The federal government has chosen the brand new tax regime because the default tax regime.
The Earnings Tax Division has set July 31 because the deadline for Earnings 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 keep in mind that the deadline for submitting revenue tax returns is July 31. Lacking this deadline can affect your capability to decide on between the outdated and new tax regimes.
The Earnings Tax Division has set July 31 because the deadline for submitting Earnings Tax Returns for the yr 2023-24. Submitting earlier than this deadline permits taxpayers to pick out between the outdated and new tax regimes. Nonetheless, failure to file by the deadline removes this alternative.
However what precisely do the outdated and new tax regimes entail?
The brand new tax regime, launched within the Price range 2020, revised tax slabs and provided taxpayers concessional charges. Choosing the brand new regime might imply foregoing sure exemptions and deductions, reminiscent of Home Hire Allowance (HRA), Depart Journey Allowance (LTA), and varied sections like 80C for investments and 80D for insurance coverage. In distinction, the outdated tax regime provides over 70 exemptions and deductions, together with HRA and LTA, which might considerably cut back taxable revenue and decrease tax funds. Notably, the generally used deduction beneath part 80C permits a discount of taxable revenue by as much as Rs 1.5 lakh.
What occurs in the event you don’t select a tax regime?
The federal government applies the brand new tax regime by default if no choice is made. Consequently, taxpayers forfeit the advantages of exemptions and deductions accessible beneath the outdated regime.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 the event 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. Nonetheless, penalties will apply, and the choice to decide on the outdated tax regime will not be accessible. Tax liabilities can be calculated primarily based on the brand new tax regime.
By adhering to the deadline and submitting taxes on time, people could make knowledgeable selections concerning their tax regime, making certain optimum tax planning and compliance.
