50 Days Left to file Income Tax Returns (ITR): All You Need to Know

The deadline to file the Income Tax Returns (ITR) without penalty for the Assessment Year 2023-24 is July 31st 2023, exactly 50 days more. The Income tax department has released the offline excel utilities and enabled other necessary options for filing the same.

What is Income Tax Returns/ ITR?

In India, the term "income tax return" refers to the submission of a document or form that details the earnings, tax credits, and obligations of a person or an organisation for a particular fiscal year.

To declare one's income, utilise any allowable deductions and exemptions, determine one's tax burden, and settle tax debts with the government are the main goals of filing income tax returns.

What are the different types of ITR?

1. ITR 1 (Sahaj): This form is for people whose total annual income is up to Rs. 50 lakhs and comes from salary, one residential property, and other sources (not including winnings from lotteries and horse races).
2. ITR 2: This group includes people including Hindu Undivided Families (HUFs) without a source of income from a business or profession. Individuals with income from salaries, multiple homes, capital gains, overseas assets, and other sources are eligible to utilise this form.
3. ITR 3: This ITR form is for people and HUFs who make profits and gains from their own businesses or professions.
4. ITR 4 (Sugam):
   This form can be used by individuals, HUFs, and firms (other than LLPs) with presumed income from a business or profession. It applies to taxpayers whose business or professional income was calculated under the presumptive taxation system.
5. ITR 5: Firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) are all eligible to use this form. Additionally, it applies to Artificial Juristic Persons, Deceased Estates, Insolvent Estates, Business Trusts, and Investment Funds.
6. ITR 6: This form is for companies other than companies claiming exemption under Section 11 (income from property held for charitable or religious purposes).
7. ITR 7: This form is for individuals and companies that are required to submit a return in accordance with Sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act, 1961 (for charity and religious organisations, political parties, research associations, news organisations, etc.).

Is it Mandatory to File ITR?

Yes, it’s compulsory to file ITR. Taxpayers are given advance notice of the income tax rate. In addition to incurring late filing fines, filing taxes late will reduce your ability to obtain a loan or a travel visa. Also, it may attract heavy penalties.

Where to file ITR?

The taxpayers have to file the ITR through the income tax portal (https://www.incometax.gov.in/iec/foportal/). The department has rendered the means to submit the returns before the deadline both offline and online. The utilities were issued later, even though the filings began on April 1st, 2023.

Read More: Filing ITR? Check this Step by Step Guide to Verify Salary Details, Form 16 and Tax Liability

Who should file an ITR?

1. All individuals. However the tax rates different for different income slabs and the different age groups. According to the Financial year 2023-24, the tax rates are:

Individuals below the age of 60: 2.5 lakhs and above with the starting tax rate of 5% which may go up to 30% for above income of 10 Lakhs per year.

Individuals between the age of 60-79: 3 lakhs and above with the starting tax rate of 5% which may rise to 30% for above income of 10 Lakhs per year.

Individuals above the age of 80: 5 Lakhs and above with the starting tax rate of 5% which may go up to 30% for above income of 10 Lakhs per year.

2. Non Residents of India (NRIs)/ Individuals with foreign income
3. Registered Companies and firms
4. Trusts and charitable institutions
5. Individuals who has assets outside the India/ having foreign assets

For the most recent exemption limit, it is best to refer to the most recent income tax regulations or speak with a tax expert.

What are the documents you need to file ITR?

1. Permanent Account Number (PAN) card
2. Aadhar Card
3. Form 16
4. Form 16A/Form 16B/Form 16C
5. Form 26AS
6. Bank statements
7. TDS certificates (from bank, employer or other organisations)
8. Investment and Savings proof for tax saving
9. Proofs to claim deductions under section 80D to 80U (health insurance premium for self and family, interest on education loan)
10. Capital gains (if any)
11. Other relevant documents depending on your individual situation like rental agreements, details of foreign income, receipts of rent paid, documents to claim deductions or exemptions etc.

The taxpayer must select the appropriate ITR form to submit the returns under the direction of tax professionals such as registered Chartered Accountants. Calculate your total income and tax obligations as well. Then submit the ITR online with the aid of a tax professional, then confirm the details.

Remember to file at least 10 days before the deadline because the income tax portal is not user-friendly and the experts are experiencing issues with ITR filing.

Read more: Income Tax Return filing Due Date Ends on 31st July: Professionals facing Errors

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