ITR filing for FY 2023-24: 8 things to keep in mind while filing your income tax returns

The government implements new regulations every year to boost compliance, streamline procedures, or handle changes in the economy. To guarantee correct tax returns and take advantage of any potential benefits, it is important to stay updated about these adjustments.

Vikas Dahiya, Director of ALL India ITR, says,, “While the core filing process might seem familiar, even minor adjustments in regulations can significantly impact your tax calculations, deductions, and potential refunds.” He also highlights three important improvements that may have an effect on how you file your ITR in 2024.

Changes in tax slabs and rates

The optional new tax regime, which offers lower tax rates without exemptions and deductions, has seen the introduction of new tax slabs by the government this year. The previous system, which included a number of exemptions and deductions, is still available to you. The new regime, on the other hand, streamlines the procedure but does away with the majority of deductions. To decide which regime is better for your financial condition, it's critical to compare the two.

Standard Deduction for Pensioners

Pensioners now have access to a new standard deduction of Rs 50,000. This covers pension income and offers assistance akin to that which is given to salaried workers. Retirees should be careful to take this deduction to lower their taxable income.

Changes in Section 80C and 80D limits

The maximum amount that may be invested in PPF, NSC, and life insurance premiums under Section 80C is still Rs 1.5 lakh. Nonetheless, there has been a drive to encourage digital savings and payments in the healthcare industry, as seen by the higher Section 80D medical insurance cap limitations. Higher tax deductions are now available to taxpayers for health insurance premiums paid for older parents, families, and themselves.

Updated TDS and TCS provisions:

The scope of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been expanded. Notable changes include new TDS rates for non-salaried individuals and professionals and additional compliance requirements for e-commerce transactions. Taxpayers must review their TDS certificates and ensure that appropriate credits are claimed in their ITR.

Higher deduction for home loan interest:

The extra deduction of Rs 1.5 lakh for interest on house loans taken out under Section 80EEA has been extended for first-time homebuyers. In addition to offering taxpayers with new house loans significant relief, this attempts to promote home ownership.

Faceless assessment and appeals:

To decrease human interaction and increase openness, the government has extended the channels for faceless assessments and appeals. It is advisable for taxpayers to acquaint themselves with the processes and guarantee that they complete all online submissions and notice responses within the designated time frames.

Enhanced reporting requirements:
 
The updated ITR forms now incorporate more disclosures, particularly with regard to overseas income and assets as well as big transactions. Taxpayers who have substantial financial operations or investments abroad must submit comprehensive information in order to avoid fines.

Relief for senior citizens:

For seniors 75 years of age and above, who exclusively get interest income from their pension, they do not need to file an ITR as long as the bank takes off the mandatory tax. For elderly people with clear-cut sources of income, this simplicity lessens the compliance load.