The authorities has chosen the brand new tax regime because the default tax regime.
The Income Tax Department has set July 31 because the deadline for Income Tax Return submitting for the yr 2023-24.
March has ended, and with the revenue tax submitting season in full swing, people are busy making certain they meet their tax obligations. Amidst the hustle and bustle, it’s essential to do not forget that the deadline for submitting revenue tax returns is July 31. Missing this deadline can influence your capability to decide on between the outdated and new tax regimes.
The Income Tax Department has set July 31 because the deadline for submitting Income Tax Returns for the yr 2023-24. Filing earlier than this deadline permits taxpayers to pick out between the outdated and new tax regimes. However, failure to file by the deadline removes this selection.
But what precisely do the outdated and new tax regimes entail?
The new tax regime, launched within the Budget 2020, revised tax slabs and supplied taxpayers concessional charges. Opting for the brand new regime might imply foregoing sure exemptions and deductions, corresponding to House Rent Allowance (HRA), Leave Travel Allowance (LTA), and varied sections like 80C for investments and 80D for insurance coverage. In distinction, the outdated tax regime gives over 70 exemptions and deductions, together with HRA and LTA, which may considerably scale back taxable revenue and decrease tax funds. Notably, the generally used deduction underneath part 80C permits a discount of taxable revenue by as much as Rs 1.5 lakh.
What occurs in case you don’t select a tax regime?
The authorities applies the brand new tax regime by default if no choice is made. Consequently, taxpayers forfeit the advantages of exemptions and deductions out there underneath the outdated regime. To avail of exemptions on loans, investments, or different allowances, it’s advisable to file the ITR earlier than the July 31 deadline.
And what in case you miss the deadline?
Taxpayers lacking the July 31 deadline for the yr 2023-24 can file a belated ITR from August 1 to December 31. However, penalties will apply, and the choice to decide on the outdated tax regime will not be out there. Tax liabilities will probably be calculated primarily based on the brand new tax regime.
By adhering to the deadline and submitting taxes on time, people could make knowledgeable choices relating to their tax regime, making certain optimum tax planning and compliance.
