ITR - Income Tax Return 2022-23

An individual is liable to file an Income Tax Return form or ITR on their income to the Income Tax Department. The amount a taxpayer is liable to pay is with respect to their income. An individual is eligible to receive tax returns when it is concluded in the return that the respective individual has paid the excess throughout the year.   

Any individual or business earning any income throughout the financial year is liable to pay income tax according to the Income Tax Laws. The law covers various forms of income, be it salary, profits from a business, earnings from diverse avenues such as rent received, dividends, capital gains, interests, and other such sources. It is to be noted that the returns should be filed prior to the specified date. They shall bear a penalty if the individual fails to honour the deadline. 

Eligibility to File for Income Tax Returns

Individuals or businesses who fall under certain brackets are liable to file income tax returns. Find below the list of individuals and businesses for whom it is mandatory to file Income Tax Returns. 

• Individuals whose total income for the financial year exceeds 2.5 Lakhs are required to file income tax returns. It is to be noted that the limit exceeds 3 Lakhs in the case of senior citizens (60-79 Years). And 5 Lakhs in the case of super senior citizens (80 years and above). The amount should be calculated before factoring in the deductions under Section 80C and Section 80U.
• Any registered company that generates any kind of income, irrespective of the fact that they make profits or not during the financial year. 
• Individuals who are eligible to claim a refund on their income taxes. 
• Citizens who possess assets and financial entities overseas. 
• Multi-national corporations benefit from transactions that were finalised in India. 
• Non-Resident Indians (NRIs) who make more than 2.5 Lakhs in India are also liable to file Income Tax returns.

Documentation Requirements for Income Tax Returns

The income tax is ‘annexure less’ in nature. The concerned individual is not required to produce any proof or documents to attach to the returns. However, they are required to maintain certificates and proofs to claim deductions. They shall preserve these documents in case the Assessing Officer (AO) notifies the individual seeking clarification on the featured transactions in the ITR. There is no need to attach any documents with the returns. However, the taxpayer shall maintain the following documents and forms when they claim deductions: 

Salaried Employees

The salaried employees are required to maintain necessary documents prior to the commencement of the e-filing process. While filing for ITR, they shall maintain records of their –

• Salary Slips (Monthly)
• Form-16 from the Employer 
• PAN Card  (Must be linked to the Aadhaar) 
• The salaried employee is also required to maintain the receipts on all the taxable allowances received, and the exemption amount claimed from such allowances. 

Related to Interest Income

• Bank statements to showcase the interest earned on the savings account. 
• Interest statement on Fixed Deposits. 
• TDS certificate from the bank

It is to be noted that a taxpayer may not need all the documents. Their requirements vary with respect to the case. 

Form 26AS 

The form is a rundown provided by the Income-tax department regarding the taxes deducted on behalf of the taxpayer. It contains necessary information regarding the total taxes deducted, refunds received, and other such details. 

Section 80C Investments 

Many investments, such as NSC, PPF, ULIPS, and ELSS, are eligible for tax deductions under section 80C. The individual is required to maintain documents verifying the investment. 

Documents Maintained to Claim Expenses as Deductions

• Amount contributed to the Provident Fund
  
• School Tuition Fees of Children (If any) 
  
• Premium payments on Life Insurance
  
• Registration charges and stamp duty 
• Home-loan Repayments 

Procedure to Download Income Tax Returns Form Online 

The taxpayer can now conveniently download the ITR form online themselves without any outside assistance. Find below the procedure to download the Income Tax Return form. 

STEP 1: Visit the official portal of Income Tax Filing STEP 2: Select the ‘Register’ or ‘Login’ option on the portal. Whichever is applicable. (Select the user type and enter the required information to authenticate the registration process).  

STEP 3: After the successful login, visit ‘My Account and click on the option of ‘Download pre-filled XML’. Select the assessment year for which the individual is required to file the return.   

STEP 4: Select the ITR form with respect to the income in the description box to download it in Microsoft Excel Format. 

STEP 5: Save the downloaded ‘XML’ file on the laptop or computer. 

STEP 6: Avail the ‘Import from XML’ option to import the pre-filled downloaded XML file into Excel. 

Which ITR form to file? 

The kind of ITR form to be filed is determined by various factors such as 

• Type of Income 
• Category of Taxpayer 
• Net income of the individual 

Find below the types of ITR forms selected and filed depending on the applicability of the individual. 

ITR 1 

This form must be filled by the country’s resident who falls under the following categories

1. Salaried Individuals and Pensioners. However, if the income exceeds Rs 50,000, they cannot opt for this form.
   
2. Any proceeds generated from a property. However, there are provisions for exclusion in case the individual has to bear losses. It is to be noted that an individual cannot opt for this form if they have multiple house properties.
   
3. Income generated from agricultural activities that do not exceed Rs 5,000. If the agricultural income exceeds 5,000, they cannot opt for this form.
   
4. Income generated from miscellaneous sources such as lottery winnings. 

ITR 2 

This form must be filed by individuals and Hindu Undivided Families (HUFs) that fall under the following categories. 

