Last Date for Filing ITR: New Budgetary Developments and Updated TDS Forms
Updated: Jun 25
The F.Y. 2023-2024 has brought some very important changes with it, making the preparation and filing of ITRs challenging. Right from new tax-relief measures to adjusted TDS rates and updated filing procedures, staying informed and taking the right action at the right time has become more crucial than ever. This article will take you through all the key updates, such as a last date for filing your ITR and how these new budgetary developments, along with the revisions in TDS forms, might affect your tax filing. Whether it's your first time or not in taxes, understanding such changes will only help in making your tax filing as easy as possible. Let's get into the details so that you can be prepared for the tax season.
Table of Content
Last Date for Filing ITR: Key Dates for ITR Filing of F.Y. 2023-2024
The ITR filing last date for F.Y. 2023-2024 (A.Y. 2024-2025) is an important deadline framed by the Income Tax Department till which a taxpayer should file the income tax returns (ITR) relating to income earned in the previous financial year. These deadlines are pretty important; meeting these deadlines keeps a person free from heavy penalties, late-payment interest, and makes a person comply with the tax laws. The timely filing of ITR will ensure faster processing of refunds, if due, and will avoid last minute glitches that arise because of overload on the income tax server.
The deadlines are different for F.Y. 2023-2024 based on the categories of taxpayers.
Following table outlines the last date for filing ITR for the F.Y. 2023-2024:
Last Date for Filing ITR: New Budgetary Developments Impacting ITR Filing
The Indian Budget of 2023 brought a lot of changes in the regulations of TDS and tax rate adjustments for the F.Y. 2023-2024. These modifications are targeted at smoothening tax administration, enhancing compliance, and providing relief to income taxpayers. The summary of these updates are as follows:
TDS provisions modifications
Section 194A (Interest other than Interest on Securities): TDS on interest from bank deposits or from the post office has its threshold changed to INR 50,000 in the case of senior citizens and to INR 40,000 in other cases.
Insertion of new section 194BA: TDS on Winnings from Online Games: Introduction of a new section 194BA in the Act which is specifically targeted at online gaming. The aforesaid section requires TDS on net winnings in the user's account at the end of the previous year or at the time of withdrawal, whichever is earlier.
Amendments to Section 194B: Winnings from Lotteries and Games: The threshold of TDS on winnings from lotteries, crossword puzzles, and other such games is INR 10,000. The provisions of the said section now extends to total winnings accrued during the financial year.
Section 194C: Payment to Contractors and Sub-contractors: The rate of TDS is 1% for payments to individual/HUF contractors and 2% for others, with the threshold for a single transaction set at INR 30,000 and an aggregate of transactions at INR 1,00,000.
Section 194Q: Purchase of Goods: Introduced in the earlier amendment, this section enjoins a TDS of 0.1% on the purchase of goods of more than INR 50 lakh in total value.
Section 194R: Benefits or Perquisites of Business or Profession: Where the value of the benefits or perquisites provided in the course of business exceeds INR 20,000, a TDS of 10% applies.
Section 194S: Transfer of Virtual Digital Assets: A TDS of 1% on transactions in virtual digital assets has been introduced to suit a developing financial world where digital currencies and digital assets have found space.
Changes in Tax Rates
Revision in Tax Slabs: The budget presented revised tax slabs under the new tax regime, with the aim of giving most significant relief to the middle-class taxpayers. This includes increasing the basic exemption limit and reducing slab rates to lower the burden of taxes on people.
Standard Deduction and Rebate: A standard deduction was reintroduced for salaried employees and pensioners under the new tax regime. On the other hand, the tax rebate under Section 87A has been enhanced so that persons having an income of up to INR 7 lakh will pay no tax under the new regime.
Updated TDS Forms and their Implications
The budgetary changes introduced various changes in TDS forms for making tax collections easier and ensuring effective compliance with the updated provisions of income tax. The changes include modifications in existing forms and introduction of new forms to capture different types of income or transactions brought under the ambit of provisions of TDS by recent budget amendments.
Detailed Explanation of each Relevant Form and its Purpose
Form 26Q: Payment for Contractual And Professional Services: This form is used for declaration of TDS for payments other than salary, like payment to contractors and professionals. The recent updates ask for more detailed reporting, and greater compliance under the lowered thresholds and revised rates for compliance.
Form 16: Salary: Form 16 would be a certificate issued by the employer mentioning therein the amount of TDS deducted from the salary. The form now includes provisions for standard deductions and exemptions under the new tax regime, which are to be very accurately reported.
Form 16A: TDS on Non-salary Payments: Form 16A is used for TDS on non-salary payments like interest or rent. This form now requires more detailed information to align with newly introduced sections like 194Q for the purchase of goods exceeding certain thresholds.
Form 26AS: Tax Credit Statement: It is a comprehensive statement which records all the TDS credits against the PAN of the taxpayer. The changes are introduced to incorporate all new TDS sections and rates to help taxpayers check their tax credit properly.
