Image Source : FREEPIK Taxpayers can start filing their Income Tax Returns (ITR) for the financial year 2022-23 from April 1, with the new assessment year beginning from the same date.
ITR filing deadline: The deadline for filing Income Tax Returns (ITR) for income earned in the financial year 2022-2023 is July 31, 2023, as per the usual schedule. As the ITR filing season approaches, it is essential for taxpayers to be aware of important details such as when to file their ITR and how to go about it. In this regard, here is all the necessary information to assist taxpayers in their ITR filing process.
When to file ITR?
Taxpayers can start filing their Income Tax Returns (ITR) for the financial year 2022-23 from April 1, with the new assessment year beginning from the same date. The deadline for filing ITR is July 31, after which taxpayers will have to file a belated ITR, which may attract penalties or other costs.
Where to file ITR?
Taxpayers have the option to file their ITR both online and offline. The online mode is called e-filing and can be done through the Income Tax Department’s website, which is incometax.gov.in. On the other hand, for the offline mode, taxpayers must use the Offline Utility for ITRs to file their income tax returns.
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How to calculate Income Tax?
Calculating income tax depends on various factors such as the income earned, tax slab rate, deductions, exemptions, etc. Here are the steps to calculate income tax:
Determine the gross income earned during the financial year, which includes income from salary, house property, capital gains, business or profession, and other sources.
Subtract the applicable deductions under section 80C to 80U, which includes investments in PPF, insurance, ELSS, etc.
Compute the net taxable income by subtracting the deductions from the gross income.
Determine the tax slab rate based on the net taxable income.
Calculate the tax liability based on the tax slab rate applicable.
Add the applicable surcharge and cess to the tax liability.
The final amount will be the income tax payable.
Who should file an ITR?
During the ITR filing season, individuals in India who earn a taxable income or satisfy specific conditions, such as owning more than one property, foreign assets, or holding directorship in a company, must file an annual Income Tax Return (ITR) within the stipulated deadline.
How to pick ITR form?
ITR-1 form can be filed by an individual with a total income of up to Rs 50 lakh and who receives income from salary, one house property, and other sources such as interest. If you have income from residential property and your total income exceeds Rs 50 lakh, you must file ITR-2. Professionals are required to file ITR-3.
Individuals, Hindu Undivided Families (HUFs), and firms having total income up to Rs 50 lakh and income from business or profession can file ITR-4.
ITR-5 and ITR-6 are specifically designed for LLPs and businesses, respectively.
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