The deadline to file Income Tax Returns (ITR) for the Financial Year (FY) 2023-24 or Assessment Year (AY) 2024-25 without incurring a late fee is July 31, 2024. It’s important to note that this deadline applies to income earned during FY 2023-24 until March 31, 2024, and for those incomes that do not require an audit.
However, if an income requires a tax audit report, the deadline for filing is October 31, 2024. In case an individual misses the July 31 deadline, they can still file a late return for the same financial year before December 31, 2024, but penalties will apply. FY 2023-24 refers to the period between April 1, 2023, and March 31, 2024.
Similarly, AY 2024-25 is the year in which an individual files their ITR and declares their investments for tax assessment. Here are some tips on how individuals can save income tax by filing their ITR under the old tax regime:
Public Provident Fund (PPF): PPF is a government-backed investment tool. Under Section 80C of the Income Tax Act (ITA), 1961, individuals can claim tax exemptions for PPF investments up to Rs 1.5 lakh. Additionally, interest earned and maturity amount are tax-exempt.
National Pension System (NPS) account: NPS offers tax benefits as a long-term retirement scheme. Contributions made by a salaried employee, up to 10% of basic salary and Dearness Allowance (DA), are eligible for tax benefits under Section 80CCD (1) of the ITA.
Section 80TTA of the ITA: Tax exemption on interest up to Rs 10,000 can be received on amounts deposited in savings accounts alone. This exemption does not apply to amounts deposited in Fixed Deposits (FDs) or Recurring Deposits (RDs).
Rebate on Home Loan Interest: Individuals can claim a tax exemption on the interest component of the equated monthly installment (EMI) paid to the bank. Up to Rs 2,00,000 of this interest is tax-exempt.
Health Insurance Exemption: Individuals below the age of 60 years paying for health insurance for themselves, spouses, and children are eligible for an income tax exemption of up to Rs 25,000 under Section 80D of the ITA. An additional rebate of up to Rs 50,000 is available if parents are above 60 years of age and the individual is paying premiums for them.
Section 80DD Rebate: Individuals can claim income tax exemption on expenses incurred for dependents with disabilities under Section 80DD of the ITA.
Section 80DDB Exemption: Tax exemption is provided for expenses incurred in treating specific diseases of dependents, including dementia, Parkinson’s, cancer, AIDS, renal failure, hemophilia, and thalassemia.
By utilizing these tax-saving tips, individuals can effectively manage their tax liabilities and maximize their savings. It’s essential to understand these provisions and consult with a tax advisor if necessary to ensure compliance with tax regulations.
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