ITR filing 2024: ITR form, Documentation & Deadlines

Tue, 20 Aug 2024

4 mins

Filing ITR can be a daunting task, but by carefully collecting and examining the necessary documents, the process can become much more manageable and less overwhelming.
 

• New vs. old tax regime:

  Evaluate and choose between the new and old tax regimes by considering available deductions and tax benefits. To make an informed decision, use online tax calculators to compare the two options and determine which one minimizes your tax liability most effectively. This approach will ensure you take full advantage of any applicable deductions and benefits, optimizing your tax strategy for the best financial outcome.

• Which ITR form to choose?

  • ITR-1: For individuals with income from salary, one house property, and other sources.
  
  
  • ITR-2: For individuals with gross income greater than Rs 50 lakh income or have invested in unlisted equity, or have booked capital gains in the year
  
  
  • ITR-3: For individuals and HUFs with income from business or profession.
  
  
  • ITR-4: For presumptive income from business or profession.

• How to file income tax return?

  Income Tax filing can be completed from both online and offline channels. Here are the ways to file your ITR. Steps to file ITR online: 
  
  

  • Visit the official income tax e-filing website.
  
  
  • Log in with your PAN number and password. If you don't have an account, create one using accurate information.
  
  
  • Navigate to the 'e-file' tab and select 'File Income Tax Return.'

• Documents Required to File ITR

  Here are the crucial documents you should have on hand when filing your ITR:
  
  Form-16
  Form-16 is a TDS certificate issued by your employer when TDS is deducted from your salary. It has two parts: Part A and Part B. Part A contains details of the employer and employee, including their names, addresses, Permanent Account Numbers (PAN), and TDS details. Part B provides information on salary paid, exemptions allowed, deductions claimed, and tax payable on the employee's income.
  
  Bank/Post Office Interest Certificates
  According to the Income Tax Act, interest earned from post office savings accounts, savings bank accounts, recurring deposits, and fixed deposits is taxable. You need to provide a detailed breakdown of the interest received from these different sources.
  
  Form-16A and Other TDS Certificates
  Salaried individuals must collect other TDS certificates if applicable. Banks are required to deduct TDS if your total fixed deposit interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens). Mutual fund houses must deduct TDS on dividend payments exceeding Rs. 5,000 in a financial year. Collect Form-16A in both instances.
  
  Annual Information Statement (AIS)
  Introduced by the Income Tax Department in 2021, the Annual Information Statement (AIS) is a comprehensive document that provides details of all your financial transactions in a financial year, making it more detailed compared to Form 26AS.
  
  Form 26AS
  Form 26AS acts as a tax passbook, detailing the taxes deposited and deducted against your PAN. You can download it from the new income tax portal.
  
  Proof of Investment and Expenditure
  Keep documents such as deposit certificates, demat account statements, and investment receipts as proofs of investment and expenditure.
  
  Capital Gains Statement
  If you have investments in shares, mutual funds, debentures, or property and your realized gains exceed Rs. 1 lakh in a financial year, it is taxable under Long Term Capital Gains. Therefore, it is important to prepare the necessary documents to report your capital gains income.
  
  Details of Foreign Assets
  You must report all assets you hold in any foreign country, including bank accounts and property, in your Income Tax Return (ITR).
  
  Aadhaar Number
  As per Section 139AA of the Income-tax Act, 1961, mentioning your Aadhaar number in your ITR is mandatory.
  
  Bank Account Details
  You must provide details of all your bank accounts, including account numbers, bank names, account types, and IFSC codes. This information is required even if you closed the account during the financial year.
   

• What is the due date for Income tax return?

  Due date for various category of tax payers is as follows:

  • Individual / HUF/ AOP/ BOI  (where audits are not required) - 31st July 2024.
  
  
  • Businesses requiring transfer pricing reports - 30th November 2024
  
  
  • Revised return - 31 December 2024
  
  
  • Belated return  - 31 December 2024

• Penalty for Late Filing of ITR

  Failing to pay your income tax within the due date will impose an income tax penalty against you. Other than penalties, the income tax department can take legal action against you if you continuously miss the deadlines. So be responsible in terms of income tax filing. These are the due dates and penalty amount for missing the deadlines:
   

  • Penalty for Income below Rs. 5 lakh
  • Before 31 July - Nil
  • From 1 September to 31 December - Rs. 1,000
  • From 1 January to 31 March - Rs. 1,000
  • Penalty for Income above Rs. 5 lakh
  • Before 31 July - Nil
  • From 1 September to 31 December - Rs. 5,000
  • From 1 January to 31 March - Rs. 10,000