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All you need to know about Income Tax return Benefits Due Dates

What are the benefits and due dates of filing ITR in 2024?

Filing of income tax returns is a very important aspect of financial responsibility that every individual and business must follow. It is a process through which taxpayers report their income earned during a financial year, account for their duty liability and fulfill their obligations towards the government. Understanding the income tax return, including its due date for the year 2024 and its various benefits, is essential for every taxpayer to ensure compliance with tax laws and avail its benefits effectively.

What is Income Tax Return?

Income tax return is a type of comprehensive document filed by taxpayers with the tax authorities to declare their income earned during a specific period, usually a financial year. This includes details like their salary, wages, interest income, rental income, capital gains and any other sources of income. Additionally, taxpayers should report deductions, exemptions and tax credits for which they are eligible, which can help reduce their overall tax liability.

Income tax returns are an accurate and clear way by which individuals and businesses can accurately disclose their financial affairs to the government. It allows tax authorities to assess a taxpayer's income, verify tax payments made, and ensure compliance with applicable tax laws and regulations.

Types of Income Tax Return forms:-

ITR forms, or income tax return forms, are documents used for filing annual income tax returns in India. There are several types, including:

ITR-1: For individuals with income from salary, pension or other sources.
ITR-2: For individuals and HUFs without income from business or profession.
ITR-3: For individuals and HUFs having income from business or profession.
ITR-4: For individuals, HUFs and firms with presumptive income from business or profession.
ITR-5: For firms, LLP, AOP, BOI and other entities.
ITR-6: For companies other than companies claiming exemption under section 11.
ITR-7: For entities like trusts, political parties and educational institutions.

Income Tax Return Due Date for all categories for financial year 2023-24 (Assessment year 2024-25).

Categories	Due Date
Individuals / HUF/ AOP/ BOI (books of accounts not required to be audited)	July 31, 2024
Businesses (Requiring Audit)	October 31, 2024
Businesses requiring transfer pricing reports (in case of international/specified domestic transactions)	November 30, 2024
Revised return	December 31, 2024
Belated/late return	December 31, 2024
Updated return	March 31, 2027 (2 years from the end of the relevant Assessment Year)

Benefits of filing income tax returns:

Filing income tax returns offers many benefits to taxpayers, which go beyond mere compliance with tax laws. Here are some of the key benefits:

1. Compliance with Tax Laws:

Filing income tax returns ensures compliance with tax laws and regulations mandated by the government. Compliance also helps in maintaining the integrity of the tax system; it reflects the taxpayer's commitment to fulfil his civic duty and contribute to the development of the country by paying taxes honestly and transparently andpromotes fairness and equality among taxpayers.

2. Protection from punishment and legal consequences:

Failure to file income tax returns within the prescribed due date may result in fines, penalties and legal consequences being imposed by the tax authorities. These penalties may vary depending on the amount of tax payable, delay in filing and other factors. By filing returns on time, taxpayers can avoid such punitive measures and maintain a clean tax record, thereby protecting their financial interests and reputation.

3. Claiming Tax Refund:

Many taxpayers are eligible for tax refunds if they have paid excess tax or are entitled to deductions and exemptions. Filing income tax returns allows taxpayers to immediately claim these refunds and receive the money given to them by the government. Refunds can provide much-needed financial relief and liquidity, especially during challenging economic times, and can be used for a variety of purposes such as saving, investing or spending.

4. Financial Documentation and Record-Maintenance:

Income tax returns serve as essential financial documents that provide a comprehensive overview of a taxpayer's income, expenses, investments, and assets. By maintaining accurate records through tax returns, taxpayers can effectively track their financial activities, assess their financial health and plan for the future. These records can also serve as valuable documents for various financial transactions, such as applying for a loan, mortgage, insurance or visa.

5. Building Financial Credibility:

Filing regular income tax returns enhances the financial credit standing and credibility of the taxpayer in the eyes of financial institutions, creditors and other stakeholders. This establishes a track record of responsible tax compliance, which can be beneficial when applying for loans, credit cards or other financial services. Lenders and creditors often review a taxpayer's tax returns as part of their risk assessment process to evaluate his or her creditworthiness and repayment ability. A history of timely and accurate tax filing can strengthen a taxpayer's financial profile and increase the chances of securing favorable terms and conditions on financial products.

Conclusion:

In conclusion, filing income tax returns is a fundamental aspect of responsible citizenship and financial management. It is important for every taxpayer to understand the due date of the year 2024 and its significance including its various benefits. By filing accurate and timely returns, taxpayers can ensure compliance with tax laws, avoid penalties, claim refunds, maintain financial records and build financial credibility. Ultimately, filing income tax returns is not only a legal obligation but also a public relations exercise.

All you need to know about Income Tax return Benefits Due Dates

What are the benefits and due dates of filing ITR in 2024?

What is Income Tax Return?

Types of Income Tax Return forms:-

Benefits of filing income tax returns:

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