As the income tax return (ITR) filing deadline of July 31, 2024, approaches, the Income Tax Department has issued a stern warning to taxpayers. The department has emphasized the importance of filing accurate ITRs to ensure timely processing and issuance of refunds. Taxpayers are urged to refrain from making bogus claims for expenses, under-reporting their earnings, or exaggerating deductions, as these actions are considered punishable offences.

According to the Central Board of Direct Taxes (CBDT), more than five crore ITRs have been filed as of July 26, with over 28 lakh ITRs filed on July 26 alone. This surge in filings indicates a heightened awareness among taxpayers, but the department stresses the need for accuracy.

Importance of Accurate ITR Filing

The IT Department has highlighted that refund claims are subject to verification checks, which may cause delays if discrepancies are found. Filing an accurate ITR leads to quicker processing of refunds, while any discrepancies will prompt a request for a revised return from the taxpayer. The department's directive reads, "Accurate filing of ITR leads to quicker processing of refunds. Any discrepancies in the claims made will prompt a request for a revised return (to be filed by the taxpayer)."

Additionally, taxpayers have been warned against making incorrect Tax Deducted at Source (TDS) amount claims. Filing false or bogus claims is a punishable offence, and taxpayers should ensure that their claims are legitimate and well-documented.

Also Read : How to Make Your Rs 10 Lakh Income Tax-Free: Choose the Right Tax Regime Before July 31, 2024

Deadline and Penalties for Late Filing

The last date to file the ITR for the financial year 2023-24 is July 31, 2024. After this date, ITRs can still be filed until December 31, but with a penalty. For individuals with a net taxable income of more than Rs 5 lakh, filing a belated return may attract a penalty of up to Rs 5,000. However, for those with an annual income of Rs 5 lakh and less, the maximum penalty for filing a belated ITR is limited to Rs 1,000.

Surge in ITR Filings Under the New Tax Regime

The CBDT Chairman Ravi Agrawal noted that more than 66 per cent of ITR filings this year were under the new tax regime, which the government is promoting to simplify the direct tax system. The new tax regime offers lower tax rates but does not allow for the variety of deductions available under the old tax regime. This shift indicates a growing preference among taxpayers for the simplified tax structure.

Key Points for Accurate ITR Filing

Accurate Reporting: Ensure all income and deductions are reported accurately to avoid discrepancies and potential penalties.

Verify TDS Claims: Cross-check TDS amounts with official records to ensure claims are correct.

Meet Deadlines: File your ITR by July 31, 2024, to avoid penalties and ensure timely processing of refunds.

Conclusion

The Income Tax Department's warning against bogus claims and under-reporting highlights the importance of filing accurate ITRs. With the deadline approaching, taxpayers must ensure their filings are precise to avoid delays in refunds and potential penalties. The surge in filings under the new tax regime also indicates a shift towards a simpler tax system, emphasizing the need for compliance and accuracy in tax reporting.

For a smooth and timely tax filing experience, adhere to the guidelines provided by the IT Department, file your returns accurately, and meet the July 31 deadline. This will not only expedite the refund process but also help maintain compliance with tax regulations.

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