Income Tax Return Filing: As the filing deadline for individual income tax returns draws near, a large number of taxpayers are preparing to submit their forms. However, when the pandemic is still active and there is a desire to maintain a social distance, going to a tax counsellor or a government agency might not be the best choice. E-filing your income tax return is where you’ll find relief in this situation. E-filing allows taxpayers to electronically submit their tax returns from the convenience of their own homes or offices, streamlining and simplifying an otherwise time-consuming and laborious process.
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The beginning of the year 2023 for ITR e-filing: When you will be able to submit your income tax return for the fiscal year 2023–2024
e-filing ITR start date 2023 (AY 2023-24): It is anticipated that the electronic filing of income tax returns (ITR) for the assessment year 2023-24 (FY 2022-23) would begin very soon.
Start of ITR filing in 2023 (fiscal year 2023-2024): It is anticipated that the electronic filing of income tax returns (ITR) for assessment year 2023-24 (FY 2022-23) would begin very soon. According to the opinions of tax specialists, taxpayers might be able to begin submitting their returns during the final week of April or the first week of May. However, persons who are paid on a salary may have to hold off until the middle of June because this is the deadline by which employers must issue Form 16. The e-filing system of the Income Tax Department does not yet offer the option of filing an ITR for salaried taxpayers for the tax year 2023-2024 today.
It is about time to begin the ITR reporting season for the fiscal year 2023-2024. It is reasonable to suppose that taxpayers will be able to submit their ITRs beginning the first week of May or the last week of April. According to Abhishek Soni, co-founder and CEO of Tax2win, a Fisdom firm, the filing would be done for the income earned in the fiscal year 2022-23, which begins on April 1, 2022, and ends on March 31, 2023.
After the close of each fiscal year, the Indian Income Tax Act requires certain people and entities to submit their ITRs to the Income Tax Department. This process must be completed within 30 days. The final date by which a person or company is expected to file their return for a specific fiscal year to avoid any penalties or interest implications is known as the due date for filing an ITR.
A Quick Overview of Income Tax
The primary method through which the government brings in money is through the imposition of taxes. The annual earnings or income of any Indian citizen, organization, or company that operates during a certain fiscal year are typically subject to income tax.
Salary, dividends, interest, capital gains, or other profits are all examples of income that is subject to taxation. In this aspect, the submission of a tax return is the only acceptable means to legitimately justify one’s income.
What exactly is a Return on Income Tax?
Your payment of taxes for a certain assessment year can be verified by submitting a tax return for that year. The documentation of your tax return includes the specifics of your annual earnings as well as the amount of tax that you have paid. This makes it much simpler for every taxpayer to compute their tax burden, plan out their tax payments, and submit claims for tax refunds if they have overpaid.
You need to be familiar with the various ITR (Income Tax Return) forms that are associated with the process of filing an income tax return to finish the procedure without any problems. Every year, the Central Board of Direct Taxes (CBDT) issues notifications regarding these forms.
ITR Forms:
| ITR Form | Applicability |
|---|---|
| ITR-1 (Sahaj) | Individuals having income up to Rs. 50 lakh and having income from salary, one house property, and other sources such as interest income. |
| ITR-2 | Individuals and Hindu Undivided Families (HUFs) have income from salary, more than one house property, capital gains, and other sources of income. |
| ITR-3 | Individuals and HUFs having income from business or profession. |
| ITR-4 (Sugam) | Individuals, HUFs, and firms having presumptive income from business or profession. |
| ITR-5 Partnerships | Partnerships, Limited Liability Partnerships (LLPs), Association of Persons (AoPs), and Body of Individuals (BoIs). |
| ITR-6 | Companies not claiming exemption under Section 11 of the Income Tax Act, 1961. |
| ITR-7 | Trusts, political parties, institutions, and other entities claiming exemption under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) of the Income Tax Act, 1961. |
ITR Filing Due Date AY 2023-24
According to the Income Tax Laws, individuals who are subject to audit are required to submit their ITR by the 31st of July in 2023. The academic year 2023-2024 has not yet seen any extensions announced.
What are the Benefits of Filing an Income Tax Return?
Filing taxes is a legal method that can be used to demonstrate one’s income. It is a significant document that contains significantly more information than Form 16, which is evidence that your present employer has deducted taxes from your salary. On the other hand, the ITR details the elements of Form 16 in addition to the income from other sources.
You can file ITR online at your convenience. The taxpayer is required to go to the official website of the income tax department, travel through the ITR filing option, and pay the applicable taxes to complete the online filing of the ITR.
