While receiving the ‘salary credited’ notification is eagerly anticipated by many, it also initiates the responsibility of tax filing. Navigating the intricacies of the Income Tax Act can seem daunting, raising the question of whether filing an Income Tax Return (ITR) is mandatory for everyone. This article explores the essential conditions for  ITR  filing, exemptions, deadlines, and the implications of non-compliance.

Who should file Income Tax Returns for FY 2023-24?

Under the old tax regime, individuals below 60 years must file an Income Tax Return (ITR) if their income exceeds Rs. 2.5 lakhs, while those aged 60 and above must file if their income exceeds Rs. 3 lakhs.

In the new regime, the basic exemption limit for individuals below 60 years is Rs. 3 lakhs. Note that for FY 2023-24, the exemption limit was initially Rs. 2.5 lakhs but was increased to Rs. 3 lakhs in the 2023 budget, applicable for ITR filing in that fiscal year.

Below are the tax slab rates for FY 2023-24 applicable under both regimes:

Income Tax Returns Tax Slab Rates for Individuals Below 60 Years of Age for FY 2023-24

Annual Taxable Income	New Tax Regime	Old Tax Regime
Up to Rs. 2.5 lakh	Exempt	Exempt
Rs. 2.5 lakh to Rs. 3 lakh	Exempt	5%
Rs. 3 lakh to Rs. 5 lakh	5%	5%
Rs. 5 lakh to Rs. 6 lakh	5%	20%
Rs. 6 lakh to Rs. 9 lakh	10%	20%
Rs. 9 lakh to Rs. 10 lakh	15%	20%
Rs. 10 lakh to Rs. 12 lakh	15%	30%
Rs. 12 lakh to Rs. 15 lakh	20%	30%
Above Rs. 15 lakh	30%	30%

 

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Tax Slab Rates for Senior Citizens (60-80 years of age) for FY 2023-24

Annual Taxable Income	New Tax Regime	Old Tax Regime
Up to Rs. 3 lakh	Exempt	Exempt
Rs. 3 lakh to Rs. 5 lakh	5%	5%
Rs. 5 lakh to Rs. 6 lakh	5%	20%
Rs. 6 lakh to Rs. 9 lakh	10%	20%
Rs. 9 lakh to Rs. 10 lakh	15%	20%
Rs. 10 lakh to Rs. 12 lakh	15%	30%
Rs. 12 lakh to Rs. 15 lakh	20%	30%
Above Rs. 15 lakh	30%	30%

 

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Tax Slab Rates for Super Senior Citizens (Aged > 80 years) for FY 2023-24

Annual Taxable Income	New Tax Regime	Old Tax Regime
Up to Rs. 3 lakh	Exempt	Exempt
Rs. 3 lakh to Rs. 5 lakh	5%	Exempt
Rs. 5 lakh to Rs. 6 lakh	5%	20%
Rs. 6 lakh to Rs. 9 lakh	10%	20%
Rs. 9 lakh to Rs. 10 lakh	15%	20%
Rs. 10 lakh to Rs. 12 lakh	15%	30%
Rs. 12 lakh to Rs. 15 lakh	20%	30%
Above Rs. 15 lakh	30%	30%

 

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Tax Slab Rates for Super Senior Citizens (Aged > 80 years) for FY 2023-24

Annual Taxable Income	New Tax Regime	Old Tax Regime
Up to Rs. 3 lakh	Exempt	Exempt
Rs. 3 lakh to Rs. 5 lakh	5%	Exempt
Rs. 5 lakh to Rs. 6 lakh	5%	20%
Rs. 6 lakh to Rs. 9 lakh	10%	20%
Rs. 9 lakh to Rs. 10 lakh	15%	20%
Rs. 10 lakh to Rs. 12 lakh	15%	30%
Rs. 12 lakh to Rs. 15 lakh	20%	30%
Above Rs. 15 lakh	30%	30%

When Should You File an Income Tax Return (ITR) Despite Having Income Below the Basic Exemption Limit?

