ITR 2024: Why you should file your Income Tax Return (ITR) before July 31, 2024 – Five key reasons

The last date for filing your Income Tax Return (ITR) for FY 2023-24 is Wednesday, July 31. Regular ITR filing establishes a positive credit record, which can lead to faster loan approvals and lower interest rates. It is mandatory to file an ITR even when tax is deducted at source. The benefits for filing an early ITR are as follows:

1. Minimises the chance of errors: Early ITR filing gives you ample amount of time to compile all the information you need, and ensures that your tax return is accurate. The documents you need include Aadhaar, PAN card, Form 16, salary slips, interest certificates from banks or post offices, tax saving investment proofs and receipts of health insurance.

2. More time to rectify errors: Income Tax Department recommends to verify your ITR within 30 days of filing it. It gives you ample time to verify your return and correct any errors if needed. You can e-verify your return online using OTP on mobile number registered with Aadhaar or net-banking.

3. Avoid penalty on late filing of ITR: If you miss to file your ITR by the due date, then a penalty would be levied. The maximum penalty of ₹5,000 will be levied for those with an annual income of more than ₹5 lakh and it might go up to ₹10,000 if the return is filed after December 31, 2024. However, you don’t have to pay any penalty even when you file your return late provided that your income is below the taxable amount.

4. Quicker refunds of income tax: If you have paid tax that is excess in proportion to your income, then the additional amount will be refunded to you. The refund process would be initiated as soon as the ITR is filed.

5. Evade income tax notices: Filing your ITR by the due date is required to avoid notices from the Income Tax Department. The late-filing of tax returns leads to inconveniences, apart from monetary penalty.