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4.8 Star User RatingFiling income tax is always considered a complex process. However, it is not as tedious as it sounds. The Income Tax Department is rigorously working to make the filing process smooth and easy.
The Income Tax Department has also embraced digital technology, and one of the major conveniences that have come through it is electronic filing (e-filing).
From introducing the provision u/s 234F for non-filers of income tax returns to making most of the processes accessible online the department's objective is very clear that it wants your files to be clean and compliant with the law.
While filing ITR, a lot of questions cross the mind, like How to file ITR? Which ITR form is the correct one to choose? What documents are required to file ITR? Can I file ITR for FY 2022-23 (AY 2023-24)? And many.
This article will share the details and latest updates you must know while filing your income tax return (ITR) for FY 2022-23(AY 2023-24).
Budget 2023 Updates
The new tax regime will be the default tax regime as per Budget 2023
The basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh to make the new tax regime more attractive. Also, the highest tax rate of 30% will be levied above Rs 15 lakh income.
In the budget 2023-24 announcement, the rebate under section 87A has been hiked to Rs 7 lakh from Rs 5 lakh under the new tax regime. The rebate benefit will be up to Rs 25000, provided income doesn't exceed the limit of 7 lakhs.
The proposal to introduce the standard deduction in the new tax regime has been shared. As per this salaried class, the pensioners will benefit from a standard deduction of Rs. 50,000/-
Also, the exemption of a family pension of Rs. 15,000 has been introduced under the new tax regime.
Reduction in the surcharge on annual income above 5 crores from 37% to 25% under the new regime. Currently, the highest tax rate is 42.74%, which would slash the maximum tax rate to 39% after this reduction.
The limit of Rs. 3 lakh for tax exemption on leave encashment on non-government salaried employees has been raised to Rs. 25 lakh.
Furthermore, the new tax regime has reduced the income tax slabs from 7 to 6. The revised tax structure as per the new tax regime is:-
Read more updates about Budget 2023 here.
You can calculate your estimated income tax after the amendments made in Union Budget 2023-24 here.
Income tax is a type of tax that is levied by governments on the income earned by individuals, corporations, and other entities. The tax is usually calculated as a percentage of the income earned, and the amount paid is used to fund various government programs and services.
eFiling of Income Tax returns refers to the electronic filing of tax returns through online platforms provided by tax authorities. It is an alternative to the traditional method of filing paper-based tax returns. This process is easy; quickly, in the comfort of your home or office, you can file an income tax return.
Individuals are required to pay income tax on their salary or wages, as well as on other forms of income such as interest, dividends, rental income, business profits, and capital gains. Corporations are also required to pay income tax on their profits.
ITR contains all the details of incomes and tax-saving investments an individual does in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax returns (Forms are relevant for individuals, companies, firms, etc.).
In India, there is a general practice that if you are a citizen with a gross income that exceeds the basic tax exemption limit, i.e., 2,50,000 subject to certain conditions, you must file Income Tax Return (ITR). If your income doesn’t exceed Rs 2,50,000 during the year, you’re not legally bound to file your return. But it’s still recommended that you file your return because of the benefits that come with filing an income tax return:
The ITR filing due date for FY 2022-23 (AY 2023-24) is 31st July 2023. ITR filing on the due date is essential to comply with tax laws, avoid penalties, claim timely refunds, maintain accurate financial records, and facilitate financial transactions. It is advisable to prioritize timely filing to stay in line with regulatory requirements and avoid unnecessary complications.
Although, for the people who fall within the limits of a tax audit, the due date is 31st October, and in the case where transfer pricing is applicable, the due date is 30th November after the end of the financial year.
Note: Persons who fall within the limits of Tax Audit are:
As per the finance act 2020 : The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2022-23 (FY 2021-22) if the taxpayer’s cash receipts and cash payments are limited to 5% of the gross receipts or gross payments. The same limit has been increased from Rs. 5 crores to Rs. 10 crores from AY 2022-23 (FY 2021-22)
With effect from 1st April 2021, the threshold limit of Rs 5 crores is increased to Rs 10 crores in case cash transactions do not exceed 5% of the total transactions. Read more here.
Every Indian, including an NRI, is required to file an Income tax return where Total Income exceeds the basic exemption limit of Rs. 2,50,000 for an individual, Rs. 3,00,000 in case of a senior citizen and Rs. 5,00,000 in case of super senior citizens
You are required to file a return irrespective of the fact whether you have paid tax or not. So, even if the employer has deducted TDS in full you are still required to file an income tax return.