As per the Income Tax Act of India, individuals typically need to file an ITR only if their annual income exceeds the basic exemption limit. However, there are specific conditions that require filing an ITR even if your income is below this limit. Here are the instances:

• Bank Deposits exceeding Rs. 50 lakhs: If your savings bank deposits total more than Rs. 50 lakhs during the financial year.
• Current Account Deposits of Rs. 1 Crore or more: If you deposit Rs. 1 crore or above in one or more current accounts in a year.
• Annual Sales Turnover above Rs. 60 lakhs: If your business or professional sales turnover exceeds Rs. 60 lakhs annually.
• Professional income exceeding Rs. 10 lakh: If your earnings from professional services surpass Rs. 10 lakhs in a fiscal year.
• Electricity Bill Exceeding Rs. 1 Lakh: If your electricity bill payments exceed Rs. 1 lakh within the financial year.
• TDS/TCS exceeding Rs. 25,000: If the total TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) deducted from your income is more than Rs. 25,000 annually (Rs. 50,000 for senior citizens).
• Income from foreign assets: If you own assets abroad or derive benefits from foreign assets.
• Expenses on foreign travel: If you spend Rs. 2 lakh or more on overseas travel for yourself or someone else in a fiscal year.

These situations necessitate the filing of an ITR, irrespective of whether your taxable income falls below the basic exemption limit.

Key Benefits of Filing Income Tax Returns (ITR)

Filing your Income Tax Return (ITR) offers several advantages that go beyond mere compliance with tax laws:

1. Easy Loan Approval: Banks often require your ITR as proof of income when processing loan applications, making it easier to secure loans.
2. Claiming Tax Refund: If TDS (Tax Deducted at Source) has been deducted from your income, you can claim a tax refund if it exceeds your actual tax liability or if your income is below the exemption limit.
3. Proof of Income and Address: Your ITR serves as valid proof of income and investments for various financial transactions, including applications with banks and financial institutions.
4. Quick Visa Processing: Many embassies require previous years' ITRs when applying for visas, expediting the visa processing time.
5. Carry Forward of Losses: Under the Income Tax Act, you can carry forward losses from previous years and offset them against future income, but this benefit is only applicable if you file your ITR within the stipulated timeline.
6. Facilitates Buying Term Insurance: Insurance providers often request ITRs as proof of income, which helps determine the coverage amount for term insurance policies.
7. Claim Refund of Excess Tax Payments: If TDS has been deducted from sources like fixed deposits, salary, or interest income, and your total income is below the taxable threshold, you can claim a refund of the excess tax paid through your ITR.

Filing your ITR not only ensures compliance with tax regulations but also unlocks these practical benefits for your financial and personal endeavors.

Who Qualifies for Exemption from ITR Filing in India?

In Budget 2021, Section 194P introduced a significant exemption for senior citizens aged 75 years and above from filing income tax returns, under specific conditions:

• The individual must be aged 75 years or more.
• They must be classified as a 'Resident' in India in the previous years.
• Their income should consist solely of interest and pension. The interest income must be earned from the same bank where they receive their pension.
• The senior citizen needs to submit a declaration with relevant details to the specified bank.
• The bank must be designated by the Central Bank. These banks will deduct TDS (Tax Deducted at Source) after considering applicable deductions and rebates. Following TDS deduction, senior citizens are not required to file income tax returns.

This provision aims to simplify tax compliance for elderly citizens, ensuring they benefit from reduced administrative burdens while fulfilling their tax obligations effectively.

which itr form to file for salaried person

If you are a salaried individual with income from salaries, one house property, and other sources like interest income, you typically need to file 

ITR-1 (Sahaj) form. This form is designed for individuals who have income from salaries, pension, one house property, and income from other sources (excluding income from lottery winnings and horse racing). It's important to note that if you have income from more than one house property, capital gains, business or professional income, or agricultural income exceeding Rs. 5,000, you would need to file ITR-2 instead. Always consult with a tax professional to ensure you file the correct form according to your specific income sources and financial situation.

itr filing last date for ay 2023-24 : Mark Your Calendar

The deadline for filing Income Tax Returns (ITR) for the fiscal year 2023-24 is approaching. Here are the important dates you should remember:

- ITR filing for individuals and entities not liable for tax audit: Deadline is 31st July 2024.

- ITR filing for taxpayers under tax audit (excluding transfer pricing cases):Due by 31st October 2024.

- ITR filing for taxpayers under transfer pricing:Deadline is 30th November 2024.

- Revised return/belated return for FY 2023-24: Must be filed by 31st December 2024.

Remember, missing the initial deadline doesn't mean you can't file. You can still submit a belated return before 31st December 2024. Act now to ensure a hassle-free ITR filing experience for FY 2023-24. For accurate and timely filing, consider CA-assisted ITR-filing services. Consult with a CA today!

what if i miss the deadline to file my taxes

Missing the deadline to file your Income Tax Return (ITR) can lead to several repercussions. Here’s what you need to be aware of:

-Late Filing Fees: Late filing fees under Section 234F may apply:

  - Up to Rs 5,000 if your income exceeds Rs 5 lakhs.

