As the end of the financial year approaches, it’s time to start preparing for filing your Income Tax Return (ITR) for the Assessment Year (AY) 2024-25. Filing your taxes accurately and on time ensures compliance with the law and helps you avoid penalties. Here are three essential tips to guide you through the process:
1. Understand the Revised Tax Slabs and Regimes
The Union Budget 2024 introduced significant changes to income tax slabs and regimes. The new tax regime has become the default option, offering reduced tax rates without major exemptions. However, if you wish to claim deductions and exemptions, you can opt for the old tax regime. For instance, the standard deduction has been increased from ₹50,000 to ₹75,000, exempting income up to ₹7.75 lakh under the new regime. en.wikipedia.org
2. Choose the Appropriate ITR Form
Selecting the correct ITR form is crucial for accurate filing. For salaried individuals, ITR-1 (Sahaj) is typically applicable if your total income is up to ₹50 lakh and includes income from salary, pension, or other sources. If you have income from business or profession, consider filing ITR-3. incometax.gov.in
3. Be Aware of Filing Deadlines and Penalties
Timely filing of your ITR helps you avoid late fees and penalties. For AY 2024-25, the due dates are as follows:
- Individuals, Hindu Undivided Families (HUFs), and Businesses not requiring audit: July 31, 2024
- Businesses requiring audit: October 31, 2024
- Taxpayers requiring report under section 92E (Transfer Pricing): November 30, 2024
Filing after these dates may result in late fees, which can be substantial.
