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    Income tax filing

    The Moneycontrol
    Tax-Filing Guide

    The due date for filing income tax returns, considered a tedious annual ritual by many, for the financial year 2022-23 is just a few days away – July 31, 2023. From getting all the documents in order to choosing the right return forms, to navigating the e-filing portal introduced last year, avoiding pitfalls and finally calculating as well as paying your dues, we have covered every detail needed to make the process smooth. Here is our detailed coverage on filing income tax returns for assessment year 2023-24 (financial year 2022-23).

    The Annual Information Statement is a critical document that provides a complete overview of an individual’s transactions during a financial year. It helps in identifying discrepancies in income or deductions, allowing taxpayers to rectify them before filing their income tax returns.

    The last date to file income-tax returns is July 31. But don’t worry if you make a mistake in the returns when filing. Or forgot to mention any income if filed already. The income-tax department allows you to revise returns up to three months before the end of the assessment year. The question is: what if the I-T department has already given you a tax refund?

    Inoperative PANs have been giving a headache to non-resident Indians. Unresponsive jurisdictional assessment officers, lack of online facility to contact them to update residential status and non-receipt of e-verification codes continue to impede smooth filing of NRI tax returns.

    Flood-affected regions such as Delhi, Uttarakhand, Himachal Pradesh and even parts of Gujarat deserve an extension, but it is unlikely that others will get any leeway, say chartered accountants.

    The last date for filing income tax returns for FY 2022-23 is July 31, 2023 (assessment year 2023-24). Filing return is mandatory if your income exceeds the basic exemption limit. You need to be aware of the documents required, and which form you should choose.

    You can now select between the old and new income tax regimes at the time of filing your tax returns, irrespective of which option you had gone in for at the start of the calendar year with your employer. Salaried individuals can do this every year. But for professionals, the option to switch regimes is available only once.

    Watch

    • Video: Watch: Filing ITR For The First Time Or Confused About The Process? Key FAQs Answered

      Are you a first-time ITR filer? Or are you someone who’s also confused by so many questions about return filing? Well, you must watch this video as we have answered all such frequently asked questions of yours.

    • Video: Which Is The Right Income Tax Form For Salaried Professionals, ITR 1 or 2?

      Filing the right ITR form is very crucial. As both the forms ITR-1 & ITR-2 are for salaried individuals, you should carefully choose the one is the right one for you. Watch this video where we explain the key differences between the two.

    • Video: Avoid These 5 Mistakes To Safeguard Your ITR From Rejection

      Filing income-tax returns on time is important as a delay can attract fines and penalties. A delay past the deadline can also lead to rejections and re-filings. In this video, we will talk about 5 mistakes that you should avoid while filing the ITR

    • Video: Why Should You File Nil Returns I Benefits Of Filing ITR Despite Being Under The 2.5 Lakh Tax Limit

      Did you know you’re supposed to file your returns even if you are below the taxable income threshold? If you have an income below 2.5 lakh rupees, you must file a NIL return. Watch this video to find out the benefits of a NIL return filing.

    The portal is designed to provide seamless and intuitive user experience and offers a dashboard displaying all interactions, uploads or pending actions.

    ITR-4 Filing: For individuals and businesses with a specific income profile ITR-4 serves as the appropriate form.

    Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) aren’t money lost forever, you can adjust or claim it back. Low-income earners need to track tax collected and deducted to receive refunds. TDS is not final tax liability, total tax depends on your tax bracket.

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    Tax filing: Wrong ITR form, faulty disclosure of crypto gains, foreign assets could land you in a soup | Simply Save

    Failure to disclose crypto gains, income and foreign stock holdings, interest income or any other source of income could lead to notices for non-disclosure from the income tax department. To know more about the mistakes that could land you in a soup, Moneycontrol spoke to Mayank Mohanka, Partner, SM Mohanka and Associates. Listen in

    Filing ITR for crypto gains? Here’s what you need to know | Simply Save

    Investors should disclose all their centralised exchange wallets, international wallets as well as decentralised finance wallets in the income tax form, says Indy Sarker, co-founder of TaxCryp.

    Oops...Your Annual Information Statement might have crucial errors | Simply Save

    ITR or income-tax return filing process must start with basic preparations like getting your documents such as Form-16, bank account and capital gains statements in order. Check Form 26AS, or tax credit statement, and Annual Information Statement (AIS). In case of any discrepancy in AIS, rely on your information as the former could contain errors, says Aarti Raote, Partner, Deloitte India.