  - Up to Rs 1,000 if your income is below Rs 5 lakhs.

-Interest Payment: According to Section 234A, you are liable to pay interest at 1% per month or part thereof, starting from the day after the due date (31st July).

- Loss Carry Forward: Failure to file ITR on time can disqualify you from carrying forward losses to future years, impacting your tax benefits.

-Legal Consequences: Non-filing of ITR can be construed as tax evasion, potentially leading to penalties and legal repercussions, including imprisonment for a period ranging from 6 months to 7 years.

If you find tax filing challenging, TaxRing  offers expert CA-assisted ITR filing services. Our online CA services ensure accurate filing, maximize your tax refunds, and guide you through deductions and exemptions. Don’t delay—book an eCA now to stay compliant and minimize financial risks.

Penalty for Late Filing for ay 2023-2024 of Income Tax Return ?

Failing to submit your Income Tax Return (ITR) on time can have significant consequences both financially and legally. Here’s what you need to know:

1.Late Filing Fees: According to Section 234F of the Income Tax Act, late filing can result in penalties:

   - If you file your return after the due date but before 31st December of the assessment year, you may incur a late fee of up to Rs. 5,000.

   - For individuals with total income up to Rs. 5 lakh, the late fee is capped at Rs. 1,000.

2. Interest Charges:Section 234A imposes an interest payment of 1% per month or part thereof on any tax payable, starting from the day after the due date (31st July). This adds up quickly and increases your tax liability.

3.Impact on Loss Carry Forward:Delayed filing can disqualify you from carrying forward capital losses or other losses to future assessment years. This can reduce your ability to offset future income and potentially increase your tax liability in subsequent years.

4. Legal Consequences:Non-filing or late filing of ITR can be viewed as tax evasion by tax authorities. This may lead to penalties and legal actions, including fines and prosecution. It’s crucial to comply with tax regulations to avoid these severe repercussions.

To mitigate these risks, ensure you file your ITR on time. Consider utilizing the services of a qualified tax professional or reliable online tax filing platforms to ensure accurate and timely submission. Taking proactive steps now not only helps in avoiding financial penalties but also ensures compliance with tax laws, safeguarding your financial well-being in the long term.

Frequently Asked Question

1. Q- What is the Basic Exemption Limit?

   The basic exemption limit is the threshold of annual income below which no income tax is applicable. It defines the maximum amount of income exempted from taxation.

2. Q- What is exempted income?

   Exempt income refers to income that is not subject to taxation under the current tax laws and regulations of a country.

3.Q- Can I file ITR for FY 2023-24 now?

   Yes, you can file your Income Tax Return (ITR) for FY 2023-24 now as the income tax department has opened online filing. The deadline for filing ITR for FY 2023-24 is 31st July 2024.

4. Q- Is it mandatory to file ITR for an annual income of Rs. 4.25 lakhs?

   Yes, it is mandatory to file ITR if your annual income exceeds Rs. 2.5 lakhs, regardless of whether there is a tax liability. For an income of Rs. 4.25 lakhs, filing ITR is necessary to report income to the tax authorities.

5.Q- What if my taxable income is more than the basic exemption limit?

   If your taxable income exceeds the basic exemption limit, you are required to file an income tax return. This ensures compliance with tax laws and may involve paying taxes on the income exceeding the exemption limit.

6. Q- Who should file ITR 2?

   ITR-2 is essential for individuals with income from multiple sources such as salaries, pensions, multiple house properties, capital gains, lottery winnings, and agricultural income over Rs. 5,000. It applies to residents, non-residents, and residents not ordinarily resident, excluding those with business or professional income exceeding Rs. 50 lakh.

7.Q- Can I file ITR for the last 2 years now?

   Yes, you can file ITR for the last 2 years if you missed filing for any previous assessment years. It's advisable to file these returns at the earliest to avoid penalties and to stay compliant with tax regulations.

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8 Q.What documents are needed for filing income tax returns as a salaried person?

As a salaried person filing your income tax return, you typically need documents like Form 16, salary slips, bank statements, investment proofs, house rent receipts (if applicable), property documents (if owning property), and Form 26AS for TDS details. These documents help ensure accurate reporting of your income and deductions to comply with tax regulations.

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