1st April and ends on 31st March of the next calendar year.

By filing their Income Tax Return, taxpayers fulfill their legal obligation to report their income and pay the applicable taxes. It is essential to file the ITR accurately and within the prescribed timelines to avoid penalties, comply with tax laws, and maintain good standing with the tax authorities. Don’t want to miss out on ITR filing deadlines? Pre-book your ITR Filing and get a flat 25% off.

Why is it Important to File Income Tax Returns on Time?

Filing income tax returns on time is a legal obligation imposed by the government. It is essential for individuals and entities to fulfill their tax obligations by accurately reporting their income, claiming deductions and exemptions, and paying the appropriate amount of tax within the prescribed timelines. Timely filing of income tax returns enables the government to assess and collect taxes efficiently, ensuring the smooth functioning of public services and welfare initiatives.

Income Tax Return Filing Due Dates for FY 2023-24 (AY 2024-25)

The last date to file ITR for Firms and HUFs for FY 2023-24 is 31st July 2024.

ITR filing last date 2024 and Audit report filing for different categories of taxpayers- FY 2023-24 (AY 2024-25)

What is the Due Date for Making Payment of Advance Tax Installments?

The due dates for the payment of advance tax are as follows -

Note:

You have to pay advance tax only if your total tax liability is Rs. 10,000 or more in a financial year.

Any tax payment made on or before 31st March of the same FY shall also be treated as advance tax.

Need help paying advance tax installments? Connect with our tax experts

What is the Due Date for Making TDS Payments?

The due date for making monthly TDS payments can be better understood in terms of Government and non-government assessees as follows:-

Note:

Tax deducted by a Government assessee without challan (i.e. treasury Challan) should be deposited on the same day of deduction. However, in the case of deduction under section 192(1A), it must be deposited on or before seven days from the end of the month in which such deduction is made, where tax is paid and accompanied by an income-tax challan.

- Tax deducted on the acquisition of immovable property u/s 194IA must be deposited within 30 days from the end of the month in which payment of consideration is made.

Note*:
Under section 192(1A), the payment has to be made within seven days (7 days) of the last day of the month in which the deduction is made or income tax is due.

What is the Due Date for Filing a TDS Return?

The due date for submission of quarterly TDS Returns for FY- 2023-24 in Form 24Q, Form 26Q, Form 27Q & Form 27EQ by Government or Non-Government deductors are:

Note:

Form 24Q is a quarterly statement for the Return of TDS details on Salary Payments.
Form 26Q is a quarterly statement for Return of TDS details on Other than Salary Payments (Domestic).
Form 27Q is also a quarterly statement for Return of TDS details on Other than Salary Payments (NRI/Foreign)(additional income like interest, dividends).
Form 27EQ is for TCS Return.

Due Dates to issue TDS certificates (Form 16)

Note:

Form 16A & Form 27D are issued within 15 days from the due date of furnishing the TDS / TCS return.
Form 16A is for TDS deducted on income other than salary
Form 27D is for Tax Collection Certificate(TCS)

What is the Interest and Penalty for Delay in Filing Returns?

Note:- There is no update on income tax return due date extension for AY 2023-24. Hurry Up and file your belated return before 31st December 2023.

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What Happens if the Deadline for Filing ITR is Missed?

Missing the deadline for filing your ITR isn't ideal, but it's not the end of the story either. The consequences depend on whether you file a belated return and when you do. Here's a breakdown:

Consequences of Missing the Deadline:

• Late Filing Penalty: You'll have to pay a late filing penalty. The amount depends on your income:
• Up to Rs. 5,000: For incomes exceeding Rs. 5 lakh.
• Rs. 1,000: For incomes below Rs. 5 lakh.
• No penalty: No penalty if your income is below the taxable limit.
• Interest on Tax Owed: If you owe any tax, you'll also have to pay interest on it from the due date until you pay it.
• Delay in Refunds: If you're due a refund, you won't receive it until you file your return.
• Filing a Belated Return:

You can still file a belated return up to December 31st of the relevant assessment year (e.g., for the financial year 2023-24, the deadline is December 31st, 2024). However, you'll still face the late filing penalty mentioned above.

Additional Consequences for Not Filing at All:

If you never file your ITR, the consequences can be much more severe:

Prosecution: The income tax department can initiate prosecution proceedings against you. This could lead to imprisonment for up to seven years and a fine.

Difficulty Processing Loans: Some banks and financial institutions may not process loan applications from people who haven't filed their ITRs.

Difficulty Claiming Tax Benefits: You may not be able to claim certain tax benefits, such as losses from investments if you don't file your ITR.

Recommendation:

It's always best to file your ITR on time to avoid any penalties and complications.

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