Income Tax Return Filing Made Simple

Filing Income Tax Returns is a legal requirement for individuals whose gross income in the previous year exceeds the exempt limit under the IT Act of 1961. To simplify this process, the Income Tax Department has introduced an easy online method for filing returns. This electronic process, known as Online ITR Filing, allows taxpayers to file their returns securely via the Internet.

Electronic filing provides taxpayers with the convenience of filing at any time and from anywhere. Available 24/7, this service allows submissions globally, reducing the need for in-person interactions between taxpayers and tax authorities.

Yes, you can still upload your Income Tax Return after the deadline. However, late filings may incur a penalty.

To claim a refund for excess taxes paid, you must file an income tax return, even if your income is not taxable. Once processed, the refund will be directly credited to the account specified in your ITR form.

You can check the status of your ITR on the official Tax Authority of India’s website using your PAN and password. Cloud Tax CA is the best platform for learning about Online ITR Filing, offering expert assistance to help you track your progress.

The tax slabs and rates are different in old and new tax regimes. Various deductions and exemptions are allowed in Old tax regime. The new regime offers lower rates of taxes but permits limited deductions and exemptions.

The option to choose between two regimes may vary from person to person. It is advisable to do a comparative evaluation and analysis under both regimes and then choose as per requirement. Taxpayers can broadly estimate and compare tax liability under the new and the old tax regime using Income and Tax Calculator on the Income Tax Portal.

Yes, the employee has to intimate the employer regarding his intended tax regime during the year. If the employee does not make an intimation, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Thus, the employer shall deduct tax in accordance with the rates provided under section 115BAC.

However, the intimation made to the employer would not amount to exercising the option in sub- section (6) of section 115BAC for opting out of the new tax regime. The employee shall be required to do so separately before the due date specified under section 139(1) for filing of return of income.

Under the old tax regime, House Rent Allowance (HRA) is exempted under section 10(13A) for salaried individuals. However, this exemption is not available in the new tax regime.

Yes, Standard deduction of Rs.50,000 or the amount of salary, whichever is lower, is available for both old and new tax regimes from AY 2024-25 onwards.

In the new tax regime, “Interest on borrowed capital for Self-occupied property” is not allowed as a deduction from Income from House property as per the provision of Section 115BAC of the Act, 1961. In case, the Taxpayer wants to claim deduction of interest on borrowed capital for SOP, then taxpayer must choose ‘Old Tax Regime’ by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” option in ITR 3 / ITR 4 / ITR 5 in the field provided for “opting out option” in the ITR Form.

In the old tax regime , the basic exemption limit for senior citizens is Rs. 3,00,000/- and for super senior citizens, it is Rs. 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of Rs. 7 lakh.

Under the New Tax Regime (w.e.f. 01-04-2024):

A resident individual opting for the new regime under Section 115BAC(1A) is eligible for the following rebates under Section 87A:

(a) If the total income is up to ₹7,00,000, a 100% rebate on income tax is available up to ₹25,000, meaning no tax is payable for income up to ₹7,00,000.

(b) If the total income exceeds ₹7,00,000, and the tax payable is more than the amount by which income exceeds ₹7,00,000, then the rebate will equal the difference.
This ensures that a marginal increase in income just above ₹7,00,000 does not result in a disproportionately higher tax liability.

Please note that new tax regime is default regime for AY 2024-25. Any actions in any previous years with respect to choice of regimes will not be applicable from AY 2024-25. You are required to submit Form 10-IEA again in case you want to opt for the old regime.

Once Form 10IEA is filed for AY 2024-25, then it cannot be revoked / withdrawn in same AY. If you wish to re-enter into new tax regime then you can file Form 10IEA for withdrawal option in the next assessment year. Again it is emphasised that that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of IT Act.

Form 10-IEA is applicable to AOP’s (other than Co-operative society) or BOI or AJP, who are filing return of Income in ITR-5 for AY 2024-25.

Form 10-IFA is applicable to new manufacturing co-operative Societies resident in India filing ITR 5, if they wish to avail New Tax Regime under Section 115BAE for AY 2024-25.