File ITR 2024 via WhatsApp before July 31: Here's a step-by-step guide

ITR 2024: The last day to file your Income Tax Return (ITR) for the year 2024 is just around the corner. If you haven't completed it yet, make sure to do so by July 31 to avoid any late fee penalties. This year, a new facility has been introduced that allows you to file your ITR directly via WhatsApp, thanks to ClearTax.

How does the new WhatsApp facility work?

This facility aims to simplify the tax filing process for over 20 million low-income blue-collar workers in India, who often miss out on tax refunds due to the complexities involved.

"By leveraging the familiarity and widespread use of WhatsApp, we're is making tax filing more accessible and user-friendly than ever," says Archit Gupta, founder and CEO of ClearTax.

Currently, this service is available for ITR 1 and ITR 4 forms.

What languages are supported for filing ITR 2024?

The facility supports 10 languages, including English, Hindi, and Kannada. Users can complete the entire process, from filing to payment, within the familiar WhatsApp interface. You can gather and submit the required information through images, audio, and text. According to ClearTax, an AI bot will guide users through every step of the process, and will automatically select the most beneficial tax regime for each user.

Who is this service for?

This service is specifically designed for blue-collar workers, including drivers, delivery executives, and home service providers.

How can you file your ITR on WhatsApp?

Step 1: Send a message to ClearTax’s WhatsApp number: +91 89512 62134.

Step 2: Choose your preferred language (currently, only English, Hindi, and Kannada are available).

Step 3: Provide your PAN card number.

Step 4: Provide your Aadhaar number.

Step 5: Provide your email address.

Step 6: Give your father's name, locality, bank account number, date of birth, pin code, etc.

Step 7. Provide your email address again. You will receive an OTP in your email. Share it in the WhatsApp chat.

Step 8: ClearTax will initiate the process to fetch your tax information.

Step 9: You will receive an OTP on your Aadhaar-linked phone number for tax information verification.

Step 10: A summary of your tax information will be shared. Review it, and if you are satisfied, click on the option 'Do e-file'.

Step 11: If you need to pay tax, you will receive a message: "E-filing initiated, but payment is pending."

Step 12: Click on the link provided to complete the payment. Skip this step if no payment is required.

Step 13: Once payment is made (if required), click on 'Proceed to e-file' in the WhatsApp chat window.

Step 14: After the ITR is filed, select 'Tax Verification'. An OTP will be generated. Share that OTP.

Documents required: 
 

PAN card
Aadhaar card
Email-id
Bank Account details for refund
 

Note: You can submit the required information through images, audio, or text. This includes personal details, income details, and necessary documents. Currently, the service supports only ITR 1 and ITR 4.

What is ITR-1 Form (SAHAJ)?

The ITR-1 form is a return filing form. If you earn income from a pension or salary, a single house property, or other sources (excluding betting, gambling, and lotteries), you are eligible to file an ITR-1 form.

Additionally, if you have an agricultural income of up to Rs 5,000, this form applies to you as well. If the income of your spouse or minor is clubbed together, you can also file this form, provided the total income is up to Rs 50 lakh.

What is ITR-4 Form (Sugam)?

The ITR-4 form, also known as Sugam, applies to individuals, Hindu Undivided Families (HUFs), and Partnership Firms generating income from a business or profession. If you have opted for presumptive taxation on your business income under Section 44AE, 44ADA, and 44ADA of the Income Tax Act, 1961, you need to file an ITR-4 form.

ITR 2024: What are the penalties for late filing?

With the deadline for filing Income Tax Returns (ITR) for 2024 fast approaching, it's crucial to understand the penalties for late filing under Section 234F of the Income Tax Act. The Income Tax Department has reduced the maximum late filing penalty to Rs 5,000 from the previous Rs 10,000 since FY 2021. However, taxpayers should not take the deadline lightly, as additional charges and limitations apply to late filers.

How much is the penalty?

For taxpayers whose total income does not exceed Rs 5 lakh, the maximum penalty for late filing is capped at Rs 1,000, providing relief to smaller taxpayers. On the other hand, those with higher incomes may face the full Rs 5,000 penalty if they miss the filing deadline.

What are the consequences of late filing?

One major consequence of late filing is the inability to carry forward certain losses to subsequent assessment years (AYs). If you incur losses during the financial year (FY), such as business losses or capital losses, failing to file your ITR on time means you cannot offset these losses against future income. Offsetting losses helps reduce tax liability in future years. However, it's worth noting that losses from house property can still be carried forward, even if the ITR is filed late.

How does late filing affect refunds?

Taxpayers whose tax liability is less than the total amount of tax deducted or collected at source (TDS/TCS) from their income can claim a refund for the excess amount. However, this refund can only be claimed if the ITR is filed on time. Late filers will face delays in receiving their refunds, causing potential financial inconvenience. This delay means eligible income is left idle with the department, leading to missed income-earning opportunities and cash flow issues.

In addition to penalties, late filers may also need to pay interest on unpaid taxes under Section 234A of the Income Tax Act. The interest rate is set at 1% per month or part thereof, calculated from the day following the due date for filing the ITR. This interest serves as a deterrent against delaying tax payments and encourages timely compliance.