    The due date for submitting your income tax return (ITR) for the financial year 2022-23 (assessment year 2023-24) is 31 July 2023. While the deadline may seem distant, it is advisable to commence the process as soon as taxpayers receive their Form 16. According to the regulations, employers are obligated to provide Form 16 to their employees every year on or before 15 June of the following year, immediately after the financial year in which tax deductions happened. Issuing Form 16 to taxpayers is a mandatory requirement. Filing an ITR is an annual task and is considered a responsibility of every conscientious citizen of the country. By submitting an ITR for a specific financial year, individuals have the opportunity to request a refund for any excess tax paid or deducted during that period.

    Income Tax Filing FAQs
    Who needs to file income tax returns (ITR)?

    Who needs to file income tax returns (ITR)? It is mandatory to file income-tax return(ITR) if your income exceeds the basic exemption limit. For financial year 2022-23 (assessment year 2023-24), the basic exemption limit is Rs 2.5 lakh for those under the age of 60 years, under both the old and new tax regimes. This apart, if you have spent more than Rs 2 lakh on foreign travel or have deposited over Rs 1 crore in current accounts, you have to file returns even if your income does not exceed the basic exemption limit.

    Senior citizens over the age of 75 can choose not to file returns, but can submit declarations to their banks instead, saying they draw no other income. They can do so only if their income sources happen to be pension and interest, and these are received in the same bank account.

    Which ITR form should I choose?

    This will depend on your income source. If you are a salaried individual with income of less than Rs 50 lakh, income from one house property, interest income and agricultural income of up to Rs 5,000, you can use ITR-1.

    But salaried employees with incomes over Rs 50 lakh, capital gains, investment in cryptocurrencies, unlisted shares and so on will have to choose ITR-2. For those with business income, including income from trading on stock exchanges in cash or Futures and Options (F&O) segments, ITR-3 is the relevant form.

    What are the documents needed to file ITR?

    Again, this will depend on your source of income and the respective ITR forms. If you are a salaried individual, you will need documents such as Form-16, bank statements, capital gain statements from your broker, and online mutual fund intermediaries or fund houses.

    You must check both Form 26AS and Annual Information Statement (AIS) on the I-T e-filing portal to ensure that you do not miss out on reporting any income. However, if you are certain that the AIS contains errors, you can go ahead and file returns by taking your records into account.

    What are the ITR-related changes for FY 2022-23 (AY 2023-24) that I need to be aware of?

    The key change pertains to cryptocurrency transactions. From April 1, 2022, gains made from transactions in virtual digital assets (VDA) attract a tax of 30 percent, irrespective of your slab rate. You are not allowed to set off any crypto losses against the gains. Transactions in such assets exceeding Rs 10,000 attract tax deducted at source (TDS) of 1 percent. You will have to make the disclosures related to your cryptocurrency transactions in a separate VDA schedule.
    What are the common mistakes that I should steer clear of?

    To start with, ensure that you select the right ITR form. Using the wrong form will render the ITR form ‘defective.’ You could receive a notice to file revised returns and failure to respond in time will result in your returns being treated as invalid.

    Do not miss out on reporting any income. AIS captures all details. So, it’s best to be transparent. Ensure that you make the required disclosures in schedule VDA and capital gains schedules if you have dabbled in cryptocurrencies or made gains or losses on stocks or mutual funds.

    Do not forget to disclose interest earned on savings and fixed deposits across all your bank accounts as also capital gains made through stocks, mutual funds, etc. Enter the correct bank account details to ensure refunds are credited without hassles.
    Why is it important to verify returns after submission?

    Once you submit your return online, you will have to verify it through the e-filing portal, your net banking account, demat account or Aadhaar-OTP route within 30 days. You can also download ITR-V, the acknowledgement form, and send it to the income tax department’s central processing centre (CPC) in Bengaluru. If you don’t, your return will be considered invalid, and hence, will not be taken up for processing.
    Can I file my ITR after July 31?

    Yes, but the delay will dent your pocket. For FY2022-23 (AY2023-24), you can file belated returns until December 31, 2023, but you will have to shell out a late-filing fee of Rs 5,000. However, this will be limited to Rs 1,000, if your total income is less than Rs 5 lakh.