An Income Tax Return (ITR) serves as a document primarily utilized for submitting information regarding one’s earnings and the corresponding tax obligations to the Income Tax Department of India. Indian tax regulations stipulate that every individual and entity generating income must file an IT return, aiding in the disclosure of taxable earnings, tax responsibilities, and claims for deductions, if applicable.
Firms, Hindu Undivided Families (HUFs), and self-employed or salaried individuals are required to submit income tax returns punctually to avoid penalties, as per Indian income tax laws. Failure to meet the deadline incurs a penalty for late submission, making it essential for taxpayers to adhere to the prescribed due dates.
With the deadline for ITR filing approaching, it is imperative for taxpayers to remain cognizant of the income tax return due dates to circumvent penalties outlined in the Income Tax Act of 1961. This article provides a comprehensive overview of the mandatory due dates for the fiscal year 2023-24 (Assessment Year 2024-25), catering to the requirements of practising Chartered Accountants (CA), Company Secretaries (CS), and tax professionals, who may also access information on advance tax and revised Income Tax Return (ITR) due dates.
What is Income Tax?
For the provided financial year the income tax return is a form that is used to specify your gross taxable income. The taxpayers use this form to declare their income, deductions claimed, exemptions, and taxes paid. It computes your net obligation of income tax in a financial year. As per the Income Tax Act of 1961, a person under 60 years of age should file tax returns if a part of their income is liable to tax. If your taxable income is more than Rs. 5 lakh in a fiscal year or you have filed the advance tax then you are required to file an ITR. You have to pay your due taxes as per your applicable income tax slabs while filing tax returns.
For the good governance of a state or nation tax is an essential arm. There are different types of taxes and they can all be classified into two main groups i.e. Direct tax and Indirect Tax. A direct tax is charged on the income or profit of an individual. Income tax is an example of direct tax. Indirect tax is charged on goods and services. Income tax due dates arrive every year in March ending and are to be complied with for safeguarding financial interest.
GST or the VAT is a perfect example of this subject.
Similar to all taxes, accrues from Income Tax also include a fine portion of the country/state treasury. Also, Income Tax acts as a fiscal deficit stabilizer and minimizes the impact of Global Economic Cycles.
Types of Income Tax
Income Tax is further subdivided into many categories but there are three main categories of income tax based on the category of the payee and time of payment.
These are:
- 1. TDS (Tax Deducted at Source)
- 2. Advance Tax
- 3. Self-Assessment Tax
1. Tax Deducted at Source (TDS)
TDS, as it is commonly known as Tax Deducted at Source. The tax is paid by a third person/corporation who/which happens to be the source of income for the taxpayer if the payment exceeds certain threshold limits at the rate prescribed by the government of India.
The other person/corporation must, however, abide by the prevalent IT laws. TDS is an ideal mechanism for the government to ensure timely Income Tax payment as well as curb tax evasion.
2. Advance Tax
Also referred to as the ‘pay as you earn Scheme’ in contrast to the scheduled annual tax payment tax procedures, Advance Tax is paid on a Presumptive basis.
Taxpayers, Businesses, Salaried Individuals, and freelancers with tax liabilities during the current financial year are greater than Rs 10,000 needed to pay advance tax in four instalments throughout the financial year in which they earn income.
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Advance Taxes of Income Tax for FY 2023-24 (AY 2024-25)
Payment of Advance Tax: Self-employed and businessmen
| Due Date | Pay Advance Tax |
|---|---|
| On or Before 15th June | 15% |
| On or Before 15th September | 45% |
| On or Before 15th December | 75% |
| On or Before 15th March | 100% |
Payment of Advance Tax: Companies
| Due Date | Pay Advance Tax |
|---|---|
| On or Before 15th June | 15% |
| On or Before 15th September | 45% |
| On or Before 15th December | 75% |
| On or Before 15th March | 100% |
Note: The Assessee who are covered under 44AD and 44ADA (i.e. Presumptive Income) are also required to pay Advance Tax on or before 15th March of the previous year. However, any tax paid till 31st March will be treated as Advance Tax.
3. Self-Assessment Tax
This is the balance or remaining tax paid by an individual or taxpayer after taking into account the TDS and Advance Tax.
What is meant by Assessment year and Financial Year?
Financial Year is the current working year in which an individual or corporation earns income. The Assessment Year is, on the other hand, the succeeding year in which an evaluation of the previous year’s income has to be made.
Assessment Year involves:
- Income Evaluation.
- Paying Taxes on the evaluated income as per the rate(progressive) and time ( regular or periodical or occasional) notified by the IT Department.
- For FY 2023-24, the AY is 2024-25.
- The due Date for filing Income Tax Returns for FY 2023-24 (AY 2024-25) by the assessee whose accounts are not required to be audited is 31st July 2024.
- The due date for filing Income Tax Returns for FY 2023-24 (AY 2024-25) by assessees whose accounts are required to be audited is 31st October 2024.
- The due date for all the categories of assesses in UTs of J&K and Ladakh who are required to file ITR and accounts not required to be audited is 31st July 2024 while for those whose accounts are required to be audited is 31st October 2024.
Income Tax Returns (ITR)
ITR are forms that are mandatorily filled by individuals whose annual income is greater than a pre-set threshold limit set by the Finance Department.
These forms provide the details of an individual’s gross income from various sources and the tax paid by the individual taxpayer on the gross income. It also provides the details of refund claims by the assesses as per the rules set by the Finance and IT Department.
In simple terms, ITR forms are taxpayers’ statements detailing/her earnings Salary, interest, dividends, capital gains, or other profits, the total tax paid on earnings, and the appropriate refunds to be repaid to him/her by the Government.