Form 27Q: Payments to Non-Residents: Type of payment made to non-residents, wherein the details are furnished based on the updated rates and limits, under sections like Section 195, which deals with various kinds of income payable to non-residents.
Last Date for Filing ITR: How to Use Technology for Effective Tax Filing?
Tools and Software that can Assist in Efficient Tax Calculation and Filing
Following tools can be used for effective tax calculation and filing:
Tax Preparation Software: The tax preparation softwares offers comprehensive products that provide complete solutions for calculating and filing taxes. These tools are regularly updated with new tax laws and regulations.
Accounting Software: Apart from day-to-day financial management, for businesses and professionals, accounting software helps in tax calculations, deductions, and even the direct filing of taxes.
Mobile Apps: Most of the tax filing service providers also have mobile apps so that one can manage everything from wherever they are. These apps can scan any document, notify about the deductions, and even submit tax returns directly from the device.
Cloud-Based Solutions: Cloud platforms integrate data from diverse sources and allow access to real-time financial information. This comes handy, especially with real-time tax reporting, for making it easy for businesses to consolidate data.
Advantages of e-Filing of ITR through Online Portals
Convenience: Online filing platforms such as TaxBuddy offers convenience of filing from anywhere and at any time, totally eliminating the need to file at a tax office or through the mail.
Accuracy: Auto-calculations give fewer errors. Most online tools check for common mistakes before submission, in effect enabling taxpayers to avoid potential penalties for misreporting.
Faster Processing: Submitting electronically means having a faster turn-around time, leading to faster tax refunds compared with paper filing.
Historical Data Availability: All online services keep prior years' tax returns on file, so it's easy to get information or see changes in the finances over time.
Built-In Tools: Most online platforms incorporate planning tools and deduction trackers, along with offering direct deposit for refunds that make the tax management very smooth.
Last Date for Filing ITR: Common Mistakes to Avoid in ITR Filing for F.Y. 2023-2024
Common Mistakes Done by the Taxpayers
Incorrect Personal Details: Small mistakes like wrong spelling in the name or wrong PAN details may lead to the rejection of the ITR.
Underreporting Income: Due to incomplete reporting of income, even the interest earned on savings bank account and fixed deposit can end up penalizing taxpayers.
Mismatch in TDS Claims: The TDS claims against the amount that is reported in the Form 26AS get mismatched many times.
Ineligible Deductions: Overstating deductions or claiming deductions that one is not eligible for may result in scrutiny or notice from the tax authorities.
Inaccurate Bank Details: Inaccurate bank account numbers cause delays, or, may result in non-deposit of refunds.
Filing Late: Late filing may result in additional fees and interest on the tax due.
How can these mistakes be rectified before submission?
Recheck all Information: Check all personal information, income details, deductions claimed, and credit claimed before submitting.
Verify with Form 26AS: Ensure that TDS/advance tax paid is properly reflected and reconcile it with Form 26AS.
Avail Online Tax Calculators: Use online tax calculators to determine the taxable income and tax correctly.
Explain the Deductions: In case of confusion, whether any particular expense is a deduction or not, connect the tax expert.
Preview ITR Form: Most of the online tax filing portals provide a facility to preview your ITR. Thereafter, scan through the ITR for last-minute errors.
FAQ
Q1. What is the last date of filing ITR for FY 2023-2024?
The deadline to file an ITR is usually the 31st July of the assessment year unless further extended by the government. Always check the official website of the Income Tax Department for any extensions or changes.
Q2. How have the rates of TDS changed in the new budget?
TDS rates and limits change under the new budget for different sections, with higher TDS for non-filers and rate adjustments in particular incomes such as dividends or interest from securities.
Q3. How has the standard deduction for salaried employees been modified in the new regime?
The latest budget has restored the standard deduction for salaried employees and pensioners under the new tax regime to provide tax relief through the reduction of taxable income.
Q4. Has the new budget changed any rates for individual taxpayers?
The budget revised the tax slabs under the new regime and is intended against relieving additional taxes from middle-class taxpayers.
Q5. How can I access the new form for TDS?
Always download forms only from the official website of Income Tax Department or undertaken tax filing websites, assuredly using the latest version.
Q6. What should I check before submitting my ITR?
The accuracy of personal information, income details, TDS credits as per Form 26AS, deductions claimed, and whether you are filing the correct ITR form according to your income type.
Q7. How does new TDS sections impact the freelancers and contractors?
Freelancers and contractors need to be aware of changes in sections like 194J and 194C, which provide the TDS rates applicable on their professional fees and payments, respectively.
Q8. Can I rectify errors in my ITR after submission?
Yes, the IT Department allows rectifications through a revised return, which can be filed for correcting mistakes in the originally filed return within a specified timeframe.
Q9. Where can I get professional help to file my ITR?
You can reach out to a certified tax preparer or a Chartered Accountant or use an online tax filing platform such as TaxBuddy.
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