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EVEN THOUGH ALL THE NON-PROFIT ORGANIZATIONS ENJOY TAX EMPTION THEY HAVE TO FILE INCOME TAX RETURNS. THE PROCESS AIMS TO MAKE SURE THAT THESE ORGANIZATIONS STAY OPEN AND HONEST, WHILE ALSO KEEPING THEIR 12A AND 80G REGISTRATIONS VALID.
What is the last date to file an Income Tax Return for 2024?
The last date for filing a return of income for the year 2024 will strictly depend on U.S. tax norms and the existing factors thereof.
1. Period of Assessment and Due Date for Filing Returns: In the United States, the assessment period covers the period in between the 1st of January and the 31st of December. Tax returns will be filed in 2025 for the income received during the year 2024. The standard deadline for individuals filing IRS tax returns is every 15th day of April of the subsequent year.
2. Adhering to Holidays: The deadline is also altered in cases where the 15th of April comes on a weekend or a public holiday within that period. For example, if April 15, 2025, is a Saturday or a Sunday, no return would be due until the following Monday, April 17, 2025.
3. Filing Extensions: Taxpayers are also permitted to file their tax returns after the notified tax deadline. Ample time will be to October 15 in the same year (in this particular case, within the year 2025). Nevertheless, it is paramount to note that an extension is only applicable to the time for filing the forms and does not apply to the time within which tax payable, if any, should be paid.
Conclusion: Given these parameters:
The last date to file for income tax returns for income earned in 2024 would be on the 15th of April 2025 unless this date is a weekend or public holiday. If this is the case, then the last date would be on 17th April 2025.
What happens if I don't file ITR?
The same year, after which you may have to pay a fee and will not be able to file your return for that assessment year any more.
Filing your income tax return on time is very important. However, sometimes situations may arise that may compel you to delay filing your return. In such scenarios, know that below are some of the important penalties that may apply for not filing an income tax return in time.
1. In disciplinary action or any other similar consequence: In some instances of obtaining a late filing penalty, the Internal Revenue Service may warn you about further action and revoke the penalty. Depending upon the tax year, unwarranted behavior within the General Appropriation Act will subject the taxpayer to sanctions and a penalty of twenty-five percent of the amount owed, respectively.
2. Overdue Payment Interest: This is in addition to the penalties that are imposed and charged to you, which are any taxes that were not paid by the tax return date. Stage 2 of chapter 1, section 1, paragraph 3 (b) of the Tax Code gives an example of the procedure for charging the bank and the rate. For example, if a taxpayer has 200,000 rupees of tax liabilities and files a return eight months after the due date, interest shall accrue in the amount of 16,000 rupees.
3. The Benefits of Carrying Forward Such Losses Will Be Lost: If you had business losses or capital losses for the financial year and are unable to file the return, then in such a case you will not be able to carry forward such losses to adjust with profits arising in the next financial year. This means that the tax that is due next might increase.
4. Adverse consequences of the law: When there is a quite serious situation and the tax deficit is equal to or more than twenty-five thousand rupees and you totally neglect filing your tax return, there may be imprisonment terms ranging from six months to seven years or any other penalties.
5. Challenges with Loan and Visa Applications: Failing to submit your income tax return may also create difficulties in obtaining a loan or a visa, as many banks and embassies request them for tax compliance purposes.
6. Reduced Choices for Return Submission: In case you are unable to submit your return on or before the return due date (which is normally July for individuals), there exists a provision for submitting a late return on or before December 31 of that assessment year or even on or before the conclusion of the assessment. This, however, is subject to penalties and may preclude certain reliefs, such as loss carry forwards.
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How much penalty for late ITR filing?
There are consequences for filing ITR beyond the given timeframe. Here is a simple framework for understanding the provisioning of such consequence:
Filing Date Limit: In general, the final day to file the ITR is the 31st day of July of the assessment year. If that date is over, one can still file the return, although it will be termed an outside-the-period return.
Late Filing Fine: If an individual delays in providing the ITR for the appropriate tax assessment period and that happens prior to the 31st day of December of the same year, a late filing fine under Section 234F will be incurred:
For instance, in case the individual's gross receipts range above Rs. 5 lakhs, then it
will attract a penalty of Rs. 5,000. If the gross receipts are below Rs. 5 Lakhs, then the penalty will be Rs. 1,000 only.