Filing taxes has the following advantages:
Aids in the Process of Applying for Loans
The individual who is applying for a home loan or auto loan will benefit from the timely filing of their ITR. In addition, to sanction a loan, the majority of Indian banks require a copy of the borrower’s most recent income tax return as one of the essential documents.
For instance, the SBI requires applicants for a vehicle loan to provide their most recent pay stub with an itemized list of all deductions, as well as a TDS certificate, a copy of their income tax return, and Form 16 for at least two most recent tax years. In addition to that, it comes in helpful in situations where an application for a loan is denied.
Helps in Claim Refund
When an ITR is in place, it is impossible to receive a tax refund. Even if the majority of the taxpayers may be investing in FDs, the 10% tax that is owed on such investments is withheld at the time of investment. You are eligible to file tax returns and be granted a complete refund if the entire amount of taxable income is less than Rs. 2.5 lakhs.
Losses on investments can be carried forward.
Filing your income tax return is necessary if you want to carry forward any capital losses. One can alter the capital gains achieved in the subsequent year using this method. The loss sustained as a result of a long-term capital gain can be immediately carried forward for a further eight years after the loss was incurred. These losses are only deducted where there is also a long-term capital gain, which includes any losses that were suffered over a shorter period.
ITR Receipt
A receipt for the ITR is a crucial document that can be put to a variety of different uses. It is evidence that is specific, and it includes your income, the amount of taxation, and income from other sources.
Utilizable as a Proof of Address
The ITR receipt, which is mailed to the registered address regardless of whether the return is filed online or offline, can therefore be used as additional evidence of the taxpayer’s address.
Important for Visa Processing
The receipt for the ITR is also helpful in the processing of visas. If you are going to be travelling outside of the country, the consulates of that country could ask for a copy of your ITR from the years prior, particularly during the interview process for the visa. A copy of your ITR is required for entry into the United States, the United Kingdom, Canada, or any European country. You are required to maintain current ITRs regardless of the reason for your trip outside of the country.
Funding for New Business Ventures
When starting a new business, an individual could require finance from a variety of different capital ventures. To estimate the profitability and stability of the business, the investors may query the ITR. The investor has the option to verify the information with the ITR. As a result, submitting the ITR is an absolute necessity to acquire capital for the firm.
Make use of the High Life Cover
As the number of people who pass away unexpectedly continues to rise, it is more important than ever to purchase life insurance for a greater sum assured. People typically choose life insurance policies that range from 50,000 to 1,000,000 rupees to provide the greatest amount of financial support to their families if the insured passes away unexpectedly. These covers can be requested in exchange for a copy of the ITR form.
Various life insurance firms, such as LIC, require a copy of an ITR to complete the documentation process. Even the level of coverage that is provided by a life or term insurance plan is determined by several criteria, one of which is the income level of the policyholder.
Beneficial for those who are self-employed
If they are unable to use Form 16, the ITR is the sole record that can prove where their income came from. The only requirement is that the annual income must be greater than the basic exemption level of Rs. 2.5 million.
When they have proof of their ITR, businessmen can handle all types of financial transactions with simplicity. In addition to this, it is a valid document that can be used to pay taxes by those who are self-employed.
TDS Claim
In most cases, an employee who is paid on a salary receives their pay after tax and social security deductions have been taken out. According to the most recent tax law, if an employee’s annual income is less than 7 lakhs Indian rupees, then the employee’s wage might not be subject to tax withholding at all. As a result, the assessee can claim the TDS charges if they file an ITR.
Government Tender
It is vital to display the ITR receipts from the previous years whenever you apply for a government tender. This is evidence of the applicant’s financial condition, which reveals whether or not they are capable of meeting the obligation to make payments.
On the other hand, participation is voluntary. It could be different according to the laws and guidelines established by either the state or the central government.
Beneficial to Professionals and Freelancers Working Independently
An individual who is assessed based on their activities does not obtain a Form 16 from anyone. As a result, the sole source that defines independent contractors and professionals that file their income tax returns is the ITR. They could run into a variety of challenges if they don’t have this evidence, including difficulties with transactions and finance.
Income tax slabs and rates for the financial year 2023-24
| Income Tax Slab | Tax Rate |
|---|---|
| Up to Rs. 2.5 lakh | Nil |
| Rs. 2.5 lakh to Rs. 5 lakh | 5% |
| Rs. 5 lakh to Rs. 7.5 lakh | 10% |
| Rs. 7.5 lakh to Rs. 10 lakh | 15% |
| Rs. 10 lakh to Rs. 12.5 lakh | 20% |
| Rs. 12.5 lakh to Rs. 15 lakh | 25% |
| Above Rs. 15 lakh | 30% |
Who Is Eligible to File Online Income Tax Returns?
