Income tax return is an electronic form which is designed to report the particular of income earned from any sources during a financial year. There are different types of ITR forms designed to report different types of income. The basic structure of the forms like particulars of taxpayers, computation of Income, computation of tax and details of taxes paid is common is each form. In India, financial year starts from 1^st April and lasts on 31^st March and therefore, the income derived from any sources in a particular financial year are reported in the applicable form. A taxpayer can file an applicable ITR form for a particular financial year before the due date on the income tax website.

Applicable form for individual taxpayer for financial year 2023-24:

 

 

Who is Liable to File ITR

Every person who is living in India is required to file Income tax return if his/ her income exceeds the taxable limit. The limit of taxable income for an individual taxpayer for the financial year 2022-23 is Rs. 2.50 lakh; except senior citizen.  However, certain individuals are required to file his/ her return compulsorily even if his/her income during the year is below taxable limit:

1. Deposited more than 1 crore rupees in one or more current accounts in a bank or a co-operative bank; Or
2. Incurred expenditure of more than two lakh rupees for travel to a foreign country for himself or any other person; Or
3. Incurred expenditure more than 1 lakh rupees towards consumption of electricity; Or
4. Total sales, turnover or gross receipts, in the business exceeds 60 lakh rupees during the financial year; Or
5. Total gross receipts in profession exceeds 10 lakh rupees during the financial year; or
6. Total Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) during the financial year, is Rs. 25000 or more; or
7. Deposited in savings bank account, rupees 50 lakh or more during the financial year:

 

How to File ITR

To file an ITR a taxpayer should first register his/her PAN on the income tax portal as a taxpayer.  After registration the taxpayer is required to login to the portal through login credential.

 

Under the e-file tab there is an option to select income-tax return and the file Income tax return

 

 

The taxpayer is required to select the assessment year from the drop-down menu. Assessment year is the year succeeding to the relevant financial year. E.g., if you are filing return for financial year 2022-23 you have to select 2023-24 as assessment year.

 

 

 

 

What is the Due date of ITR

The due date of ITR for different taxpayers is different. Generally, the taxpayers whose accounts are liable to be audited under the income-tax act or any other act can file ITR up to 30^th September. In any other case the due date of filing of ITR is 31^st July.

 

Benefits of Filing Income Tax Returns (ITR) by Individuals:

1. Compliance with the Law: Filing income tax returns is a legal obligation for individuals meeting the income threshold set by the government.

2. Income Validation:

It serves as documentary evidence of your income and financial transactions, facilitating various financial activities like applying for loans, visas, or obtaining credit cards.

3. Claiming Tax Refunds:

If excess tax has been deducted or you have made extra tax payments, filing returns allows you to claim a refund from the government.

4. Carry Forward of Losses:

Losses incurred in a financial year, such as capital losses or business losses, can be carried forward for set-off against future income if returns are filed within the due date.

5. Avoiding Penalty and Interest:

Timely filing of returns helps avoid penalties and interest charges levied for late filing or non-filing of tax returns.

6. Meeting Visa and Immigration Requirements:

Many countries require tax returns as part of the documentation for visa applications or immigration processes.

7. Loan Approval and Financial Transactions:

Banks and financial institutions often request income tax returns as proof of income while processing loan applications or financial transactions.

 

Consequences of Non-Filing or Late Filing of Income Tax Returns:

1. Penalty Imposition:

Individuals failing to file returns within the due date might be subject to penalties, which can include a monetary fine.

2. Loss of Refunds:

Failure to file returns may result in the forfeiture of any tax refunds owed to the individual.

3. Inability to Carry Forward Losses:

Delay or non-filing can lead to the loss of the opportunity to carry forward losses to subsequent years for set-off against future income.

4. Legal Complications:

It might result in legal proceedings, notices from the Income Tax Department, or scrutiny leading to assessments and possible additional tax liabilities.

5. Impact on Financial Transactions:

Non-filing can affect loan approvals, credit card applications, or other financial dealings requiring proof of income.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return required to be filed under Goods & Services Tax

In Goods and Services Tax (GST), there are various types of returns that taxpayers need to file based on their business type and turnover. Here are some of the key returns and their due dates:

1. GSTR-1: This return includes details of outward supplies of goods or services. It needs to be filed by registered taxable persons having a turnover above the specified limit. The due date is usually the 11th of the succeeding month.
2. GSTR-3B: A summary return to declare the summary of outward and inward supplies along with the payment of tax. It's a monthly return and is generally due by the 20th of the succeeding month.
3. GSTR-4: This return is for taxpayers registered under the Composition Scheme. It's a quarterly return, and the due date is the 18th of the month succeeding the quarter.
4. GSTR-5: The return to be filed by a non-resident taxable person. This return includes details of outward supplies, inward supplies attracting reverse charge, tax liability, taxes paid, and other relevant information. It needs to be filed by the 20th of the succeeding month or within seven days after the expiry of the validity period of registration, whichever is earlier.

Additionally, non-resident OIDAR (Online Information Database Access and Retrieval services) suppliers are required to file GSTR-5A, which contains details of supplies and tax collected at source. This return also needs to be filed by the 20th of the succeeding month.

5. GSTR-9: An annual return to be filed by normal taxpayers. It consolidates the information filed in monthly or quarterly returns during the year. The due date is generally the 31st of December of the subsequent financial year.
6. GSTR-9C: This is the reconciliation statement that taxpayers whose turnover exceeds a specified limit need to file along with GSTR-9. It requires the certification of the reconciliation statement, audited financial statements, etc. The due date is also generally the 31st of December of the subsequent financial year.

Additionally, there are separate returns for Input Service Distributors, e-commerce operators etc. The specific returns to be filed can vary based on the nature of the business and the turnover. It's essential for businesses to understand their filing requirements and comply with the GST regulations to avoid penalties or fines. Also, these due dates are subject to changes by the GST council, so it's advisable to keep an eye on notifications or updates by the authorities.