Winning Bizness Desk
Mumbai. The date for filing income tax return by July 31 for the financial year 2023-24 i.e. assessment year 2024-25 is approaching very fast. In such a situation, if you have not filed ITR till now, then do it soon. Tax experts say that filing ITR on time not only saves from penalty, but it also has several benefits. Remember that if you do not file ITR within the stipulated date, you may have to pay a penalty. If the annual income of an individual taxpayer is more than Rs 5 lakh, then he will have to pay a late fee of Rs 5,000. If the annual income of the taxpayer is less than Rs 5 lakh, then he will have to pay Rs 1,000 as late fee. This penalty can be avoided by filing ITR on time.
Filing tax on time is wisdom
Nowadays, the income tax department receives information about your income from many sources, if you do not file ITR on time, the income tax department can send you a notice based on that information. To avoid the hassles of notices, it is beneficial to submit ITR on time. According to the income tax rules, if a taxpayer has not paid tax or has paid less than 90% of the total tax due on him, then he will have to pay 1% interest as penalty every month under section 234B. In this way, by filing returns on time, you can save interest on income tax. According to the income tax rules, by filing ITR by the due date, you can carry forward your loss to the next financial years. That is, you can reduce the tax liability on your income in the next financial years. For example, if there is a loss on the sale of shares, then it can be carried forward for 8 years, however, if the return is not filed on time, then the loss cannot be carried forward and this benefit will not be available.
Choose the right option
Taxpayers get two options to file income tax returns. If you choose the first or old tax regime, only your income up to Rs 2.5 lakh will be tax free. However, under section 87A of the Income Tax Act, you can save tax on income up to Rs 5 lakh. On the other hand, if you choose the new tax regime, you will not have to pay tax on income up to Rs 3 lakh. In this also, under section 87A of the Income Tax Act, salaried persons can get tax exemption on income up to Rs 7.5 lakh and other people can get tax exemption on income up to Rs 7 lakh