However, there are certain conditions, other than income above Basic Exemption Limit, due to which a person would be mandatorily required to file ITR!
Such conditions are :
Although documents differ with the income source still there are a few documents that are common while filing ITR. Also, note that you do not need to submit/upload any of the documents on the website; these are advised to be kept with you so that required information can be filled in correctly, your time is saved and common errors can be avoided)
PAN Card- PAN is a mandatory requirement while filing the Income Tax Return. Your name & DOB on ITR should be the same as per data from the Income Tax Department.
Aadhaar Card- The government has also made it compulsory for all taxpayers to use Aadhaar while filing ITR.
Form 16 - For income under the head salaries
Form 26AS
AIS(Annual Information statement) /TIS (Tax Information Summary)
Capital Gain/Loss Statement - If there is an income/loss under the head Capital Gains
Home loan interest Certificate (if applicable)
Bank Account Statements- Just to find Incomes, Interest on Saving bank account etc. So that you do not miss reporting of any income in ITR.
Bank Account Details- Your details of all the bank accounts i.e. Bank account number, code and Bank Name is, needed to be mentioned while filing ITR.
Challan Details-(If any tax paid) It includes details such as the challan no., BSR code, date, amount of payment of Advance Tax/ Self Assessment Tax etc.
Original Return/Notice- If an individual is filing a revised return or a return is filed in response to notice received, then he/she is required to fill in the details of the original return and details of the notice.
Check the complete list of documents for ITR filing when you have income from salary, house property, capital gains, and other sources.
The income tax department provides the facility for e-filing an income tax return. But before filing the ITR, a few points need to be considered:-
To file the income tax return online, just visit the e-filing website.
Step 1: Log in to the e-Filing portal using your user ID and password.
Step 2: On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.
Step 3: Select Assessment Year as 2023–24 and Mode of filling as online, then click continue.
Step 4: In case you have already filled the Income Tax Return and it is pending for submission, click Resume Filing. In case you wish to discard the saved return and start preparing the return afresh, click Start New Filing.
Step 5: Select Status as applicable to you and click Continue to proceed further.
Step 6: You have two options to select the type of Income Tax Return:
Note:
Step 7: Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started.
Step 8: Select the checkbox applicable to you regarding reason for filing ITR and click Continue.
Step 9: In case you wish to opt for New Tax Regime, select Yes in the Personal Information Section. Please note the pop-up information that certain deductions and exemptions are not available in the new tax regime. Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required). Click Confirm at the end of each section
Step 10: Enter/ Edit your income and total deductions details in the different sections. After completing and confirming all the sections of the form, click Proceed.
Step 10a: In case there is a tax liability
After clicking on total tax liability, you will be shown a summary of your tax computation based on the details provided by you. If there is tax liability payable based on the computation, you will get the Pay Now and Pay Later options at the bottom of the page.
Note:
Step 10b: In case there is no tax liability (No Demand / No Refund) or if you are eligible for a Refund
Click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.
Step 11: If you click on “Pay Now” you will be redirected to e-pay Tax service. Click Continue
Note:
You will be taken to e-Pay Tax page on the portal for making tax payment after you click Continue. Refer to e-Pay Tax user manuals to learn more.
Step 12: After successful payment through e-Filing portal, a success message is displayed. Click Back to Return Filing to complete filing of ITR.
Step 13: Click Preview Return.
Step 14: On the Preview and Submit Your Return page, select the declaration checkbox and click Proceed to Preview.
Note: If you have not involved a tax return preparer or TRP in preparing your return, you can leave the textboxes related to TRP blank.
Step 15: Preview your return and click Proceed to Validation.
Step 16: Once validated, on your Preview and Submit your Return page, click Proceed to Verification.
Note: If you are shown a list of errors in your return, you need to go back to the form to correct the errors. If there are no errors, you can proceed to e-Verify your return by clicking Proceed to Verification.
Step 17: On the Complete your Verification page, select your preferred option and click Continue.
It is mandatory to verify your return, and e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR – it is quick, paperless, and safer than sending a signed physical ITR-V to CPC by speed post.
Note: In case you select e-Verify Later, you can submit your return, however, you will be required to verify your return within 30 days of filing of your ITR.
Step 18: On the e-Verify page, select the option through which you want to e-Verify the return and click Continue.
