Important ITR Filing Updates for FY 2024-25: Income Tax Payers Should Be Aware of These 7 Key Points
The deadline for filing Income Tax Returns (ITR) for the financial year 2024-25 has been extended from July 31 to September 15. This 45-day extension aims to accommodate significant changes in the ITR forms introduced in the recent Budget 2024. While this additional time is beneficial, taxpayers must remain vigilant to avoid common mistakes that could lead to complications with the Income Tax Department.
Understanding the Importance of Accurate ITR Filing
Filing an Income Tax Return can often be a daunting task for many individuals. The process requires careful attention to detail to ensure that submissions are accurate and complete. The recent extension of the filing deadline provides taxpayers with extra time to prepare their returns, but it also highlights the importance of avoiding common pitfalls. Errors in tax returns can lead to notices from the Income Tax Department, which can be stressful and time-consuming to resolve. Therefore, it is crucial for taxpayers to familiarize themselves with the common mistakes that can occur during the filing process.
Common Mistakes to Avoid When Filing ITR
One of the most prevalent errors is selecting the wrong ITR form. Taxpayers must ensure they choose the correct form that corresponds to their income sources and tax situation. Additionally, failing to verify submitted returns can lead to significant issues. It is essential to check all details before submission to avoid complications later. Another misconception is that individuals with zero tax liability do not need to file returns. In reality, certain expenditures, such as international travel or high electricity consumption, necessitate filing, regardless of tax liability.
Moreover, neglecting to verify the Annual Information Statement (AIS) and Form 26AS can result in discrepancies. These documents provide crucial information about financial transactions and tax payments, and overlooking them can lead to errors in the return. Taxpayers should also be cautious about omitting any income sources, as this can result in severe penalties and interest charges.
Impact of Budget 2024 Changes on Tax Filing
The recent Budget 2024 has introduced several changes that taxpayers must consider when filing their returns. The revised ITR forms come with new compliance requirements, and alterations in deductions and capital gains taxation can lead to computational inaccuracies. Taxpayers should stay informed about these changes to ensure their filings are accurate. Additionally, it is important to declare exempt income in the appropriate sections of the return, even though it does not contribute to taxable income.
Another common mistake occurs when individuals switch jobs within a fiscal year. They may mistakenly claim basic exemptions and deductions from both employers, leading to excessive tax benefits. This can complicate the filing process and result in incorrect tax calculations.
Ensuring Compliance with HRA Declarations
Errors in declaring House Rent Allowance (HRA) can also lead to significant penalties. Taxpayers must ensure that their claims for HRA exemptions are valid and supported by necessary documentation, such as rent agreements and receipts. Under the old tax regime, salaried employees can claim HRA as part of their salary, but they must provide proof of actual residence in rented accommodations. Failing to do so can result in fines that may reach up to 200% of the incorrectly reported amount.
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