ITR filing deadline ends today, hurry taxpayers if you have still not done the same — All you need to know

Income Tax Returns (ITR) Filing: The annual tax season is nearing its end today, as the deadline for filing income tax returns (ITR) looms today, on July 31. Taxpayers who have not yet filed your returns for FY23 (AY24), have to do so by today, with some exceptions.

Here are all the details you need to know to file your ITR — including the deadline, penalty for missing the deadline, documents required, who had more time, and possible extension of deadline. Take a look.

ITR Deadline & Possible Extension

• The last date for ITR filing for financial year 2023-24 (Assessment Year 2024-25) is July 31, 2024. That is today.
• Those taxpayers that miss the July 31 deadline can file a delayed return by December 31, 2024, for FY23-24 / AY24-25.
• The All-India Federation of Tax Practitioners (AIFTP) formally requested the CBDT formally for extension of the ITR deadline till August 31, PTI reported, so you may keep your eyes out for an update on that.

Penalty for Missed Deadline

• Taxpayers are allowed to file delayed ITR till the year-end, but will be liable to pay penalties ranging between ₹1,000 and ₹10,000 depending on the duration of delay and taxable income.
• Further, another setback of delayed ITR filing is that such process may cause you to lose out on some tax deductions and increase your tax liability. It may also increase scrutiny from the I-T Department.

Documents Needed File ITR

• Taxpayers must have the following documents ready for filing their ITR: Aadhaar Card, Form 16 (from current employer and former employer if you changed jobs mid-year), PAN Card (PAN-Aadhaar must be linked), investment proofs (including bank deposits, PPF deposits, etc.), home loan interest certificate, insurance premium payment receipts, and other proof of investments for deductions.

Who Must File ITR by Today?

• Taxpayers whose aggregate income / salary before deduction exceeds the basic exemption limit.
• Indian residents income tax purposes who own any asset outside India in your name as a beneficial owner or have an interest in any asset outside India.
• Those who are an authorised signatory for any account maintained outside India, immovable or movable.
• You are required to file ITR, irrespective of your income level, if you have invested in shares, bonds, or mutual fund schemes of foreign companies or have Employee Stock Options (ESOPS).
• You have to file an ITR if you have paid electricity charges of more than ₹1 lakh during the last year, even if the electricity connection is not in your name.
• You must file your ITR if you have spent over ₹2 lakhs on foreign travel — yours or any other person, as long as you have paid for the trip.
• You are requried to file ITR if bank deposits in your name exceed ₹50 lakh combined in one or more savings accounts, or exceeds ₹1 crore in one or more current accounts.
• You are required to file ITR, irrespective of your income level, if the value of all your sales from business exceeds ₹60 lakh.

Who can file ITR after Deadline?

Businesses and individual taxpayers whose account require auditing have a deadline till October 31, 2024 to file their ITR so that they can finish all processes. The I-T Department grants these individuals an extra three months to complete their audit with a recognized chartered accountant (CA) before filing their ITR. There are however, complex exceptions to this, so please check the ITR website or with your CA to check eligibility.

These include:

• Businesses involved in international transactions typically need extensive analysis and documentation for transfer pricing. To accommodate this, they are given an extended deadline of November 30 to file their ITRs.
• Businesses engaged in specified domestic transactions may require detailed reporting and compliance procedures. Consequently, these taxpayers might also qualify for an extended filing deadline.