In a recent update from the Income Tax Department, it has been revealed that more than one crore people have successfully filed their Income Tax Returns (ITR) by the end of June.
Similar to last year, this year also shows potential for setting a record in terms of ITR filings.
It is evident that people are becoming increasingly aware of the importance of filing income tax returns,
as the number of returns filed in June this year has seen a growth of approximately 12% compared to the same period last year.
Extended Filing Period beyond July 31st
It is essential to note that the deadline for ITR filing is set for July 31st.
However, according to Income Tax regulations, individuals will not be subject to penalties if they file their ITR after the specified date. Let us explain this rule in detail.
The Income Tax Department is consistently emphasizing the importance of filing ITR on time to avoid penalties.
However, it is not widely known that there are certain cases where individuals can file their ITR even after the deadline without incurring penalties.
According to income tax experts, under Section 234F of the Income Tax Act, if an individual’s total income during the financial year (FY) does not exceed the basic exemption limit,
there will be no consequences for filing ITR late. In simpler terms, if your total income for the financial year 2021-22 is Rs 2.5 lakh or less,
you will not be penalized for filing income tax after July 31st. This filed ITR will be referred to as a Zero (0) ITR.
Exemptions based on Age and Annual Income
Similarly, individuals who choose the old tax regime have a basic exemption limit of Rs 2.5 lakh if they are below 60 years of age.
For those aged 60 years or more but less than 80 years, the tax-free income threshold is up to three lakh rupees.
Additionally, individuals above 80 years of age have a basic exemption limit of 5 lakhs.
Under the new tax regime, income up to Rs 7 lakh is tax-free.