The government has extended the Income Tax Return (ITR) filing deadline from December 31 to January 15, 2025. Taxpayers can file their ITRs with late fees.
Income Tax: The government has granted taxpayers another opportunity to file their Income Tax Returns (ITR) after the original deadline of December 31. Taxpayers can now file their ITRs with late fees until January 15, 2025.
Opportunity to File ITR with Late Fees
If you haven't filed your ITR by December 31, you have until January 15, 2025. Late fees will be applicable. For taxpayers with income below ₹5 lakh, the late fee is ₹1,000. For those with income exceeding ₹5 lakh, the late fee is ₹5,000.
Which ITR Form Should You File?
ITR-1: This form is for individuals with an income up to ₹50 lakh, earning income from salary, house property, or interest.
ITR-2: This form is for individuals and HUFs (Hindu Undivided Families) with no business or professional income.
ITR-3: This form is for professionals and business owners with income from a business or profession.
ITR-4: This form is for individuals, HUFs, and firms with an income up to ₹50 lakh from business or profession.
ITR-5: This form is for entities registered as firms, LLPs, AOPs, or BOIs.
ITR-6: This form is for companies claiming exemptions under Section 11.
Government's New Initiative
The Indian government is considering tax cuts for individuals with income up to ₹15 lakh in the upcoming budget. This step is aimed at providing relief to the middle class and encouraging spending, as slower economic growth and inflation have created challenges for citizens.
Final Decision During the Budget in February
Sources indicate that the magnitude of tax cuts is yet to be decided, but the final decision will be made during the budget presentation on February 1. The expected outcome of tax rate reductions is a higher adoption rate of the new, simplified, and more beneficial tax system.
Benefits of Adopting the New System
A significant portion of India's income tax revenue is generated from individuals earning ₹1 crore or more, subject to a 30% tax rate. The government anticipates that tax reductions will motivate a wider range of taxpayers to utilize the new tax system.
