FAQs on ITR Filing 2024

Who needs to file income tax returns?

If an individual’s total income exceeds the prescribed basic exemption limit, as per the Income Tax Act, 1961, it becomes mandatory for them to file an Income Tax Return (ITR) with the tax authorities. The entities required to file income tax returns include individuals, Hindu Undivided Families (HUFs), companies, firms, Limited Liability Partnerships (LLPs), trusts, associations, and any other artificial judicial persons whose income exceeds the threshold limit specified by the Income Tax Department.

Which ITR forms should I use for 2024, and what are the different types?

The Income Tax Return (ITR) forms are categorised based on the taxpayer’s residential status, income sources, and the nature of income. The following are examples of common ITR forms:

1. ITR-1 (Sahaj): For individuals having income from salaries, one house property, and income from other sources such as interest income.
2. ITR-2: For individuals and HUFS not having income from profits and gains of business or profession.
3. ITR-3: For individuals and HUFS having income from profits and gains of business or profession.
4. ITR-4 (Sugam): For presumptive income from business and profession.
5. ITR-5: For firms, LLPS (Limited Liability Partnerships), AOPS (Association of Persons), and BOIS (Body of Individuals).
6. ITR-6: For companies other than those claiming exemption under Section 11.
7. ITR-7: For persons, including companies, required to furnish returns under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F).

How do I figure out which Income Tax Return (ITR) I need to submit?

Taxpayers are mandated to file various tax returns based on factors such as their source of income and residency status. To assist in determining the appropriate Income Tax Return (ITR) form to file, individuals can utilise the “Help me decide which ITR form to file” option. This feature presents a series of questions designed to guide users in selecting the most suitable ITR form based on their specific circumstances.

What paperwork is required to file an ITR?

In order to file your taxes, it’s important to download AIS and gather copies of specific documents. These documents include Form 16, investment payment receipts, premium receipts (if applicable), and house rent receipts (if applicable). Although Income Tax Returns (ITRs) are annexe-free forms, you have the option to complete your return electronically or manually without submitting supporting documentation, such as TDS certificates or evidence of investment. Nevertheless, it’s crucial to retain these records, as they may be required during circumstances like assessments, enquiries, etc., when you would need to present them to the tax authorities.

What safety measures should I take to make sure my ITR filing goes smoothly?

Please adhere to the following procedures to ensure a smooth process when filing your return and receiving your refund:

1. Ensure that your PAN and UID are connected.
2. Verify your bank account in advance to expedite the refund process.
3. Select the appropriate ITR before submission, as failure to do so will render the submitted return incomplete.
4. Submit your return by the stipulated deadline.
5. Verify your return by opting for e-Verification (e-Verify Now is the recommended method).
6. A timely response to any notices received from the ITD is imperative to meet compliance requirements.

In my filed ITR, I committed a calculation error. Can I fix it and send my return again?

You can file a revised return if you have already submitted your income tax return but later discover errors. It is important to note that the amendment must be made within three months before the end of the relevant assessment year (AY). For the AY 2024-2025, the deadline to submit the amended return is December 31, 2024. It’s crucial to carefully review and rectify any mistakes within the specified timeframe to ensure accurate tax filings.

What occurs if my income tax return is filed after the 139(1) deadline?

Even if you miss the deadline specified in Section 139(1) of the income tax laws, you have the option to file your income tax return. However, it’s important to be aware that failing to meet the deadline may result in a late filing fee of up to ₹5000. Additionally, you will be required to pay interest on any outstanding tax obligations. Therefore, it’s recommended that you file your income tax return by the deadline to avoid these penalties and fees.

Why is it important to verify returns after submission?

After submitting your tax return electronically, you have a 30-day window to verify it. The verification process can be completed through various channels, such as the Aadhaar-OTP method, your net banking account, your demat account, or the e-filing portal. Additionally, you have the option to download the acknowledgement form, ITR-V, and physically mail it to the central processing centre (CPC) of the Income Tax Department in Bengaluru. It’s crucial to complete the verification process within the specified timeframe, as failure to do so will result in the rejection and invalidation of your tax return.