Income Tax Return 2024

Filing your income tax return (ITR) is a crucial annual task for every taxpayer. As the financial year ends, understanding the nuances of the ITR process for 2024 can help you file your returns accurately and timely, ensuring compliance with the tax laws and availing the benefits offered by the government.

Introduction

The Income Tax Return is a form through which individuals and businesses report their income, expenses, and tax payments to the Income Tax Department. Filing ITR is not only a legal obligation but also a way to claim refunds, carry forward losses, and avail tax benefits. This comprehensive guide covers the steps, requirements, and important considerations for filing your income tax return for the assessment year 2024-25.

1. Legal Compliance: Mandatory for individuals and entities earning above the basic exemption limit.
2. Claim Refunds: Allows you to claim refunds for excess tax paid or deducted.
3. Carry Forward Losses: Helps in carrying forward losses to offset future income.
4. Proof of Income: Acts as proof of income for various financial transactions.
5. Avoid Penalties: Ensures avoidance of penalties for non-compliance.

1. 31st July 2024: Last date to file ITR for individuals (non-audit cases).
2. 30th September 2024: Last date to file ITR for businesses requiring audit.
3. 31st December 2024: Last date for filing revised or belated returns for the financial year 2023-24.

• PAN Card: Permanent Account Number.
• Aadhaar Card: Mandatory for linking with PAN.
• Bank Statements: Detailed statement of your bank accounts.
• Form 16: Issued by employers for salaried individuals.
• Form 16A/16B/16C: For TDS on other incomes.
• Investment Proofs: Proof of investments for claiming deductions.
• Housing Loan Interest Certificate: For home loan interest deduction.
• Capital Gains Statement: For income from capital gains.
• Other Income Details: Details of any other income, such as rental income, interest, etc.

• ITR-1 (SAHAJ): For individuals with income up to ₹50 lakh from salary, one house property, other sources (interest, etc.), and agricultural income up to ₹5,000.
• ITR-2: For individuals and HUFs not having income from business or profession.
• ITR-3: For individuals and HUFs having income from business or profession.
• ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) being a resident having total income up to ₹50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA, or 44AE.
• ITR-5: For persons other than individual, HUF, company, and person filing ITR-7.
• ITR-6: For companies other than companies claiming exemption under section 11.
• ITR-7: For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).

• Income from Salary: Gross salary minus exempt allowances.
• Income from House Property: Rental income minus standard deductions.
• Income from Business/Profession: Profits and gains from business or profession.
• Capital Gains: Profits from the sale of capital assets.
• Other Sources: Interest income, dividend income, etc.

• Section 80C: Deductions up to ₹1.5 lakh on investments in PPF, EPF, life insurance, ELSS, NSC, etc.
• Section 80D: Deductions on health insurance premiums.
• Section 80E: Interest on education loan.
• Section 80G: Donations to charitable institutions.
• Section 24(b): Interest on housing loan.

• Use the applicable tax slabs to compute your tax liability after considering deductions and exemptions.
• Verify the tax deducted at source (TDS) and advance tax payments.

• Visit the Income Tax e-filing Portal: incometaxindiaefiling.gov.in
• Register/Login: If you are a new user, register using your PAN. Existing users can log in using their credentials.
• Fill the ITR Form: Download the relevant ITR form, fill it out offline, and upload it, or use the online ITR form.
• Validate the Form: Ensure all the details are correctly filled and validate the form.
• Generate XML File: If filling offline, generate an XML file and upload it.
• Submit: Submit the ITR form online.
• E-Verify: Verify your return using Aadhaar OTP, EVC, or by sending a signed ITR-V to CPC Bangalore.

After successful submission, save the acknowledgment for future reference.

1. Incorrect Personal Information: Ensure that your name, PAN, and address are correctly entered.
2. Choosing the Wrong ITR Form: Select the correct ITR form based on your income sources.
3. Not Reporting All Income: Report all sources of income, including interest and rental income.
4. Miscalculation of Tax: Double-check the tax calculations and deductions claimed.
5. Not Verifying the Return: Complete the e-verification process to avoid invalid returns.

1. Easy Loan Approvals: Acts as proof of income, aiding in quick loan approvals.
2. Claiming Tax Refunds: Ensures you can claim refunds for excess tax paid.
3. Income Proof: Serves as proof of income for various financial transactions.
4. Carrying Forward Losses: Allows you to carry forward business losses to offset future income.
5. Legal Compliance: Fulfills your legal obligation, avoiding penalties and fines.

1. Who is required to file an income tax return?

Any individual or entity whose income exceeds the basic exemption limit is required to file an income tax return. Additionally, those with foreign income or assets, or those seeking to carry forward losses, must file returns.

2. What is the basic exemption limit for the financial year 2023-24?

The basic exemption limit varies by age:

• Below 60 years: ₹2.5 lakh
• Between 60 and 80 years (Senior Citizens): ₹3 lakh
• Above 80 years (Super Senior Citizens): ₹5 lakh

3. Can I file my ITR after the due date?

Yes, you can file a belated return by 31st December 2024, but you may have to pay a late filing fee and interest on the tax due.

4. What is e-verification of ITR?

E-verification is the process of validating your ITR electronically using methods like Aadhaar OTP, EVC, or net banking. This step is necessary to complete the filing process.

5. How can I claim a tax refund?

If the tax paid exceeds your tax liability, you can claim a refund by filing your ITR. The refund will be processed after the return is verified and processed by the Income Tax Department.

6. What should I do if I made a mistake in my ITR?

You can rectify mistakes by filing a revised return by 31st December 2024 or before the completion of the assessment, whichever is earlier.

7. Is it mandatory to link Aadhaar with PAN for filing ITR?

Yes, linking Aadhaar with PAN is mandatory for filing ITR as per the latest government regulations.

8. What documents do I need to keep after filing my ITR?

Keep the acknowledgment receipt, Form 16, bank statements, investment proofs, and any other relevant documents for at least six years for future reference and verification.

9. Can I file ITR without Form 16?

Yes, you can file ITR without Form 16 by using your salary slips, bank statements, and other relevant documents to calculate your income and tax liability.

10. What happens if I do not file my ITR?

Non-filing of ITR can lead to penalties, interest on tax dues, and legal consequences. Additionally, you may miss out on benefits like carrying forward losses and claiming refunds.

Filing your income tax return for the assessment year 2024-25 is a crucial process that requires careful planning and attention to detail. By understanding the requirements, gathering necessary documents, and following the step-by-step process outlined in this guide, you can ensure a smooth and hassle-free ITR filing experience. Remember to file your returns timely to avoid penalties and take advantage of the various benefits offered by the tax system.