Income Tax Return Filing: The normal income tax return filing deadline for AY 2024-25 ended on July 31, 2024. The deadline to file a belated ITR with a penalty amount of Rs 5,000 will end on December 31, 2024. Even after the July 31 deadline, the Income Tax Department gave different categories of taxpayers specific deadlines to furnish ITRs. For example, the tax department extended the ITR filing date for those requiring audit of their accounts from 31st October, 2024 to 15th November, 2024.
Here, we will talk about five key changes in income tax rules with respect to filing of tax returns by taxpayers.
Enhanced tax transparency with new Form 26AS
The introduction of the new Form 26AS provides comprehensive information to taxpayers, including details of tax deductions or collections at source, specified financial transactions (SFTs), payment of taxes, demands, and refunds. Additionally, the inclusion of SFT data ensures taxpayers are aware of their transactions in advance, encouraging accurate income disclosure.
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Simplifying compliance with pre-filled Income-tax Returns (ITRs)
To ease the tax filing process, pre-filled ITRs have been introduced for individual taxpayers. These forms now include details such as salary income, bank interest, dividends, and other essential financial data, reducing manual effort and enhancing accuracy in filing.
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Flexibility in filing with updated returns
Section 139(8A) of the Income-tax Act, 1961, allows taxpayers to file an updated return within two years of the relevant assessment year. This provision enables individuals to correct omissions or mistakes by voluntarily admitting them and paying additional applicable taxes. The e-verification scheme further facilitates the disclosure of unreported or under-reported income in the updated ITRs.
Simplified personal income-tax regime
The Finance Acts of 2020 and 2024 have introduced an alternative tax regime for individuals, offering lower slab rates for those who choose to forgo specified exemptions and incentives.
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