Once you e-Verify your return, a success message is displayed along with the Transaction ID and Acknowledgment Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.
File ITR with Tax2win
You can file the Income Tax return with Tax2win easily and smoothly. Tax2win simplifies the process of filing Income Tax Returns (ITR) and offers comprehensive tax-related services. With a user-friendly interface and step-by-step guidance, it enables individuals to easily file their ITR online
Once you are done with the e-filing of your income tax return, you must:-
Note:- Verification of an ITR is an important step without which your return filing process is not completed. within the time limit (30 days) you have not verified your tax return,it shall be considered “Invalidate” i.e. null and void. It means that no Income Tax Return has been filed at all.
File your Income Tax Return with absolute ease with us in just 3 steps:
You can learn more about Form 16 here.
Having taxable income and not filing income tax return can put you in trouble with the Income Tax Authorities. Be prepared to welcome notices from the Income Tax Department along with fines and penalties. The consequences of non-filing of return are:
Reporting of virtual digital asset while filing income tax return
As per the latest update in 2023, the income generated via transfer of VDAs like crypto assets is subject to taxation at a rate of 30 per cent ( including surcharge and cess). It's important to note that deductions for expenses, except for the cost of acquisition (if applicable), are not allowed when calculating such income. Income from VDAs cannot be reported on ITR-1 or ITR-4; instead, it should be reported on form ITR-2 or ITR-3 under the head of business income or capital gains.
Rules on opting out of new tax regime
Tax filers can opt for old tax regime or new tax regime as per their deductions and income. If the taxpayer has income from business or profession, they can exercise this option but can withdraw it only once for a previous year, excluding the year in which it was initially exercised. To opt out of the regime, the taxpayer needs to electronically submit Form 10-IE through the e-filing portal. In the current year's ITR form, taxpayers need to provide details if they have ever opted out of Section 115BAC in earlier years, including the Assessment Year in which the option was opted out, the date of filing, and the acknowledgment number of Form 10-IE.
80G deduction Claim
To claim the deduction under Section 80 G, it is important to provide the donation receipt and the donation certificate in Form 10BE. In the ITR form, taxpayers need to disclose their donations in the applicable 'Schedule 80G'. A new column has been added to 'Table D' in the current year's ITR form, requiring the disclosure of the ARN (Donation Reference Number) for donations made to entities where a 50% deduction is allowed, subject to the qualifying limit. The ARN should be obtained from the donation certificate issued in Form 10BE by the donee institutions and should be mentioned in the ITR.
Intraday trading reporting
Profit or loss from intraday trading is categorized as business income for taxation purposes. The current year's ITR form includes Part A–Trading Account, where individuals need to provide separate information regarding their intraday trading activities. The form requires details such as turnover from intraday trading and income from intraday trading transferred to the Profit and Loss account.
Section 89A relief claim
If an individual has claimed relief under Section 89 ( income from retirement benefit accounts held in specified countries), they need to provide the relevant information in Schedule Salary of the ITR form.
Well, even if one misses the due date, still they can file the Late/Belated Return. A belated income tax return can be filed three months prior to the relevant assessment year. You can file the ITR of FY 2022-23 as a belated return till 31st December 2023.
If you do not have Form 16, you can use other documents to calculate your income earned, such as salary slips, bank statements, and investment statements & other documents to calculate your total income and for taxes paid. Furthermore, you can also get information about your TDS and TCS via Form 26AS. and it can be downloaded from TRACES via the Income tax portal.
You can e-file your Income Tax Return even if you do not have form 16 with you. You need to fill in the required details in the software and submit the ITR at the end.
You are required to complete the verification process by either signing it manually or electronically within 30 days from the date of filing your income tax return. You can find out the details here to know the step by step process for both modes.
There are various methods to e-verify ITR:
Check the complete guide on e-verification.
With a view to improving tax compliance and effective utilization of information in tax administration, it is important that returns are filed within the due dates. Keeping this in view the law imposes certain fees u/s 234F in case the returns are not filed on time, these are as under:-
NOTE:- In case total income is up to 5 Lacs then the amount of penalty will be Rs. 1,000 in all cases irrespective of the timing of the filing of your return after the due date.
Further, provisions related to fees for delayed filing of income tax returns are applicable from the Financial year 2018-19 (Assessment year 2019-20) onwards only.
