Navigating ITR Penalties: What you need to know for FY 2023-24? Late filing can incur a fixed penalty of Rs 5,000, with additional interest on outstanding taxes if applicable. Tax deducted at source (TDS) violations, such as non-deposit or incorrect deductions on property transactions, attract penalties up to 1.5% per month. Timely filing is crucial to claim deductions and avoid penalties up to 300% for tax evasion, ensuring compliance and maximizing tax benefits
As the financial year comes to a close, taxpayers must prepare for the annual ritual of filing their income tax returns (ITR) for FY 2023-24. This article aims to guide taxpayers through the intricacies of the process, highlighting crucial deadlines, potential penalties, and other pertinent considerations based on information from the official Income Tax Department regulations.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
Understanding Filing Deadlines and Penalties
The due date for filing income tax returns for individuals for FY 2023-24 is July 31, 2024. Failing to meet this deadline can result in penalties. According to ET Wealth, late filing penalties include a fixed penalty of Rs 5,000 if the return is filed after the due date. Moreover, taxpayers with a tax liability exceeding Rs 10,000 may face an additional 1% interest per month on the outstanding tax amount.TDS-Related Obligations and Penalties
Tax deducted at source (TDS) plays a significant role in income tax compliance. If TDS is not deducted on property purchases exceeding Rs 50 lakh, or if it's deducted but not deposited with the government, penalties can range from 1% to 1.5% per month, respectively. These penalties are designed to ensure timely compliance with tax regulations and avoid financial penalties.Other Tax Violations and Consequences
Various other violations can lead to severe consequences. For instance, providing an incorrect PAN number can result in a penalty of Rs 10,000. Cash transactions exceeding Rs 2 lakh attract penalties equivalent to 100% of the transaction amount. Moreover, tax evasion penalties range from 100% to 300% of the evaded amount, with potential imprisonment for serious offenders.Implications of Late Filing
Late filing not only incurs financial penalties but also affects the taxpayer's ability to carry forward losses and claim deductions/exemptions. For instance, deductions under sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE may not be available if the ITR is filed after the original deadline. Timely filing is crucial to maximize tax benefits and avoid unnecessary financial burdens.Legal Provisions and Relief Measures
To provide relief to taxpayers who miss the initial filing deadline, the Income-tax Department allows for the filing of belated returns until December 31, 2024. However, filing a belated return incurs penalties ranging from Rs 1,000 to Rs 5,000, depending on the taxpayer's income level. This extension provides an opportunity for late filers to comply with tax regulations while minimizing financial repercussions.The process of filing income tax returns for FY 2023-24 demands careful attention to deadlines, penalties, and compliance measures. By understanding these aspects and adhering to regulatory requirements, taxpayers can ensure a smooth and penalty-free tax filing experience. The Income Tax Department's efforts to simplify procedures and support taxpayers underscore the importance of proactive tax planning and timely compliance.
(With inputs from TOI)
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
(You can now subscribe to our Economic Times WhatsApp channel)
This story originally appeared on: India Times - Author:Faqs of Insurances