Individual tax returns (ITR) can be submitted by anyone who fits into one of the following categories:
- Those with an annual income of more than 5 lakh Indian rupees
- Person or household unit that resides in the country but has assets located outside the country
- A company that satisfies the requirements of section 44AB, as well as a cooperative society, business organization, artificial juridical person, and local authority that satisfies ITR 5
- A taxpayer who is responsible for producing returns by section 139 (4B) (ITR 7)
- a citizen or permanent resident of India who has the power to sign for any accounts that you hold outside of India
- If you seek relief under sections 90 or 90A, or if the deductions were sought by section 91,
- All corporations
You need to make a complete report of the audit by sections 10(23C) (via), 10(23C) (VI), 10(23C) (v), 10(23C) (IV), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E, or 115JB to be able to present the proof.
By the provisions of Section 11(2)(a), the person who files the return is required to provide notification to the assessing officer.
Options available for electronically submitting tax returns
1. The use of a Digital Signature Certificate, or DSC, is required when filing taxes online. If you want to file forms for the Internal Revenue Service (IRS) using a Digital Signature Certificate (DSC), you will need the assistance of a chartered accountant.
2. An ITR V form is created to allow online tax filing without the need for DSC. This form needs to be printed out and signed before it can be submitted. Then, after finishing all of the necessary paperwork, you must turn it into the CPC in Bangalore. You have the option of doing this via speed post or even speed post; however, you must ensure that it reaches you within one hundred and eighty days after filling out your form.
3. There is no requirement that you file your income tax return online through the use of an electronic return intermediary (ERI), and you are free to do so even if you do not have a digital signature certificate (DSC).
Things That You Should Be Aware Of Before Filing Your ITR Online
There are a few things that you need to keep in mind when you file your Income Tax Return (ITR) online. Here are some significant considerations to keep in mind:
Compile all of the necessary paperwork, which includes:
Make sure that you have all of the required paperwork, such as Form 16, bank statements, and investment proof, before you begin the process of completing your ITR online. Your income and deductions can then be reported more precisely as a result of this.
Make sure you fill out the appropriate ITR form:
As was just discussed, it is essential to select the appropriate ITR form for your specific circumstances, taking into account both your income and any other relevant criteria. Be sure to pick the correct form to keep yourself from getting into any trouble with the law.
Create an account on the electronic tax filing system:
You will need to register on the income tax e-filing portal to be able to submit your ITR electronically. This is a straightforward process that just needs some fundamental personal and contact information from you.
Link your Aadhaar:
When you file your income tax return online, you are required to establish a link between your Aadhaar and your PAN card. Before beginning the process of electronic filing, check to see that your Aadhaar has been linked.
Verify your ITR:
You have one hundred and twenty days from the day you filed your ITR online to validate it after you have done so. This can be accomplished through a variety of channels, such as the One-Time Password generated by Aadhaar or through online banking.
Maintain a record of your ITR that has been filed:
Be careful to save a duplicate of your completed ITR for your records in case you need it in the future. This will prove useful if there are any inconsistencies or audits.
You can streamline the process of filing your ITR online while simultaneously ensuring that it is accurate and filed promptly if you keep these ideas in mind.
To file income tax returns online, some documents are required.
The following is a list of some of the most important documents that you might require to file your Income Tax Return (ITR) online:
Form 16:
Your employer will provide you with this document that details your pay as well as any allowances and deductions that have been made on your behalf. It is essential to have this document to correctly declare your income.
Bank statements:
You may be asked to present bank statements covering the entire fiscal year to demonstrate how much money you made through interest and other sources.
The proof of investment:
If you want to claim deductions under Section 80C of the Income Tax Act, you will need to produce proof that you have made investments such as fixed deposits (FDs), mutual funds, public provident funds (PPFs), national pension systems (NPSs), and so on. Other types of investments may also qualify.
Capital gains statement:
If you have sold any assets, including stocks, real estate, or gold, you will be required to file a statement of capital gains to declare any profits or losses that resulted from the sale of these assets.
Rent agreement:
To be eligible for House Rent Allowance (HRA), you will need to present documentation in the form of a rental agreement and receipts for your monthly rent payments.
Aadhaar card:
When you file your income tax return online, you are required to establish a link between your Aadhaar and your PAN card. Before you begin the electronic filing process, check to see if your Aadhaar has been linked.
