Last day for filing income tax returns... will the deadline be extended?
Income Tax Return (ITR) filing season is underway in India. It is reported that more than 4 crore ITRs have been filed till 22 July 2024, which expires at the end of July. This is less than 45% of the total income taxpayers in the country as estimated for 2024-25. However, this is 8% higher than the returns filed during the same period last year, the Income Tax Department said.
The Information technology Department has said that it has crossed some important milestones. On July 16, 2024, daily filings crossed 15 lakhs. Almost 50% of taxpayers have to file their returns by July 31. This number is expected to increase in the next few days. If the ITR is filed after the end of the month, a maximum penalty of Rs.5,000 will be charged for the delay. This billed return should be filed by december 31, 2024.
Major Changes in New Tax System: The Union Budget on July 23, 2024, introduced several relaxations in the new tax system, which will cover about 66% of taxpayers. The standard deduction limit has been increased from Rs.50,000 to Rs.75,000. New tax slabs have been introduced. No tax up to Rs.3 lakhs.
5% tax between Rs 3 lakh to Rs 7 lakh and 10% tax for income between Rs 7 lakh and Rs 10 lakh. 15% for income between Rs.10 lakh to Rs.12 lakh, 20% for income between Rs.12 lakh to Rs.15 lakh and 30% for income above Rs.15 lakh.
When will the new rules come into effect? However, it should be noted that the Central Budget announcements are not applicable to income tax returns being filed now. Because the Finance Bill has to be passed in the house first. These changes will come into effect from october 1, 2024. Applicable to filings for the next assessment year (2025-26).
Increase in tax collection: The Income Tax Department has already reported a significant growth in tax collection in the first quarter of FY2025. The total direct tax collection has registered a growth of 22.19% so far. In the last financial year, direct tax collections grew by 18.48% to Rs 23.37 lakh crore for the full year. Advanced tax collection for FY25 was Rs.1,48,823 crore. A growth of 27.34% was reported during the same period last year.
Refunds of Rs.53,322 crore have been issued so far this financial year. The Income Tax Department has clarified that a total refund of Rs 3.79 lakh crore has been issued in the last financial year.
Will ITR be extended? There are reports that the last date for filing ID returns has been extended to august 31. However, no official notification has been released by the Income Tax Department. Many taxpayers are facing hurdles in the portal as they are facing discrepancies in their Annual Income Statement (AIS), and Tax Information Statement (TIS), seeking extension of deadline. However, tax experts also opine that more returns have been filed compared to the same period last year, so the date may not be extended.
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