Late Payment Interest: Apart from the late ITR filing fees, it does not matter if a tax debtor has an outstanding tax amount and has missed the payment date because an interest fee of 1% per month will be added in every month on the tax amount that has not been paid until the tax is paid in full.
The Risks of Falling to Meet the Deadline: Specifically, if you have not submitted an income tax return by December 31, you will not be allowed to carry forward certain losses to future years (other than losses from house property), and still other fines will be imposed.
To wrap it up, in case of a delay in filing your ITR:
- You may be liable to pay a penalty totaling Rs 5,000. However, this limit drops to Rs 1,000 where your total income is less than Rs 5 lakhs.
- There shall be penalties with regard to the unpaid taxes as well.
What documents do I need to file my tax return?
Papers are necessary to be prepared so that one can ease the process of filing the tax return. Below is a simple outline of everything that is required.
1. Personal Information
The full name, date of birth, and the individual’s social security number or the taxpayer ID number. In this case, if the individual is married and filing jointly, then this information is required for the other spouse too.
2. Income Documents
W-2 Forms: These are provided by the employer and contain the total earnings and tax withheld of an employee.
1099 Forms: These forms are provided if an individual has done outside company work or has received some other income, such as from a bank interest. The common forms would include:
- 1099-MISC: for miscellaneous incomes
- 1099-NEC: non-employee compensations
- 1099-INT: interest incomes
- 1099-DIV: dividends that come from investment activities
Other income records may include income from rentals and unemployment pay as well.
3. Bank Information
This is the bank account number and routing numbers, which will be needed in order for one’s tax refund to be directly deposited into their account. This is the fastest way of getting the money back.
4. Health Insurance Information
In case you bought health insurance through the exchange, you’ll want to include Form 1095-A in your tax returns because you will have to account for that health insurance.
5. Child Tax Credit Information
If you got advance payments to claim the Child Tax Credit, do not forget to have Letter 6419 since it explains how to adjust the payments during the returns filing.
6. Economic Impact Payment Information
If you were paid any stimulus payments, you would have Letter 6475 so that you can analyze how much more credits you are entitled to, if any.
7. Deduction Documents
In the event that such expenses are to be claimed for deduction to lower the taxable income, the following and other documents should be availed.
- Form 1098: For interest on the mortgage paid.
- Form 1098-E: In relation to the interest for the student loan paid.
- Proofs for donations made for charities or medical claims.
You will make sure that all the necessary paperwork is accounted for and is in order even before commencing the process of filing your tax returns, thereby eliminating bottlenecks in returning the filed tax returns to the taxpayers.
So to cut it short, here is what you need:
- Identification and personal data (i.e., name, social security number).
- Records on income (W-2s, 1099s).
- Information on bank accounts.
- Any data on medical cover (if necessary).
Who is eligible for ITR filing?
In order to determine who can file the Income Tax Return (ITR) form, it is vital to consider many other aspects, such as the kinds of income, the total earnings, and the residency of the individual, among others. Here is a simple summary.
1. Residents:
A person shall apply as a resident individual if he/she resides in India for the requisite period during the relevant previous year.
2. Restriction on Income:
Your gross income must be limited to fifty lakhs within the relevant financial year. If this limit is exceeded, you will not be able to file the optional ITR-1 version.
3. Permissible Types of Income.
ITR-1 can only be filed when a taxpayer has income that includes:
- Salary
- One house property
- Family pension
- Agricultural income (not exceeding ₹ 5000)
- Other incomes, like interest on savings, fixed deposits, etc.
4. Income Of Spouse Or Minor Child
If you earn an income from your spouse or a minor child, that income may be added to your income, provided that the limits allow.
5. ITR-1 cannot be filed by
Certain persons cannot file ITR-1. These include:
- Persons who are non-residents or residents not ordinarily residents (RNOR) status
- Persons who have agricultural income of more than ₹5000
- Persons who are engaged in any other business profession
- Persons who have capital gains or winnings from a lottery
In conclusion, the above illustrates the requirements and restrictions of filing ITR-1 for individuals with a range of total income sources, which shall not exceed ₹50 lakh and will be limited to sources like salary or interest, and you must be a resident individual.