The Due date(or last date) of filing an income tax return for individuals and other taxpayers (HUFs, Association of Persons, Body of Individuals) whose accounts are not required to be audited for the FY 2022-23(AY 2023-24) is 31st July 2023.
Due date (last date) for another assessee, please click on link
Offline mode is only available for Super Senior Citizens (individuals whose age is 80 years or more during the financial year) and whose income is less than Rs 5 lakh per year and who do not have to claim a refund in the return. However, paper returns can be filed by those above 80 years of age who do not have any income from regular business or professional income.
You can easily calculate your tax by using our Income Tax Calculator. Here you just need to fill in the required information in an orderly manner and at last, you will get the amount required to be paid as tax.
Every individual can pay taxes by Online or Offline method stated by the Income Tax Department. Please refer to this link to know more details about it.- https://tax2win.in/guide/online-income-tax-payment
Normally, it takes 20-50 days to get your refund after filing your Income Tax Return. You can track the live refund status from here.
As per Section 139(5) of the Income Tax Act, taxpayers can file a revised return to rectify the mistake made while filing ITR. A Tax return can be revised 3 months prior to the relevant Assessment year for which the return is filed i.e. revised/belated return can be filed upto 31st Dec subject to date extension. For FY 2022-2023 revised/belated return can be filed upto 31st Dec 2023.
Yes, you are required to file your tax return even though TDS has been deducted by your employer, provided your income exceeds the basic exemption limit of Rs. 2,50,000. Further, You can not claim excess taxes paid as refund without filing your tax return.
No, documents are not required to be attached/ uploaded but it is advised to keep them with you. They may be asked by income tax authorities if any assessment notice is served to you in future.
If you have not filed your return by the due date, i.e., 31st July 2023 then you can file a belated return upto 31st Dec 2023.
Yes, as per section 139(1) of the Income Tax Act, 1961, every individual is required to file an income tax return if their income exceeds INR 2,50,000. So, if your income is INR 5 lakhs, then you are required to file ITR, even if no taxes are required to be paid.
ITR-2 is applicable to all those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources but not from business income. Hence, you are required to file ITR-2.
An NRI is only required to file a return if he has earned or received any income in India. If there is no income in India an NRI is not required to file income tax returns. But NRI must file their return if they want to claim refund for the excess taxes paid and carry forward the losses.
If small shopkeepers have a turnover of up to Rs. 2 crores, then they can file their return under the presumptive scheme under section 44AD.
You can file ITR-1 even if you have two employers in a single financial year; provided income does not exceed INR 50 lakhs. ITR-2 is required to be filed by those individuals and HUFs whose earnings are from salary, house property, capital gains and other sources.
You are required to either e-verify your return or send it to CPC, Income Tax Department, Bengaluru within 30 days of filing the return, failing to do so will result in invalidation of return which means the return will be considered as never been filed. You can file a belated return if you have not verified your return in the stipulated time but it will be filed with the penalty applicable u/s 234F.
Yes, the buyer of a car can claim TCS in his return.TCS is deducted by the seller of the car if the car value is Rs 10 lakhs. Any amount paid as taxes by the taxpayers can be verified with Form 26AS and can be claimed while filing the tax return. If no taxes are required to be paid while filing the return, you can claim a TCS refund from the government.
Default User id for income tax E-filing Website is your PAN no. if you have forgotten your password, you can reset it by clicking on forgot password link provided on the login page itself and following the steps.
You can file a revised return if there is any mistake in the return that is observed by you even though the refund has been claimed by you.
In case you don’t have a surname you can show your first name directly in the surname field since the first name field is not mandatorily required.
Yes, it is necessary to report intraday trading losses for income tax. Intraday trading is considered a speculative activity and should be reported as a business income.
BSR code and challan number are just the receipts from the bank that you have paid the tax. If you have already filed your income tax return (ITR) and paid the tax, there is no point in you having outstanding tax. However, if you have some tax outstanding, and you have received the demand notice, then it can be rectified by correcting the BSR code and challan number. If no taxes were paid then you can pay the tax.
Normally to file an income tax return, one is required to provide income tax credentials with the concerned CA but with tax2win you can file your return without sharing your income tax id and password.
No, for filing the income tax return as an NRI you need not mention your income from abroad. Only the incomes accrued or earned in India are to be mentioned in the income tax return. Only incomes from India are taxable.
Yes, if any deduction or allowances has been skipped to be claimed in Form No 16, the tax filer can still claim the same while filing his/her income tax return.
