Income Tax Return: There are only a few months left to file your Income Tax Return (ITR). The new financial year kicked off yesterday, April 1st, which means taxpayers can now submit their taxes for the financial year 2024-25. The deadline for filing ITR is set for July 31, 2025.
Taxpayers earning over Rs 50 lakh
ITR-2 is specifically for taxpayers earning over Rs 50 lakh annually. The government has updated the Excel utility for this, which can offer several advantages to those filing ITR-2. This form is particularly tailored for business owners.
So, what are the perks of using this updated utility?
By utilizing the Excel-based ITR-2 file, taxpayers can benefit from easier manual calculations and data entry, leading to fewer errors in their tax submissions. However, this update is only beneficial for those who are filing ITR-2.
Income Tax Department launched the new Excel utility (version 1.11)
On March 25, the Income Tax Department launched the new Excel utility (version 1.11) to simplify the filing process for taxpayers. According to the Income Tax Act of 1961, anyone whose income exceeds the specified limit must file ITR-2.
Now, let’s talk about the benefits of filing your ITR
When you file your ITR, you can reclaim any TDS (Tax Deducted at Source) that has been deducted from your income, which typically happens on interest, commissions, salaries, or fees. Additionally, you can offset financial losses, such as those incurred in the stock market or from business or property investments, by filing your ITR. This can help reduce your taxable income for the following year.
Filing your ITR also serves as proof of income when applying for loans, as lenders often require this documentation. Plus, if you’re traveling abroad, having your ITR can come in handy as proof of income in those situations as well.