Understanding Income Tax Return Filing for FY 2023-24
Income Tax Return Filing for the Financial Year 2023-24 can be a confusing topic, especially if your income falls below Rs 7 lakh. Many individuals wonder if they still need to file their Income Tax Return in such cases. It’s essential to understand that filing your ITR is different from paying income tax. Even if you don’t owe any tax, you may still need to file your ITR under certain circumstances.
The deadline for filing your ITR for the current assessment year is July 31, 2024, for individuals who do not require an income tax audit for the FY 2023-24 (AY 2024-25). Filing ITR becomes mandatory if your gross taxable income exceeds the basic exemption limit or if you have engaged in specific transactions.
Under section 87A of the Income Tax Act, 1961, you can avail a tax rebate if your net taxable income is within Rs 5 lakh (old tax regime) or Rs 7 lakh (new tax regime). This rebate can help you reduce your tax liability, and in some cases, bring it down to zero.
However, even if you don’t owe any tax due to the rebate, filing your ITR is still necessary. According to experts, irrespective of your tax liability, filing ITR is compulsory if your gross total income exceeds the basic exemption limit.
When is ITR Filing Mandatory Regardless of Income Level?
There are certain situations where individuals must file an ITR regardless of their gross total income:
- If your annual bank deposits exceed Rs 50 lakh
- If your electricity bill surpasses Rs 1 lakh during the year
- If you own assets in a foreign country or have signing authority in overseas accounts
- If you are a professional earning more than Rs 10 lakh in a financial year
- If your TDS/TCS is over Rs 25,000 (or Rs 50,000 for senior citizens)
- If you spend Rs 2 lakh or more on foreign travel during the financial year
It’s crucial to file your ITR in these scenarios to comply with the income tax regulations.
Not filing your ITR on time can lead to various consequences, including penal interest, late fees, and loss of certain benefits like carrying forward losses from investments. It’s important to file your ITR before the deadline to avoid these penalties and ensure compliance with the tax laws.
If you are unsure about whether you need to file your ITR, it’s always recommended to consult with a tax expert or financial advisor for personalized guidance.