With the deadline approaching, the daily filing of income tax returns (ITR) has surged to an impressive 13 lakhs, the Income Tax Department reported. For the assessment year (AY) 2024-25, covering the fiscal year 2023-24, taxpayers were enabled to file returns from the first day of the new financial year, marking a first in recent times.
Record-Breaking Filings
As of July 14, 2024, over 2.7 crore ITRs have been filed, a 13 per cent increase compared to the same period last year. Notably, the milestone of one-crore ITRs for AY 2024-25 was achieved on June 23, with the two-crore mark reached on July 7, significantly earlier than the previous year’s dates of June 26 and July 11, respectively. For AY 2023-24, more than 6.91 crore returns were filed by July 31, 2023, and this number rose to 8.62 crore by March 31, 2024.
Important Deadlines and Penalties
The due date for filing returns by individuals and entities with non-audited accounts is July 31. After this date, taxpayers must pay an interest of 1 per cent per month on the unpaid tax amount. Additionally, late filings will incur a fee of ₹5,000 (₹1,000 for income below ₹5 lakh). However, there is no late filing fee for revised returns, and the deadline for late and revised filings is December 31.
Benefits of Timely Filing
Taxpayers can carry forward losses from sources like the stock market, mutual funds, properties, or businesses and offset them against income in subsequent years, significantly reducing future tax liabilities. However, this benefit is only available if the return is filed within the deadline.
Simplified ITR Filing Process
The Finance Act 2020 has simplified the income tax return filing process, allowing individuals to pay income tax at lower slab rates without claiming specified exemptions and incentives. Additionally, taxpayers are provided with pre-filled returns, including details such as salary income, bank interest, and dividends, to streamline the filing process.
Updated Form 26AS and Compliance
Taxpayers can update their returns within two years from the end of the assessment year to correct omissions or mistakes and pay any additional tax. The new form 26AS, effective from June 1, 2020, includes comprehensive information on tax deductions, specified financial transactions (SFT), tax payments, demands and refunds, and pending and completed proceedings.
Promoting Voluntary Compliance
Form 26AS now displays annual information against a PAN in advance of the ITR filing compliance date, promoting voluntary compliance and facilitating seamless pre-filing of ITR.
In summary, the surge in daily ITR filings as the deadline approaches underscores the proactive steps taken by the Income Tax Department to facilitate timely and efficient tax return submissions. With enhanced compliance measures and simplified processes, taxpayers are better equipped to meet their obligations, ensuring a robust and transparent tax environment.
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