Advance tax payment is required if your total tax liability reaches or exceeds Rs.10,000 in a financial year.
Taxpayers in India are gearing up for the impending deadline as the clock ticks closer to the last date for filing Income Tax Returns (ITR). With July 31, 2024, looming as the cutoff, individuals across the nation are urged to ensure timely submission to avoid incurring additional charges or penalties.
The Income Tax Department has reiterated the significance of adhering to the deadline, emphasizing that late filings will result in a late fee of ₹ 500 per month, up to a maximum of ₹ 1,000. This announcement comes as the department reports that ITRs 1, 2, 4, and 6 have already been made available on the e-filing portal since April 1, 2024. Impressively, over 23,000 returns have been filed for the 2023-24 fiscal year, showcasing an early surge in compliance.
Notably, this year marks a departure from tradition, with taxpayers granted the opportunity to initiate their tax return filings on the very first day of the new financial year. Such measures are hailed as a significant stride towards simplifying compliance procedures and enhancing taxpayer services.
Among the available forms, ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) stand out as simpler alternatives, catering to the needs of small and medium taxpayers. Sahaj is tailored for resident individuals with income up to ₹ 50 lakh, encompassing earnings from salary, one house property, other sources such as interest, and agricultural income up to ₹ 5,000. On the other hand, Sugam is designed for individuals, Hindu Undivided Families, and firms (excluding Limited Liability Partnerships), with total income up to ₹ 50 lakh, predominantly deriving from business and profession activities.
In light of these developments, taxpayers are reminded that the obligation to pay advance tax arises when their overall tax liability reaches or exceeds ₹ 10,000 within the financial year. Moreover, any tax payments made on or before March 31 of the same financial year are duly recognized as advance tax, offering further clarity on tax compliance obligations.
Key Points:
Deadline: July 31, 2024
Penalty for Late Filing: Late fee of Rs.500 per month, up to a maximum of Rs.1,000.
ITR Forms Available: ITRs 1, 2, 4, and 6 are available for e-filing as of April 1, 2024.
Simplified Forms: ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to small and medium taxpayers.
This is the first time in recent years that taxpayers can file their ITRs on the first day of the new financial year, aiming for a smoother filing process.
Remember:
Advance tax payment is required if your total tax liability reaches or exceeds Rs.10,000 in a financial year. Any tax paid before March 31st of the financial year is considered advance tax.
Source: https://www.ndtv.com/india-news/itr-filing-last-date-2024-due-dates-for-filing-income-tax-returns-tds-advance-tax-payments-5453993
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