Why is it important to file an ITR?

Filing an ITR is crucial as it serves as proof of your income and tax payments. It is essential for obtaining loans, applying for visas, and claiming tax refunds.

What are the consequences of not filing an ITR on time?

Failing to file your ITR on time can result in penalties, interest on the due tax amount, and legal consequences.

How can I file my ITR for 2024?

You can file your ITR online through the Income Tax Department’s e-filing portal. The process involves registering on the portal, selecting the appropriate ITR form, filling in the required details, uploading necessary documents, and submitting the form.

What documents are required for filing an ITR?

The documents needed include Form 16 (for salaried individuals), bank statements, interest certificates, investment proofs, TDS certificates, and details of any other income.

What should I do if I make a mistake in my ITR?

If you realise that you have made a mistake in your ITR, you can file a revised return under the deadline.

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How To File ITR 2024: Importance And Consequences

Samridhi

Author

Updated: 28-01-2025 at 6:25 AM

How To File ITR 2024: Importance And Consequences

July 31, 2024 is an important date for all taxpayers in India. It is the deadline given to taxpayers to do their ITR filing for the financial year 2023-24. On the same date, the assessment years 2024-25 starts.

It is important that all taxpayers do their tax filing before July 31 2024 to avoid consequences such as late fees, interest, penalties, and delays in refund processing.

What Is ITR?

ITR also known as Income Tax Return is a declaration form submitted by the taxpayers to the Income Tax Department. An ITR consists of a person’s detailed income, expenses and other relevant financial information for that specific financial year.

It is important to file ITR as it is needed for the government to assess a taxpayer's tax liability and to make sure they have disclosed all earnings and expenses in the correct amount.

Difference Between Financial Year And Assessment Year

A financial year is the period in which a taxpayer earns income from April 1 to March 31. A person’s tax returns are based on this period. Whereas, the assessment year is the year after the financial year during which the income earned in the previous year is assessed and taxed.

Let us understand it better.

Taxpayer ‘A’ does tax filing between April 1 2023 and March 31 2024. This period is known as the financial year. The assessment and taxation will be done from the Assessment year 2024-25.

Why Is It Important To File ITR Before July 31 2024?

The non-filing of ITR before the given due can result in many consequences. Let’s take a look at the consequences.

Penalties And Interest

The non-filing of ITR can lead to receiving penalties and interest on the outstanding tax amount. Under Section 234A of the Income Tax Act, a taxpayer will be liable to an interest of 1% for every month missed.

Late-Filing Fees

Under Section 234F, a taxpayer who files the returns after the due date will have to pay late fees of Rs. 5,000. But if the total income of the taxpayer is less than Rs. 5 lakhs, then the late fee will be Rs. 1,000.

Timely Refunds

Incomes received from various sources will have tax deducted from the amounts. A taxpayer is eligible to get refunds on the amounts deducted at source, given that they’ve done their ITR filing on time. Late tax filing may affect the timely refunds.

No Carry-Forward Of Losses

If a taxpayer misses the deadline to file ITR, they will not be allowed to carry forward their losses to the coming years.

Helps In Approval Of Loans

A loan will only be passed if the taxpayer has a good financial record. Therefore, if there are any late ITR filings, then the chances of loans being passed under the taxpayer’s name will reduce significantly.

Documents Required To File ITR

The following documents are required to be submitted by taxpayers who want to file ITR.

PAN and Aadhaar.
Bank Statements.
Form 16.
Donation receipts.
Stock trading statements from the broker platform.
Insurance policy paid receipts related to life and health.
Bank account information linked to PAN.
Aadhaar registered mobile number for e-verifying the return.
Interest certificates from banks.

How To File ITR: A Step-By-Step Guideline

Follow the instructions given below to learn how you can file ITR.

Visit the official Income Tax e-portal.
Log into the account using PAN and password.
Go to ‘File Income Tax Return’.
Select the assessment year.
Select status.
Choose ITR type.
Select a reason for ITR filing.
Confirm the necessary details already given.
Verify ITR via OTP, EVC, net banking, etc.

Conclusion

Taxpayers should ensure that they’ve done their tax filings before July 31 2024 so that no penalties and consequences occur in the future. Filing ITR is not just important for the government to assess a taxpayer's income and expenses but also to ensure smooth loan approvals and timely refunds of tax.

To read more on tax filings for the year 2023-24, visit the Income Tax Department website. For raising any query, you can contact the helpline number 1800 103 0025 or 1800 419 0025.

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