Key deadlines to remember:

• Individuals with income from salary, business, or profession: For individual  persons earning income in India the due date is always July 31st of the succeeding year. For instance, the return for the financial year 2023-24 (Assessment Year 2024-25) must be filed by July 31, 2024.Only excpetion is for a partner of a firm that undergoes tax audit
• Individuals opting for presumptive taxation: For persons declaring income under the presumptive tax scheme also due date is the 31st of July of the succeeding year
• Companies: For Corporate entities, that is Companies due date is Oct 31st of the succeeding year.
• Tax Audit cases: Irrespective of the nature of the person if income is filed subject to audit then the due date is 31st of October of the succeeding year. Additionally in such cases, Tax Audit Report in Form 3CB /3CD also needs to be filed within the 30th of September.

The Importance of Filing Income Tax Returns on Time

Filing your income tax return on time is crucial for several reasons:

• Avoid Late Fees: Failure to file ITR within due date will result in late fee u/s 234F . It can vary between Rs 1000  to Rs 10,000
• Claim refunds: In case you have excess tax credit comparing to your tax liability , filing return of income is the only way to claim the excess tax paid as refund
• Loan approvals: ITR serves as proof of income. Details of ITR filed for 3 preceding years are commonly requested for loan approvals
• Visa applications: ITR being an accepted document for Income Proof is required for processing VISA Request

Steps to File Your Income Tax Return

Follow these steps to ensure a smooth filing process:

• Keep ready all necessary documents: Collect your income proof, investment details, deductions, bank statements and other relevant documents.This list would depend based on your nature of activities
• Choose the right income tax form: Select the correct ITR you for reporting your income. If not your return might get marked defective 
• Calculate your income and tax liability: Compute your total income and determine your tax liability using income tax online utility. If you require an expert hand feel free to reach out to team Clearbiz
• Claim deductions and exemptions: Ensure you have a good understanding of the deductions and exemptions to minimize your tax burden, Claim them in your ITR
• Verify and submit your return: Carefully review the details and submit your form online

Types of ITR

ITR-1 (Sahaj)

• Can be Individuals residing in India with a total income of up to Rs. 50 lakh.
• Income Sources that can be reported under this ITR are salary, income from house property, Interest income, etc.
• Do note Non-Residents cannot file ITR1

ITR-2

• Can be used by Individuals or HUFs having income other than business income
• Income that can be reported includes all income reported under ITR 1 plus capital gains

ITR-3

• This form is for individuals having income from business or profession
• All income sources can be reported under this form

ITR-4 (Sugam)

• This form is for individuals/HUF /Partnership firms having income declared under presumptive taxation
• Income Sources: For businesses with a turnover up to Rs. 2 crore under Section 44AD and professionals with a turnover up to Rs. 50 lakh under Section 44ADA.
• Suitable for: Small businesses and professionals opting for the presumptive taxation scheme.

ITR-5

• This form is for reporting of income by Partnership Firms , AOP, BOI

ITR-6

• This form must be used by corporates or Companies of all kinds.

ITR-7

• Specified institutions /entities like Trusts , political parties use ITR 7 for reporting their income

Common Mistakes to Avoid

To prevent delays and penalties, avoid these common mistakes:

• Missing the deadline: Always plan and complete the filing before the due date. Waiting till the last date might lead to unnecessary rush and tension.
• Incorrect information: Furnishing incorrect information or wilfully covering up details can lead to tax assessments and demands.
• Ignoring verification: E Verifying your return is a very important step that many people forget to do. The ITR is valid if and only if it is verified and taken for processing after verification.

Tips for a Stress-Free Filing Experience

• Start early: Begin gathering documents and information well before the deadline. If you are salaried make sure your employer issues Form 16 correctly
• Organize your finances Make sure  you have a clear record of all your financial transactions to report income accurately
• Utilize digital tools: Take advantage of the income tax department’s e-filing portal and utilities to make filing easier.
• Seek professional help: If you find the process complex, never hesitate to take help from professionals

What Happens if You Miss the Income Tax Filing Deadline?

Missing the income tax filing deadline has serious consequences:

• Late filing fees: Late filing fee. of Rs 1000 to 10,000 can be levied by the department
• Interest: Interest will be levied on the unpaid tax amount amounting to 1% for each or part of each month

FAQs About Income Tax Filing Deadline

Q: What happens if I file my income tax return after the due date? 

A: Every person whose income is over and above RS 250,000 needs to file an ITR for the Financial Year. Hence filing of ITR under such cases is an offence. A late fee of Rs 1000 (Upto total Income of Rs 500000 and Rs 5000 for others ) subject to minimum of Rs 10,000 can be levied

Q: Can I get an extension for filing my income tax return? 

A: There is no such process available. However, taxpayers can file ITR as a belated return or Updated return as the case applies 

Q: What documents are required for income tax filing? 

A: Depending on the income Form 16 , statement, Details of Credits etc would be sufficient for filing ITR

Q: Can I file my income tax return online?

 A: Yes, visit the official portal of the income tax department to file your ITR online

Q: What are the benefits of e-filing income tax returns?

 A: The income tax department accepts only E returns now. Also with digitalisation the process is simpler and faster

Conclusion

Making sure that the income tax filing is done before the  deadline is important for avoiding penalties and late filing inetrest. By following the guidelines outlined in this here, you can finish the income tax filing process accurately with confidence. Always remember, staying organized, starting early, and seeking professional help when needed can significantly reduce your tax-related stress.If you need help feel free to reach out at info@clearbiz.in