Income Tax Returns AY 2024-25

Ready to File Your Taxes?

It's that time of the year again—your Form 16 has arrived from your employer, signaling the start of tax return filing season. Whether you're eagerly awaiting a refund or dreading the tax bill, it's time to gather all your documents and file your returns before the due date.

Key Dates to Remember

Make sure to file your returns on or before the due dates specified by the Income Tax Act to avoid:

- Late Fees

- Interest Charges

- Penalties

- Notices from the Income Tax Department

You can file belated returns until December 31, 2024. If you miss this deadline, you will have to file updated returns, which we'll cover in a separate blog.

Additional Data You Will Need Besides Form 16

Here are some additional items you'll need to report, which won't be in your Form 16:

• Interest Income from Savings Accounts: This won't appear on your Form 16. Gather this data from your bank statements.

• Interest Income from Fixed Deposits or Other Deposits: Details can be found in Form 26AS, downloadable from the income tax website.

• Dividend Income: All dividends received are taxable and must be reported.

• Stock, Futures, and Options Trading: Download statements from your broker. Income from futures and options is business income, intraday trading is speculation income, and income from shares or mutual funds is either short-term or long-term capital gains, depending on the holding period.
• Sale of Immovable Property: Provide details of any land or building sales.

• Rental Income and Home Loan Interest: Report rental income, interest paid on home loans, and municipal tax receipts.

• Other Income: Include any other income received during the year.

• Deductions under Sections 80C/80D: If these aren't reflected in Form 16, make sure to include them.

Choosing the Right Form

Use the correct income tax return form based on your income type. For example, if you have capital gains, use ITR-2 instead of ITR-1. Using the wrong form or income heads will make your return defective.

Consequences of Late or Non-Filing

- Late Fee: Rs. 1,000 to Rs. 5,000 depending on your income.

- Interest: Added on the balance tax payable until you file and pay.

- Penalties: Imposed by the tax authorities.

- Notices: The last thing you want is a notice from the Income Tax Department.

Summary

- Ensure your return includes all income that needs to be reported.

- Use the correct ITR form.

- Avail all eligible deductions.

- Consider consulting a Chartered Accountant if you need assistance.

The Income Tax Department has a comprehensive view of your transactions thanks to digital payments, PAN-based reporting, and SFT reporting. Misreporting or under-reporting your income can lead to penalties, so make sure to be diligent in reporting all your income.