Certificates of the TDS:
If you have received any income from which Tax Deducted at Source (TDS) has been deducted, to claim credit for the tax that has been withheld, you will be required to show TDS certificates.
The Form 26AS is:
This is a document that details the total amount of tax that was withheld from your paycheck and remitted to the appropriate governmental agency. Before you submit your ITR, you should double-verify the information on your Form 26AS to confirm that it is correct.
When it comes to electronically submitting your ITR, the following are some of the most important papers you might require. Be sure to gather and organize all of the required paperwork to guarantee that the filing will be accurate and completed on time.
Instructions for Income Tax Return Filing Via the Internet
You can get the XML sheet by visiting the official website for IT and downloading it. Once all of its columns have been completed, you may then return to the site and upload the completed form to ITR. Even the preparation and submission of your ITR 1 can be done online. Income tax returns Electronic filing, often known as online filing, simplifies the process of submitting income taxes.
- To electronically file your income tax return, you will need to follow the steps that are listed below:
- IncomeTaxIndiaeFiling.gov.in requires that you log in before you can use the website.
- Your Permanent Account Number (PAN), often known as your user ID, is expected to be used instead.
- Take a look at the statement of tax credits you received or even Form 26AS.
- The TDS must meet the specifics of Form 26AS, according to Form 16.
- You will need to select the fiscal year after selecting the income tax return from the drop-down menu.
- The next thing you need to do is obtain the individual tax return form that is appropriate for you. For example, if your exempt income is greater than 5,000 rupees, you will need to select ITR-2 as your return type.
- Utilize the program for the production of your tax return, such as the Open Excel utility, and make use of Form 16 to fill out the specifics of your form.
- To determine the total that is subject to taxation, select the option labelled “calculate tax.”
- Make any necessary tax payments and fill out the information on your challan.
- To validate all of the information presented above, click the “validate” tab.
- Find an XML file and store it on your computer so you may use it later.
- You will need to locate the option labelled “upload return” on the control panel of the portal before you will be able to upload the XML file you have been saving.
- You will be prompted with a pop-up window requesting you to digitally sign the file. If you possess a digital signature, then choose the option that says ‘Yes.’ If you do not have a digital signature, use the option that says ‘No.’
- The ITR-V Form will be generated as a result, and you will need to download it.
- Bring out a printed version of the form ITR-V, and use blue ink to sign it when you’re done.
You are required to mail it to the Income-Tax Department-CPC, which can be found at Post Bag No. 1, Electronic City Post Office, Bangalore, Karnataka 560 100. You have the option of using either rapid post or conventional post, but the item must be received within one hundred and twenty days of the filing of your income tax return.
FAQ’s
What exactly is meant by the term “e-filing of Income Tax Return” (ITR)?
A: The procedure of filing your income tax return electronically through the web portal provided by the income tax department is referred to as “e-filing of ITR.”
Can I be penalized for not filing my taxes electronically?
A: No, electronic filing is not required for all businesses or individuals. E-filing is required regardless of whether or not your income is above a particular threshold or whether or not you are requesting a refund.
What exactly is Form 16 and why is it so vital to have it?
Answer: Form 16 is a certificate that is issued by your employer that displays your salary in addition to any allowances and deductions that you are eligible for. It is essential because doing so enables you to accurately report your income and obtain the deductions to which you are entitled.
How can I find out the current status of my ITR that I’ve already filed?
A: If you have already submitted your ITR, you can check its status by logging into the income tax e-filing system and selecting “View Returns/Forms” from the drop-down menu. You will have the ability to view the current status of your previously submitted return.
Can I make changes to my previously submitted ITR?
A: If you find any mistakes or inconsistencies in your previously submitted ITR, you have the option to make changes to it. You can do this within a predetermined window of time after you have submitted your initial tax return.
The acronym “Digital Signature Certificate” (DSC) refers to what exactly?
A Digital Signature Certificate, often known as a DSC, is a sort of electronic signature that may be applied to documents to digitally sign them. It is utilized to validate the identity of the individual who is submitting the ITR.
Can I submit my tax return even if I don’t have a digital signature certificate?
A: You do not need to have a Digital Signature Certificate to submit your ITR. In these circumstances, you would be required to authenticate your return using alternative methods, such as an OTP generated by your Aadhaar card or online banking.
When I am filing my income tax return online, how can I claim deductions?
A: If you can provide proof of your investments and costs while completing your ITR online, you will be able to claim deductions for them. When claiming deductions, you should make sure that you have all of the appropriate documentation, such as confirmation of investments and rent receipts.