ITR For Assessment Year 2023-24: An revenue tax return or ITR is the yearly account of your revenue and investments shared with the federal government for tax functions. It is obligatory to file in case your revenue is above Rs 2.50 lakh in a yr. The ITR is filed for the earlier monetary yr in the beginning of the brand new yr. For instance, ITR for 2022-23 (monetary yr) can be filed in 2023-24 (evaluation yr), beginning April 1 till July 31. There may be confusion among the many ITR filers between on-line ITR and offline ITR.
Radhika Viswanathan from Deloitte Haskins & Sells LLP tells what you must be mindful whereas submitting the revenue tax return for the evaluation yr 2023-24.
Online ITR Vs Offline ITR: Which One Is For You?
The revenue tax division lately launched the offline ITR-1 and ITR-4 kinds. The Excel utilities of those ITR kinds for AY 2023-24 can be found for submitting.
Radhika Viswanathan from Deloitte Haskins & Sells LLP, mentioned, “Online or offline ITR is just not a variety by random selection however depends upon the taxpayers’ state of affairs and related components.”
She added that the online mode will be quicker if all details are readily available, and the taxpayer is comfortable working directly on the tax filing portal. On the other hand, an offline utility would be better if there are multiple information flows over different time periods — here one can add as and when the details are available. “Internet connectivity and the volume of data to be fed should also be considered.”
“Paper returns are accepted for a restricted set of taxpayers, reminiscent of very senior residents with non-business revenue. However, for efficient and faster processing, on-line submitting is preferable,” Viswanathan said.
In the offline method, taxpayers are required to download the relevant form, fill it and then upload it on the department’s portal. However, in the online form, taxpayers can directly fill details about their incomes on the income tax portal and submit it. In both modes, the forms need to be verified by the taxpayers.
ITR Filing FY23: What Taxpayers Should Keep In Mind
Viswanathan said taxpayers need to submit their income tax returns on time to avoid last-minute rush or lapses.
“Taxpayers should ensure that the information, which is auto-populated, is correct, and complete before submitting the returns form. Form 26AS (statement of the tax credit) and annual information return (AIR) are two data sources that need to be reviewed in detail before finalising the tax return,” she mentioned.
Who Needs To File ITR?
Companies and people who’re incomes above the revenue tax exemption restrict are required to file an revenue tax return beneath the Income Tax Act. Currently, these people who earn greater than Rs 2.5 lakh in a yr have to file the annual ITR.
Salaried people want Form 16 issued by their employers to file their ITRs simply. The final date for employers to challenge Form 16 is June 15, and the final date to file ITR for taxpayers whose accounts aren’t required to be audited is July 31, 2023, for AY2023-24 or FY2022-23.
Apart from this, firms which have earned an revenue (revenue or loss) over the past monetary yr have to file the ITR.
What Are ITR-1 and ITR-4 Forms?
The revenue tax division has launched offline utilities for ITR-1 and ITR-4 kinds. There are 7 ITR kinds for various taxpayers.
ITR 1 is for resident people (aside from these not ordinarily resident) having complete revenue as much as Rs 50 lakh, having revenue from salaries, one home property, different sources (curiosity and many others.), and agricultural revenue as much as Rs 5,000.
ITR 4 is for resident people, HUFs and corporations (aside from LLP) having complete revenue as much as Rs 50 lakh and having revenue from enterprise and career which is computed beneath Sections 44AD, 44ADA or 44AE and agricultural revenue as much as Rs 5,000.
(The story was initially revealed on May 1, 2023)
