The Month for Tax Filings and Chartered Accountants

“I need an MBA for running my business, but CA to teach them how to run a business!!!----Ratan Tata”

These thoughts of Ratan Tata underscores the critical role that chartered accountants (CAs) play in business operations and financial management. Just as CAs are indispensable for guiding businesses through intricate financial landscapes, they also serve a pivotal role in ensuring smooth and compliant tax operations for individuals.

As the July 31 deadline to file an income tax return approaches, individuals are reminded of the importance of proactive tax compliance. Much like seeking the expertise of a CA in business strategy, enlisting the help of a qualified CA can make the ITR filing journey seamless. They not only ensure adherence to tax laws but also optimize returns and navigate complexities effectively.

Filing your Income Tax Return (ITR) on time not only fulfils legal obligations but also establishes a robust financial history, which is crucial for obtaining loans and other financial transactions. By engaging with a knowledgeable CA, individuals can confidently manage their tax responsibilities, benefiting from strategic financial guidance akin to that provided to businesses. It's important to file an income tax return to maintain compliance and ensure financial stability.

This proactive approach not only aligns with Ratan Tata’s perspective on the pivotal role of CAs but also ensures individuals maximize their financial efficiency and compliance when they file an income tax return in the realm of personal taxation.

Importance of Filing ITR

Compliance with Law: Filing your ITR ensures you meet legal requirements, helping you avoid penalties for late submission.

Claiming Tax Refunds: Timely filing allows you to claim any eligible tax refunds when you file an income tax return.

Financial Documentation: Provides essential financial documentation required for loans and other financial transactions.

Building Financial History: Regular filing helps build a robust financial history, which is beneficial for long-term financial planning. It demonstrates responsible financial management and compliance with tax laws, positioning individuals favourably for future financial endeavours. It's crucial to file an income tax return to maintain this positive track record and ensure ongoing financial stability.

Rebate Eligibility: Under the new tax regime, individuals with a net taxable income of up to ?7 lakh are eligible for a tax rebate under Section 87A. Under the old regime, the rebate limit remains at ?5 lakh. It's crucial to file an income tax return to benefit from these rebates.

Filing a Nil Return

Even if you have no taxable income or your total income is below the taxable threshold, filing a Nil Return is important; you still need to file an income tax return to maintain compliance and keep your financial records up-to-date.

Legal Requirement: Fulfill the legal requirement of submitting an ITR.

Financial Record: Maintain a record with tax authorities, ensuring compliance with tax regulations by making sure to file an income tax return.

New Tax Regime

Default Regime: From FY 2023-24 and AY 2024-25, the new tax regime is the default.

Choice of Regime: Taxpayers can choose between the old and new regimes until the filing of the return for AY 2024-25.

Regime Flexibility: Individuals without business income can switch between regimes each financial year when they file an income tax return.

Documents Needed for Filing ITR

• Form 16: TDS certificate issued by your employer.

• Other Income Sources: Details of other income, like interest on FDs and rental income, must be reported when you file an income tax return.

• PAN Card: Essential for identity verification.

• Bank Statements: Reconcile income details with TDS forms and bank statements when you file an income tax return.

• Investment and Deduction Proofs: Documents under sections 80C, 80D, 80E, 80TTA, etc.

• Bank Account Details: Necessary for processing tax refunds.

Professional Assistance

Substantial Income: For individuals with substantial income, consulting a tax professional can help minimize errors and optimize tax planning when you file an income tax return.

Audit Requirement: Professionals earning more than ?50,00,000 annually must have their returns audited by a Chartered Accountant.

Filing Process

Register on the Income Tax e-Filing Portal: If not already done.

Calculate Total Income: From all sources, including rental income, capital returns, etc., it is essential to accurately report your earnings when you file an income tax return.

Gather Necessary Documents: Bank and credit card statements and TDS certificates (Form 16, Form 16A, and Form 26AS).

Determine Tax Liability: Choose the appropriate ITR form.

Fill Out ITR Form: You can file an income tax return online or using tax filing software for convenience and efficiency.

Verify Details: Double-check pre-filled details when you file an income tax return to ensure accuracy and completeness

Submit ITR: Verify via Aadhaar OTP, net banking, etc.

Belated Return

Deadline: For FY 2023-24 (AY 2024-25), the ITR filing deadline is July 31, 2024.

Late Filing: If missed, file a belated return by December 31, 2024, for income tax e-filing last date.

Penalties: Late filing results in an interest charge of 1% per month on unpaid tax (Section 234A) and a late fee of ?5,000 (reduced to ?1,000 if income is below ?5 lakh) if you miss the income tax e-filing last date.

Carry Forward Losses: File before the deadline to carry forward losses from sources like the stock market, mutual funds, properties, or businesses for income tax e-filing last date.

By adhering to these guidelines and ensuring timely filing, taxpayers can maintain compliance, avoid penalties, and secure their financial well-being.

Important Tax Deadlines for July 2024 That You Shouldn't Miss

July 7 (Sunday)

• Tax Deposit: Due date for depositing tax deducted or collected for June 2024. Government offices must transfer all deducted or collected sums to the Central Government on the same day without requiring an Income-tax Challan. It's essential to file an income tax return to ensure accurate reporting and compliance with tax regulations.

• TDS Deposit (Quarterly Option): The due date for taxpayers permitted quarterly deposit of TDS under sections 192, 194A, 194D, or 194H for the period April 2024 to June 2024 can affect the income tax e-filing last date.

July 15 (Monday)

TDS Certificate Issuance:?

• TDS certificates under section 194-IA for May 2024.
• TDS certificates under section 194-IB for May 2024.
• TDS certificates under section 194M for May 2024.
• TDS certificates under section 194S (by specified person) for May 2024.

Quarterly Statements:?

• Quarterly statement in Form No. 15CC by authorised dealers for foreign remittances for the quarter ending June 2024.
• ?Quarterly statement of TCS deposited for the quarter ending June 30, 2024.
• With the professional assistance of Lawgical India you can?upload declarations received from recipients in Form No. 15G/15H during the quarter ending June 2024.

July 30 (Tuesday)

Challan-cum-Statement (TDS):

• Furnishing of challan and statement for tax deducted under section 194-IA for June 2024.
• Furnishing of challan and statement for tax deducted under section 194-IB for June 2024.
• Furnishing of challan and statement for tax deducted under section 194M for June 2024.
• Furnishing of challan and statement for tax deducted under section 194S (by specified person) for June 2024.

July 31 (Wednesday)

Income Tax Returns:

• Deadline for filing income tax returns for the assessment year 2024-25 for all assesses, except for corporate assesses, non-corporate assesses with audited accounts, partners of audited firms, and individuals specified under section 92E.

Quarterly Statements:

• Quarterly statement of TDS deposited for the quarter ending June 30, 2024.
• Quarterly return of non-deduction of tax at source by banking companies from interest on time deposits for the quarter ending June 30, 2024.

Other Returns and Statements:

• Statements are required from scientific research associations, universities, colleges, or Indian scientific research companies if the income tax return due date is July 31, 2024.
• Intimation in Form 10BBB by pension funds and Form II by Sovereign Wealth Funds for investments made in India for the quarter ending June 2024.

By keeping track of these key dates and ensuring timely submissions, taxpayers like you can stay compliant with tax regulations and avoid potential penalties related to income tax e-filing last date. With Lawgical India , you can keep tabs on all the details essential to file an income tax return.