Essential tips and guidelines for Income Tax Return filing

For Financial Year 2023-24 and Assessment Year 2024-25, the deadline to file ITR is July 31, 2024, and taxpayers can choose either the old or new tax regime

- MONIKA YADAV

AS the deadline for filing income tax returns on July 31 is approaching, it's essential for individual taxpayers to submit their ITR in advance to avoid last-minute rush. Filing your Income Tax Return (ITR) is essential for several reasons. It ensures compliance with the law, helping you avoid penalties for late submission.

By filing on time, you can claim any eligible tax refunds while also providing important financial documentation for loans or other transactions. Additionally, regular filing builds a strong financial history, which can be beneficial in the long term.

It is to be noted that under the new tax regime, individuals with a net taxable income of up to ₹7 lakh are eligible for a tax rebate under section 87A. For those opting to pay taxes under the old regime, the rebate limit remains at ₹5 lakh.

Importance of filing ITR

In case an individual has no taxable income or when her total income is below the taxable threshold set by the government, even then she should file a Nil Return. It is important to file such a return to fulfil the legal requirement of submitting an ITR and to maintain a record with the tax authorities, even if no tax is payable. Filing a Nil Return ensures compliance with tax regulations and helps in documenting your financial status for that particular financial year.