Income tax exemption: Eligible taxpayers have a chance to get income tax exemption under section 87A of Income Tax till January 15. For this, revised and belated ITR will have to be filed, the last date for which is ending on January 15.
Income tax exemption: Eligible taxpayers have a chance to get income tax exemption under section 87A of Income Tax till January 15. For this, revised and belated ITR will have to be filed, the last date of which is ending on January 15. At the same time, those taxpayers who have not filed returns for the financial year 2023-24 also have three days left.
It is worth noting that the last date for filing delayed ITR was earlier 31 December 2024, which was extended after the order of the Bombay High Court. The High Court had extended the deadline while giving relief to eligible taxpayers under Section 87A. This section gives tax exemption to those individuals whose total taxable income is up to five lakhs under the old tax regime and up to ₹ 7 lakhs under the new tax regime.
Tax payers were missed due to technical flaw
Experts say that such taxpayers were eligible to claim tax exemption but were facing difficulties in filing the claim after July 5, 2024. In fact, due to changes in the department’s ITR software after July 5, many taxpayers were not able to file tax exemption claims. Due to this, tax demand notices were sent to many taxpayers by the department. Some taxpayers had approached the High Court against this.
You will get this much tax exemption
According to tax experts, under section 87A, in the new tax system, those having income up to seven lakhs can claim a tax exemption of Rs 25,000. Whereas, in the old tax system, those having income up to five lakhs can claim a tax deduction of Rs 12,500.
How to claim
To address these claims, the Income Tax Department has updated the Excel utilities for ITR Form 2 and 3. The eligible taxpayer will have to manually fill in the column for claiming tax exemption in the Excel utility instead of autofilling it. Leaving this column on autofill will not result in tax exemption. After editing the form manually, the form will have to be verified.
How much fine after the last date
If the annual income of a taxpayer is more than Rs 5 lakh, then he will have to pay a late fee of Rs 5,000. If the annual income of a person is less than Rs 5 lakh, then he will have to pay only Rs 1,000 as a penalty.
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