ITR filing last date: Thinking of choosing old tax regime for FY23-24? Do this or you won't be able to select this regime after deadline

There are two tax regimes available for taxpayers in India, one is old and the second is a new tax regime. Today, July 31 is the last day to file the income tax return for financial year 2023-24. If a taxpayer fails to meet the deadline, they will need to pay a fine for late ITR filing.

Apart from paying the penalty, a taxpayer will not be able to choose the old tax regime after crossing the last date i.e. July 31, 2024. According to the income tax department, you won't be able to file your ITR under the old tax regime from August 1, and you may have to face financial loss as there are various exemptions under this regime.

What is the old tax regime?

Under the old tax regime, a taxpayer doesn't need to pay a tax under Rs five lakh annual income. Taxpayers choose this regime to save tax under various deductions. 

Also read: ITR filing season: Who is exempted from filing ITR and doesn't pay fine too? Know everything here

New tax regime

The limit of not paying tax under the new regime is Rs seven lakh. This means you don't need to pay tax if your annual income is under Rs seven lakh. Currently, this is the default tax-paying regime. You can change this to July 31 only. 

How much penalty do you need to pay after July 31?

If your taxable income is less than Rs five lakh then you will need to pay a tax of Rs 1,000 and if the taxable income is over Rs five lakh, then the fine will be Rs 5,000.

Many people try to do various things to get a refund from the I-T department. The Income Tax Department has asked those filing returns not to make fake claims for expenses and not to understate their income. 

According to Revenue Secretary Sanjay Malhotra on Tuesday, July 30, about six crore income tax returns (ITRs) have been filed for income earned in 2023-24. Out of these, 70 per cent of taxpayers chose a new tax regime, said Malhotra.

Read more: About 6 crore ITRs filed for FY24, 70% under new tax regime: Revenue Secretary Sanjay Malhotra