ITR for assessment year 2023-24: A tax return or ITR is the annual account of your income and investments shared with the government for tax purposes. It is mandatory to deposit if your income is more than Rs 2.50 lakh in a year. The ITR is filed for the previous fiscal year at the start of the new year. For example, the ITR for 2022-23 (fiscal year) will be filed in 2023-24 (assessment year), from April 1 to July 31. Although online RTI filing or e-filing has not yet started, you can use the offline RTI utilities. .
Radhika Viswanathan of Deloitte Haskins & Sells LLP explains what you need to keep in mind when filing your tax return for the 2023-24 tax year.
Online ITR Vs Offline ITR: Which One Is Right For You?
The Income Tax Department released the ITR-1 and ITR-4 forms offline last week. Excel utilities of these ITR forms for AY 2023-24 are available for filing.
Radhika Viswanathan of Deloitte Haskins & Sells LLP, said, “The online or offline ITR is not a random selection, but depends on the circumstances of taxpayers and associated factors. »
She added that the online mode will be faster if all the details are easily available and the taxpayer is comfortable working directly on the tax return portal. On the other hand, an offline utility would be best if there are multiple streams of information over different time periods – here one can add as details become available. “Internet connectivity and the volume of data to be fed must also be considered.”
“Paper returns are accepted for a limited set of taxpayers, such as very old people who have no business income. However, for efficient and faster processing, online filing is preferred,” Viswanathan said.
In the offline method, taxpayers are required to download the relevant form, fill it out and then upload it to the department portal. However, in the online form, taxpayers can directly fill in their income details on the income tax portal and submit them. In both modes, the forms must be verified by the taxpayers.
FY23 ITR filing: what taxpayers should keep in mind
Viswanathan said taxpayers should submit their tax returns on time to avoid rushes or last-minute failures.
“Taxpayers should ensure that the information, which is automatically filled in, is correct and complete before submitting the declaration form. The Form 26AS (tax credit statement) and the annual information return (AIR) are two sources of data that should be reviewed in detail before finalizing the tax return,” she said.
Who must file an ITR?
Businesses and individuals earning above the income tax exemption limit are required to file a tax return under the Income Tax Act. Currently, people earning more than Rs 2.5 lakh per year have to file the annual RTI.
Employees need Form 16 issued by their employer to easily file their ITRs. The deadline for employers to issue Form 16 is June 15, and the deadline for filing the ITR for taxpayers whose accounts are not to be audited is July 31, 2023, for AY2023-24 or FY2022-23.
Apart from this, companies that have earned income (profit or loss) in the last financial year must file the ITR.
What are the ITR-1 and ITR-4 forms?
The Income Tax Department has released offline utilities for ITR-1 and ITR-4 forms. There are 7 ITR forms for different taxpayers.
Also read: ITR 1 to ITR 7, have you selected the correct ITR form for AY 2022-23?
ITR 1 is for resident persons (other than non-habitually resident) with total income up to Rs 50 lakh, having income from salaries, property, other sources (interest, etc.) and agricultural income up to Rs 5,000.
ITR 4 is for resident individuals, HUFs and companies (other than LLP) with aggregate income up to Rs 50 lakh and having business and professional income which is calculated under Sections 44AD, 44ADA or 44AE and an agricultural income up to Rs 5,000.
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