As per the Central Board of Direct Taxes, individual taxpayers need to file only 6 of the 9 ITR Forms.
These include:
- ITR-1
- ITR-2
- ITR-3
- ITR-4
The remaining three forms are to be filed by companies and firms alone:
- ITR-5
- ITR-6
- ITR-7
Form ITR-1
Also known as the Sahaj Form, ITR-1 has to be filed by individual taxpayers alone. ITR-1 is filed by taxpayers having income up to Rs 50,00,000 from the below-mentioned sources:-
- If the source of Income is Salary or Pension.
- If the source of income is from one housing property(the case where losses of previous years are carried forward are not included in this ITR).
- Individuals with income sources like fixed Deposits, Investments, Shares etc
- ITR-1 can not be filed if the taxpayer is a joint owner in House Property.
- Individuals whose net agriculture income is less than Rs 5,000.
- If the clubbed income of the minor or wife is shown, then ITR-1 can be filed only in case of their source of income as mentioned in the above points.
- ITR 1 cannot be used by residents having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
- where TDS has been deducted u/s 194N or
- if income tax is deferred on ESOP
Form ITR-2
This form was introduced during the assessment year 2015-16 for use by Hindu Undivided Family (HUF) or any individual. The following individuals/taxpayers can file the ITR-2 Form.
- Those individuals who are not eligible to file ITR-1 and
- Those taxpayers have no income under the head of “profits or gains of business or profession”.
Form ITR-3
ITR 3 Form is for use by a Hindu Undivided Family or an individual
- Who claims income under the head “profits or gains of business or profession”
- Who works as a partner in a firm?
- claims income under the head “profits or gains of business or profession”.
Form ITR-4
Also known as Sugam, the ITR 4 Form is for use by HUF/ individual / Partnership Firms whose total income consists of:-
- Business income evaluated about special provisions mentioned in section 44AD and section 44AE of the Act for computation of business income; or
- Professional income evaluated about special provisions of sections 44ADA; or
- ITR-4 can not be filed if the taxpayer is a joint owner of the House Property.
- Salary/ Pension; or
- Income from One House Property (excluding cases where a loss is brought forward from previous years); or
- Income from other sources (excluding windfalls like lotteries or horse racing)
Form ITR-5
ITR-5 is for firms, LLPs, AOPs (Association of Persons) and BOIs (Body of Individuals). Further, it is also meant for an artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority.
Form ITR-6
ITR 6 can be used by companies not claiming exemption on income from property held for charitable or religious purposes under section 11.
Form ITR-7
ITR 7 Form can be used by persons as well as companies which are required to furnish returns under:
- section 139(4A) or
- section 139(4B) or
- section 139(4C) or
- section 139(4D) or
- section 139(4E) or
- section 139(4F).
Income Tax Return Due Dates for FY 2023-24 (AY 2024-25)
The income tax due dates for the FY 2023-24 (AY 2024-25) for all the categories of taxpayers are specified below:
| Particulars AY 2024-25 | Due Date |
|---|---|
| Individuals, HUF, BOI, AOP (Income Tax Return by Assesse whose Books of Account are not required to be audited) | 31st July 2024 |
| Filing ITR Due Date for (Assessee who are required to furnish report under sec 92E) | 30th November 2024 |
| Due date of filing the Income Tax Return by businesses whose Books of Account are required to be audit | 31st October 2024 |
| Due Dates for Tax Audit Report (3CA-3CD/3CB-3CD) (“filing of Tax Audit Report for all categories of assessees whose account are required to be audited”) | The date one month prior to the due date for furnishing the return of income under sub-section (1) of section 139 |
| The due date of furnishing of belated/revised Return of Income for the AY 2024-25, under sub-section | 31st December 2024 |
Latest notification
- The income tax department extended the last date to link PAN with Aadhaar is May 31, 2024. Read Also
-> Rebate
The Interim Budget for FY 2019-20 has introduced full tax rebates under section 87A for individuals earning net taxable income up to Rs 5Lakh which means that the maximum rebate allowed under section 87A is 12,500. However, if the individual earns more than Rs 5 Lakh as net taxable income then no rebate will be allowed.
-> Late Fee
Late filing of tax returns for the financial year 2023-24 was notified to taxpayers by the income tax department, which imposed a penalty of Rs 5000. In the case of incomes below Rs 5 lakh, the penalty will not exceed Rs 1000.
| Late Income Tax Filing Fee Details | ||
| E-Filing Date | Total Income Rs 5,00,000 | Total income more than Rs 5,00,000 |
| Before 31st July 2024 (Non-audit) and 31st october 2024 (Audit cases) | Rs 0 | Rs 0 |
| After 31st July 2024 (Non-audit) and 31st october 2024 (Audit Cases) | Rs 1000 | Rs 5000 |
-> Limit In Donations
Previously, cash donations of up to Rs. 10,000 were permitted in terms of deduction.
-> Section 194-IB For HUF and Individuals Paying Rent Exceeding Rs 50,000 a Month
HUF and Individuals who pay Rs. 50,000 and more in rent per month, 5% TDS will be deducted on such rent amount.
-> Cess
The government charges 4% Health and Education Cess on the direct income tax liability of individuals
-> Income from Salaries
From the salaried income, a standard deduction at a fixed price of Rs. 50,000 for reimbursement and Transport of various medical spendings will be permitted. This deduction is also exercisable to Pensioners who presently do not obtain those benefits.
Moreover, the medical reimbursement advantages in hospitalization cases will be available along with the standard deduction as mentioned above.
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