ITR Filing 2024: What you need to know?

The last date for filing ITR (Income Tax Return) for the financial year 2023-24 is Wednesday, July 31, 2024. There are many benefits of ITR filings like if you file your ITR regularly it will help you build a strong credit history and you might also get quick loan approvals and better interest rates in future. To top it all, an ITR serves as a valuable proof of Income which will come handy while applying for loans and visas. 

Over the years, the Central Board of Direct Taxes (CBDT) has notified several changes in the income tax-related rule. If you are a taxpayer then you need to know the following changes in the ITR rules. 

Old vs New Tax Regime

A new tax regime kicked off from April 1, 2024. Under the new tax policy, the entire income will be tax-free if the taxable income is under Rs 7 lakh. However, you are given the liberty to file an ITR under the old or new tax regime whichever is beneficial to you. The finance ministry has also clarified that the new tax regime is the “default tax regime”. If the claim is submitted without any exemption or deduction then the new tax regime is beneficial. However, you have more benefits of various exemptions and deductions under the old tax regime.

Standard Deduction

A new standard deduction of Rs. 50,000 was recently introduced for salaried employees. This standard deduction is applicable only for pensioners. A deduction of Rs. 50,000 can be claimed by the employees under standard deduction to reduce their taxable income.  

Section 80C

The limits under Section 80C has been increased to Rs.1.5 lakh. If you invest in PPF, Sukanya Samriddhi, LIC, NSC, life insurance premium, you can get an exemption up to Rs. 1.5 lakh under 80C. While under 80D you can get tax deduction on family health insurance. The maximum premium for both is Rs.75,000. The principal amount of home loan and children's education fees can also be claimed under 80C. 

Home Loan

If you buy a house using a housing loan, you can claim an exemption on interest required to be paid on the housing loan under section 80EEA. It aims to promote additional deduction of up to Rs 2 lakh on home loan interest. The purpose of this exemption is to provide relief to taxpayers and promote affordable housing.

Miscellaneous info

The CBDT has made a few changes to the ITR form to include additional details. The taxpayers are now required to declare foreign assets and huge transactions. Taxpayers with foreign investments or significant financial transactions should provide detailed information to avoid penalty. Since, the Senior citizens above 75 years of age will have income only through pension and interest, they have been exempted from the obligation of filing an ITR.