Income Tax News: The deadline for filing Income Tax Returns (ITR) is now less than a month away. Many taxpayers have already submitted their ITRs. It is important to note that the last date for filing ITR is July 31, 2024. Tax experts suggest filing the ITR as early as possible. The biggest advantage of filing early is that if you are due for a refund, it will be processed and credited to you sooner.
Taxpayers have the option to file their ITR under the New Tax Regime or the Old Tax Regime. However, many taxpayers are wondering whether they can choose the Old Tax Regime after July 31. Let us provide some clarity on this matter.
Choosing the Old Tax Regime After July 31
The last date for filing ITR is July 31, 2024. The New Tax Regime was introduced in 2020, giving taxpayers two options for filing their ITR: the New Tax Regime and the Old Tax Regime. However, taxpayers will not have the option to choose the Old Tax Regime after July 31. This means that the New Tax Regime will be applied by default after this date. If taxpayers file their ITR after July 31, the New Tax Regime will be automatically selected. It is important to note that the Old Tax Regime offers several exemptions, including Section 80C, standard deduction, HRA and others.
Benefits of Filing ITR on Time
Experts believe that filing the ITR on time offers various tax benefits. Additionally, taxpayers who are eligible for a refund should file their ITR as soon as possible. Nowadays, ITRs are processed quickly, and refunds are issued promptly. Furthermore, if taxpayers make any mistakes while filing their ITR, they have ample time to correct them. On the other hand, if a taxpayer files their ITR after July 31, they may face heavy penalties imposed by the Income Tax Department. This means taxpayers could be required to pay substantial fines for late filing.
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