This year's deadline for filing income tax returns (ITRs) is July 31. people who miss the deadline need to be aware that there might be dire repercussions. people who miss the July 31 deadline will be able to file a late return by december 31, 2024, but they will automatically be assigned to the new tax system if they don't submit their Income Tax Return (ITR) by then.
 
This implies that since you will be automatically enrolled in the new tax regime, you will not be able to choose the old system for the relevant financial year. There are two tax regimes in effect at the moment: the previous one and the new one that was implemented in 2020 and has updated tax slabs and reduced rates.
 
You may choose to file a late return if your ITR is not filed by July 31. By Section 234F of the Income Tax Act, late filing penalties of ₹5,000 may be assessed. Should your earnings not surpass ₹5 lakh, the late reporting costs amount to ₹1,000. In addition, interest on the unpaid tax amount from the due date will be assessed at a rate of 1% every month or portion of the month; however, the penalty assessed cannot exceed the amount of unpaid taxes.
 
Individuals who opt to submit their income tax returns after the deadline will forfeit the chance to carry forward any potential capital losses they may have incurred. As a result, these taxpayers will not be able to use their losses to offset any future profits, which would increase their tax obligation going forward.
 
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

ITR Filing

SIBY JEYYA

29/07/2024 09:37 AM