Income Tax: If you are a taxpayer, this is your last chance to get an exemption, which you can easily take advantage of. Under Section 87A of Income Tax, taxpayers can get a bumper exemption, which, if you take advantage of it, you will regret. The last date for getting an exemption for income taxpayers has been fixed as January 15.
For this, a revised and delayed ITR will need to be filed. The last date for the ITR to expire is January 15, so if you are an eligible taxpayer, you can take advantage until then. Therefore, taxpayersmusto file a 2023-2-24 return. There is only a chance of three; do not let it go.
Was the last date for filing ITR increased?
A few days ago, the Income Tax Department extended the deadline for filing ITR to December 31, 2024. The decision was made after the Bombay High Court’s order. The High Court agreed to extend the deadline by giving relief to eligible taxpayers under Section 87A.
This section provides income tax exemption to those whose total taxable income is 5 lakh under the old tax regime and up to Rs 7 lakh under the new tax system. As per the information, such taxpayers were eligible to claim tax exemption but faced problems filing the claim after July 5, 2024. After this, the taxpayers filed a petition in the High Court to extend the date, on which the decision came in favour.
How much tax will be paid?
According to income tax experts, under Section 87A, the new tax system allows for a tax exemption of Rs 25000 for income up to Rs 7 lakh. In the old system, income up to Rs 5 lakh allowed for a tax deduction of Rs 12500. The method of claiming will also be easy.
How to claim?
Income Tax may update the Excel utilities for ITR Form-2 and 3 to pay such claims. Along with this, the eligible taxpayer must manually fill out the column for tax exemption claim in the Excel utility instead of auto-filling it. However, tax exemption will not be available if this column is left on autofill. After manual editing, the form will need to be verified.