ITR Filing Deadline for Salaried & Non-Business Individuals (ITR-1 & ITR-2)

Under the recently updated Income Tax Act guidelines, the July 31st deadline is now strictly designated for taxpayers filing ITR-1 (Sahaj) and ITR-2. This primarily covers individuals and Hindu Undivided Families (HUFs) earning income from salary, pension, capital gains, house property, or other sources like interest and dividends.

Important Considerations:

1. Exclusion of Business Income: If you have any business income, freelancing income, or are a partner in a firm, you must file ITR-3 or ITR-4, which have a different deadline (August 31st). 2. Late Fees: A penalty of up to ₹5,000 is levied under Section 234F for missing this deadline (reduced to ₹1,000 if total taxable income is below ₹5,00,000). 3. Penal Interest & Loss of Benefits: Missing the deadline incurs 1% monthly interest (Section 234A) on unpaid taxes and results in the permanent loss of the right to carry forward capital losses to offset future taxable income.

Taxpayers are advised to reconcile their Form 16 and Form 26AS/AIS early to ensure a smooth filing process before the portal gets congested.