Last Date to Claim FY 2023-2024 Income Tax Refunds End Today! File Your ITRs Now or Never

The clock is ticking for taxpayers as the last date to claim Income Tax Refunds by filing Income Tax Returns (ITR) for the Financial Year (FY) 2023-2024 is today (15th January 2025).

If you still have not submitted your Income Tax Returns, now is the time to act. Below is a comprehensive guide highlighting the significance of filing your ITR, the necessary documents, and the filing process, along with some helpful tips to ensure accuracy and timeliness.

1. Why Filing Your ITR on Time Matters

a. Avoiding Penalties and Late Fees
The Indian Income Tax Department imposes penalties and late fees on taxpayers who fail to file their ITRs by the prescribed deadline. Even a short delay could invite a penalty of up to INR 5,000, alongside accumulating interest on any taxes owed. By filing your return on time, you save yourself from these added financial burdens.

b. Claiming Timely Refunds
One of the biggest perks of filing your ITR within the designated period is the ability to claim tax refunds without unnecessary delays. If you have paid excess tax through TDS (Tax Deducted at Source) or advance tax, failing to file your return before the deadline could result in losing the right to claim a refund, or at best, experience a significantly delayed payout.

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c. Maintaining a Clean Financial Record
An ITR is a legal proof of your income and tax payment. Timely filing ensures you have a transparent financial track record, which becomes extremely valuable when applying for loans, visas, or government tenders. Banks and other financial institutions often require the last two to three years of tax returns before sanctioning loans or credit facilities.

d. Carrying Forward Losses
If you have incurred any capital or business losses, you can carry them forward and set them off against future gains only if you file your tax returns on time. Missing the deadline could mean forfeiting this beneficial tax advantage.

2. Documents Required for Filing Your ITR

1. Form 16: For salaried individuals, this is the most essential document. It captures the breakup of your salary and any taxes deducted at source by your employer.
2. Form 26AS: This consolidated statement contains details of all tax deducted/collected on your behalf, advance tax payments, and refunds received, if any.
3. Investment Proofs: Gather all documents related to your investments, such as receipts for life insurance premiums, Public Provident Fund (PPF) contributions, ELSS (Equity-Linked Saving Schemes), National Pension System (NPS) contributions, and other Section 80C deductions.
4. Bank Statements: Consolidate your interest income from savings accounts, fixed deposits, and recurring deposits.
5. Home Loan Statements: If you have a home loan, you need the interest certificate from your lender. Interest on a home loan can be claimed under Section 24(b), and principal repayment can be claimed as a deduction under Section 80C.
6. Capital Gains Documents: If you have invested in mutual funds, shares, or property, prepare your transaction statements and other relevant records to calculate capital gains or losses.

3. Step-by-Step Guide to Filing Your ITR

1. Choose the Right ITR Form
    The Income Tax Department has different forms for various types of taxpayers (ITR-1, ITR-2, ITR-3, etc.). Identify the correct form that aligns with your income sources—salary, business income, capital gains, or a combination of these.
2. Register or Log in to the e-Filing Portal
    Visit the official Income Tax e-filing website (www.incometax.gov.in) to either register as a new user or log in if you already have an account. Ensure that your PAN (Permanent Account Number) is active.
3. Enter Your Personal and Income Details
    Fill in your personal information and relevant income details, including salary, house property income, capital gains, and other sources. Accurately reporting these figures is vital to avoid discrepancies or future notices from the tax authorities.
4. Claim Deductions
    Under Section 80C, 80D, 80E, and other relevant sections, claim deductions for eligible expenses and investments. This step helps lower your taxable income and increases the likelihood of a refund if excess tax has been paid.
5. Validate Your Details
    Use Form 26AS to cross-check the TDS and taxes paid during the financial year. Ensure that all figures match, and correct any mismatches promptly.
6. E-Verify Your Return
    After filing, you have to e-verify your return to complete the process. You can do this by using an Aadhaar-based OTP, net banking, or the Electronic Verification Code (EVC) from your bank account or Demat account. If you fail to e-verify within 120 days of filing, your return will be deemed invalid, so do not skip this step.

4. Tips for Error-Free and Timely Filing

• Start Early: Avoid waiting until the last moment. Filing your ITR in advance gives you ample time to collate documents, address errors, and re-check calculations.
• Seek Professional Help: If your financial situation is complex or if you are a first-time filer, consult a chartered accountant or a tax expert. Their insights can save you from making costly mistakes.
• Use Reliable Software: There are several trusted tax filing software tools that simplify the process by auto-fetching data from Form 26AS and calculating deductions accurately.
• Keep Records Organised: Maintaining a folder—physical or digital—with all relevant receipts, documents, and proofs throughout the year will ease your tax filing process.

5. Consequences of Missing the Deadline

• Hefty Penalties: Not filing your ITR on time can result in penalties of up to INR 5,000, as well as additional interest on taxes due.
• No Refund Eligibility: If you miss the last date, you risk losing your right to claim a refund altogether, translating to a direct financial setback.
• Scrutiny from Tax Authorities: Delayed returns or non-compliance may put you under the scanner of the Income Tax Department, leading to potential audits and notices.

Final Thoughts

With the last date to claim your income tax refunds for FY 2023-2024 just a day away, it is essential not to put off filing your ITR any longer.

Timely filing ensures that you can claim rightful refunds, avoid penalties, and present a clean financial history. Whether you are a salaried individual, a business owner, or a freelancer, the importance of an error-free tax return cannot be overstated.

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Take advantage of the resources provided by the Income Tax Department, and if necessary, seek professional assistance to make the process seamless. By acting now, you protect yourself from any last-minute hassles and secure your financial interests for the year ahead.

Don’t miss out on your opportunity to stay compliant and claim what is rightfully yours—file your ITR today!

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