The last date to file the income tax return (ITR) for Non-Audit Cases is 31st July 2024 and for audit cases, the due date is 31st October 2024 for FY 2023-24 (A.Y. 2024-25). It is necessary to ensure that the details furnished in the form are all correct. It happens that many times the taxpayers make some mistakes and due to this their tax filing gets affected and the chances to get notices from the income tax department also increase. It is also mandatory to mention the 28-digit Aadhar enrollment ID or 12-digit Aadhaar number in the return form.
Penalty Provisions
It is mandatory to file an income tax return form before the due date specified by the income tax department i.e. 31st July 2024 for non-audit cases and 31st October 2024 for audit cases, else the taxpayers will have to pay a penalty along with form submission.
Here are the penalty provisions:
The last date to file all the Belated and Revised Returns is 31st December 2024 and after 31st December you can’t file your Return except the Updated Return.
- If the income is less than Rs. 5 lakh, then the taxpayer has to pay Rs. 1000 as a penalty.
- If the income is more than Rs. 5 lakh, then the taxpayer has to pay Rs. 5000 as a penalty.
Important: Penalties for Late Income Tax Return Filing in India
List of Penalties for Default in Payment of Taxes or Disclosing the Information
- Default in making payment of taxes:- This amount of penalty is decided by the government however, the amount does not exceed the amount of tax in arrears.
- Underreporting/ Misreporting of Income:- If the assessee has not filed his return of income and his income exceeds basic limits set by the government or if the return is filed and the income assessed is greater than the income reported then the penalty would be 50% of tax payable on such under-reported income. 200% of tax payable if under-reporting is from misreporting of income.
- Not maintaining Books of Accounts: The penalty will be Rs 25,000 However, if the assessee has entered into an international financial transaction then the penalty will be 2% of such transaction amount.
- False/omitted entries:- Penalty would be equal to the sum of such false/ omitted entries.
- Penalty on undisclosed Income:-
| S.No. | Conditions | Penalty | Conditions Where Penalty Not Charged |
|---|---|---|---|
| 1. | Income determines includes undisclosed Income | 10% of such undisclosed income | The income included in the ITR and tax is paid before filing of return |
| 2. | Search is initiated on/after 01/07/2012 but before 15/12/2016 | 1. If undisclosed income is admitted during the search – 10% as a penalty 2. If undisclosed income is not admitted during the search but disclosed in the return of income and taxes is paid – 20% 3. other cases – 60% | |
| 3. | Search is initiated after 15/12/2016 | 1. If undisclosed income is admitted during the search – 30% as a penalty 2. In other cases – 60% |
Be Cautious While Filing Income Tax Return
Many taxpayers invest in recurring deposits, fixed deposits, bonds, etc. in the name of the minor child. They also get interested in such sorts of investments. Taxpayers think that the investment is in the name of the minor and so it is not required to mention such investments. While it is mandatory to provide details regarding such investment in the name of the minor child under income tax laws.
To file income tax returns correctly, Gen IT serves as the purposeful source. The software helps in fulfilling requirements such as Self Assessment Tax, Advance Tax, Income Tax computation, and calculation of interest under sections 234A, 234B, and 234C. It is a useful software “For those who can’t afford to make errors”. It is a perfect tool to prepare returns and directly do e-filing to upload them correctly. GenIT is the subsidiary of the famous Genius software of the taxation industry.
Cancer-Related Medicines
If your hard-earned money is going into the treatment of serious diseases like Aids, Kidney, and Cancer, then the taxpayers will get relief and tax exemption on the spending of such diseases.
Detailing On Income
When taxpayers file ITR in a hurry sometimes they forget to mention the things which are exempted from income tax criteria. This income consists of interest earned on the provident funds, long-term investments, etc. The income tax department asks for details regarding such incomes.
If the taxpayer is 40% differently abled and is certified by the medical authority, then he is eligible to claim up to Rs. 75,000 under section 80U. However, Section 80U also defines the person suffering from severe disability i.e. suffering 80% disability (either from one or multiple ailments) and will be eligible to claim Rs 1, 25,000 under Section 80U.
Many taxpayers are not aware of how to save on insurance premiums. The saving on insurance premiums comes under section 80D. Taxpayers sometimes forget to claim tax-saving deductions. Under section 80TTA, they forget to claim interest on saving bank accounts but in Genius software if you just Put Saving Bank Interest in Other Income you will get a deduction under section 80TTA and under section 80C they miss claiming over tuition fees etc. and under section 80C, they miss claiming over tuition fee etc.
Check 26 AS, AIS, TIS
It is advisable to avoid mistakes while filing Form 26 AS. These mistakes further increase the extra liability to serving taxpayers. Before filing the income tax return, it is necessary to check the 26AS form, AIS and TIS. It will help to sort out the problems in the coming times. In Gen I-T Return Filing software you can directly import 26AS, AIS and TIS which helps to avoid mistakes in filing the TDS/TCS/ Advance Tax details/Income Details.
Claim Processing Fees Under Section 24
Many people are not aware that the processing fee for reimbursing home loans is also eligible for claim under Section 24. Under section 24 you can eligible to claim many more deductions such as pre-construction interest, Home loan Interest etc.
Interest In Completing 3 Months
The taxpayer gets Rs. 10,000 relief on interest that was credited by the bank in the taxpayer’s savings bank account every three months period under section 80TTA.
