Important Changes in August 2024

Now that you’ve breathed a sigh of relief after submitting your income tax returns in July, there are numerous financial changes to watch out for in August. From verifying returns to new credit card rules all these changes are up in the line in August 2024.

Let’s know about it.

Penalty if not filed the Return by Deadline

First and foremost, people who fail to file their returns by July 31 will be subject to a penalty. Belated returns for the financial year 2023-2024 must be submitted by December 31, 2024. So, while you can still file the returns, you will have to pay a fee of Rs.5000 under Section 234F of the Income Tax Act of 1961. For people with incomes up to Rs.5 lakh, the penalty for missing the tax filing deadline is a maximum of Rs.1,000. It is crucial to note that this penalty is levied even if no actual tax is due.

Verify Income Tax Returns within 30 Days

For individual taxpayers who submitted their returns in July, online submission is not the final step. You must verify the returns within 30 days of filing online. The income tax department will then process it.

You can easily accomplish this online through the IT e-filing portal using your Aadhaar, pre-validated bank account, demat account, and so on. It is preferable to complete this process simultaneously with the ITR submission rather than taking a 30-day break.

If you do not finish the process within 30 days, the date of verification will be considered the date of submitting returns. So, if you validate your returns after 30 days and the July 31 due date has passed, it will be considered return filing after the due date.

Proposal of SEBI on New Risky Asset Class for Mutual Funds

The Securities and Exchange Board of India (SEBI) on July 16 proposed a new asset class that offers investors a regulated investment product with higher risk-taking capabilities and a higher ticket size, with the goal of reducing the proliferation of unregistered and unauthorised investment products. SEBI will accept comments and recommendations on the proposal product category until August 6.