ITR Filing Date Extended: A Relief for Taxpayers This Year
As the year comes to an end, taxpayers across India have been eagerly awaiting updates on the deadline for filing their Income Tax Returns (ITR). In a welcome announcement, the government has officially extended the ITR filing deadline for the financial year 2023-24 to January 31, 2024. This extension provides much-needed relief to individuals and businesses scrambling to meet the original deadline of December 31, 2023.
Why Was the Deadline Extended?
The extension has been attributed to multiple factors, including:
- Technical Glitches: Many taxpayers reported difficulties accessing the Income Tax e-filing portal due to increased traffic as the previous deadline approached.
- Year-End Workload: Businesses and professionals often face a significant workload in December, making it challenging to gather and verify all necessary documents for ITR filing.
- Pandemic Aftereffects: While the pandemic’s peak has passed, its economic impact lingers, with many individuals and businesses still in recovery mode.
Recognizing these challenges, the government’s decision aims to ensure compliance without undue stress on taxpayers.
Who Benefits from the Extension?
The extension applies to all taxpayers required to file their ITR by December 31, including:
- Salaried individuals
- Freelancers and professionals
- Businesses under presumptive taxation
- Partnership firms and LLPs
- Companies subject to audit
ITR Forms: Who Needs to File?
The extended deadline applies to all taxpayers, regardless of the ITR form they need to file. Here’s a quick overview of the most commonly used forms:
- ITR-1 (Sahaj): For individuals with income from salary, one house property, and other sources (excluding lottery income) up to ₹50 lakh.
- ITR-2: For individuals and HUFs not having income from business or profession.
- ITR-3: For individuals and HUFs having income from a proprietary business or profession.
- ITR-4 (Sugam): For individuals, HUFs, and firms opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE. ( Buisness Owners )
Taxpayers must identify the appropriate form based on their income sources and other financial details.
Steps to Take Advantage of the Extended Deadline
- Gather Necessary Documents: Ensure you have all the required documents, such as Form 16, interest certificates, and investment proofs.
- Verify Tax Deducted at Source (TDS): Cross-check your TDS details with Form 26AS or the Annual Information Statement (AIS).
- Revisit Deductions and Exemptions: Double-check for any eligible deductions under sections like 80C, 80D, and 10(14).
- Avoid Last-Minute Rush: Use the extra time wisely to file your return accurately. Avoid waiting until January 30 or 31 to prevent technical issues.
Penalties and Late Fees
While the extension provides relief, filing after January 31, 2024, will attract penalties under Section 234F of the Income Tax Act. Late fees can go up to ₹10,000, depending on your taxable income.
Expert Tips for Hassle-Free Filing
- Use Reliable Software: Leverage trusted tax-filing platforms to minimize errors.
- Consult a Professional: If your income sources are complex, seek help from a chartered accountant or tax consultant.
- Stay Updated: Keep an eye on official announcements to avoid misinformation.
Conclusion
The extension of the ITR filing deadline to January 31, 2024, is a much-needed breather for taxpayers. However, it’s essential to use this time effectively to ensure accurate and timely filing. Start preparing today to avoid the last-minute rush and secure your financial peace of mind.