July 31 is the last day to file ITR; here's what you need to know

The most crucial date for all taxpayers has arrived, i.e. July 31, the deadline to file your income tax return.

Will the ITR filing deadline be extended?

Despite all the rumours and speculation, the Income Tax Department has maintained that the deadline for filing ITR remains July 31 for the financial year 2023-24. The IT department has urged taxpayers to file their returns on time to avoid penalties and to be eligible for timely ITR refunds.

About 6 crore income tax returns have been filed for income earned in 2023-24, of which 70% were filed under the new simplified tax regime, which offers a lower rate of tax, Revenue Secretary Sanjay Malhotra said on July 30.

"About 6 crore filed for last year, and 70% is under the new income tax regime. The whole move has been towards simplicity with the ultimate purpose being to reduce the compliance burden," Malhotra said.

Who can file after the July 31 deadline?

The IT department offers three extra months for individuals and businesses that need auditing to complete their audits and file ITR. The deadline for them is October 31, 2024. Businesses involved in international transactions that require detailed analysis for transfer pricing are given an extended deadline of November 30 for filing their ITRs. Businesses engaged in specific domestic transactions that require reporting and compliance formalities may also qualify for an extended deadline to file their ITRs.

To be eligible for these extensions, individuals have to rely on various sections of the Income Tax Act. Even then, late fees and penalties are applicable in some cases.

Last-minute mistakes to avoid while filing ITR

Filling inaccurate personal information: Make sure you check all personal information like name, PAN, address, etc., carefully as any discrepancy could lead to delays in processing, and hassles like rejections and the need for refiling.

Selecting the wrong ITR form: Pay attention to the form you’re choosing. Each form is designed for specific taxpayer categories based on their sources of income. Filing the wrong form may lead to rejection or require resubmission.

Not reporting all income sources: Reporting all income sources carefully is very crucial while filing your return. This can include interest from savings accounts, fixed deposits, rental income, or any other sources.

Neglecting to check Form 26 AS: Ensure that you check Form 26 AS, which shows all the taxes deducted and paid against your PAN. Many people make the mistake of overlooking this form, leading to discrepancies between their reported income and actual TDS.

Making errors in deductions and exemptions: If you claim incorrect or insufficient deductions and exemptions, it could lead to lower refunds and tax liabilities. Make sure you read about all the deductions available under various sections like 80C, 80D, and many others.

Forgetting to verify your ITR: It is extremely important to remember that your return filing process isn’t complete until you verify the ITR. You can verify it online using methods such as Aadhaar OTP, net banking, or by sending a signed hard copy to the Centralised Processing Center (CPC) office.