• Income of the individual must exceed 50 Lakhs. 
• Salaried individuals and pensioners 
• Income from House Property 
• If the concerned taxpayer is the Director of a company 
• If the agricultural income of the individual exceeds Rs 5,000 
• Proceeds from any capital gains   
• Income made from foreign assets and income 

ITR 3 

This form is suitable for individuals who generate income from proprietary and professional businesses. Find below the list of individuals to whom  ITR 3 is applicable. 

• In case the concerned taxpayer holds a partner position in a firm 
• Director of the company 
• In case the total valuation of the business is two crores. 
• Income generated from a profession and businesses 

ITR 4   

Individuals who have selected a presumptive income scheme in accordance with Section 44AD, Section 44ADA, and Section 44AE under Income Tax Act, 1961 can use the form. Along with HUFs, partnership firms of Indian residents generate income from business and profession. It is to be noted that Limited Liability Partnerships (LLPs), entities that suffered losses, and income generated overseas are excluded. 

ITR 5 

This form should be opted by entities such as Body of Individuals (BOIs), Associations of Persons (AOPs), Artificial juridical persons, Investment funds, and the estate of deceased or insolvent. 

ITR 6

This form excludes companies not claiming exemptions under Section 11. There is a provision to file the income tax return in such forms digitally. 

ITR 7

This form is for companies and individuals that aim to file returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4E), or Section 139 (4F). Find the following information on the returns that must be filed in accordance with the below-mentioned section. 

• Section 139 4(A): Income generated from property belonging to a trust or the proceeds generated exclusively for charitable and religious purposes must be filed under this section.
  
• Section 139 4(B): Income generated by a political party exceeds the maximum limit they are obligated to file returns under this section.
  
• Section 139 (4C): The following organisations must file the returns under this section-

1. Research Associations
2. Institutions and Associations that fall under Section 10 (23A) 
3. Educational institutions, Hospitals, Universities, funds, etc. 
4. Institutions that fall under Section 10 (23B) 
5. News Agencies 

• •  Section 139 (4D): Educational institutions that are not obligated to furnish any income or loss should file under this section.
    
  •  Section 139 (4E): Business trusts not obligated to furnish any income or loss should file under this section.
  • Section 139 (4F):  Investment funds that are not obligated to furnish any income or loss should file under this section. 

Benefits for Filing Income Tax Returns 

The e-filing of income tax returns provides the following benefits to an individual. 

Convenient 

The e-filing of income tax returns has made it easier for taxpayers to file their returns from the comfort of their homes without any external assistance. 

Accuracy 

The e-filing software ensures the minimisation of any kind of errors. The built-in validations are less prone to errors than when compared to paper filings.  

Confidentiality 

The e-filing leaves little scope for your information to fall into the wrong hands due to the sheltered nature of the process. 

Loan Application 

The individual must produce income-tax returns for the past three years while applying for a home loan. Many financial institutions examine the individual’s income tax returns before approving a transaction. 

Late Filing Penalties of ITR 

If the eligible individual fails to file an income tax return, they’ll be liable to penalties under multiple sections of the Income Tax Act. Find below the various fines one might pay with respect to the inconsistency in their ITR filing. 

Section 234F: The individual would have to pay a fine of Rs 5,000 if they file their ITR after the deadline set by Income Tax Department. 

Section 234A: Under this section, if the individual fails to file ITR after the deadline and has outstanding taxes yet to be paid. They will be obliged to pay a monthly interest of 1% of the outstanding tax amount from the deadline of filing. 

Section 271H: If the individual fails to file TDS and TCS returns before the deadline. They will be required to pay a fine of Rs 10,000-1,00,000 along with a late filing penalty, i.e. Rs 200 per day until the TDS or TCS is disbursed. 

Section 270A: Under this section, an individual must pay 50% of their total income tax payable in case they fail to file an ITR despite having a taxable income or if they’re discovered to under-report their income in their returns. 

Procedure to File IT Returns without Form 16

Form 16 is a TDS certificate issued by employers to their salaried employees, which gives information on the TDS deducted from the salaries of the concerned individual. However, sometimes an employer might not issue the certificate for a variety of reasons. Find below the procedure of how salaried employees can file their IT returns without any possession of  Form 16. 

• Collect all the documents regarding the income from all the sources. For example, the payslips from the employers throughout the financial year. The individual should also account for any interest-earned investments and gains from the sale of a capital asset. 
• Calculate the TDS deducted from the income with the assistance of Form 26AS, which can be easily downloaded online. 
• The individual must compute the total income, the sum of the income received and the TDS deducted. 
• Factor in the various eligible deductions. For example, the individual can examine if House Rent Allowance (HRA) features in their salary composition. The individual must submit rent receipts to claim HRA deductions.  
• After subtracting the deductions from the total income received during the financial year, you will be able to derive the amount of the total taxable income. 
• Apply for the tax slab rate applicable to the taxpayer to compute the tax liability for the year. 
• The tax payable will be the difference between TDS deducted and the computed tax liability. 
• The individual can now file their Income Tax Returns with the amount derived. 

Why is ITR Compulsory?

Income tax return filing is required for people whose income is above the exemption threshold, as well as for people who make money through their businesses, professions, or capital gains and who want to receive a tax refund. The filing of ITR makes it easier to track income, calculate taxes due, and apply for refunds when applicable. It also confirms the veracity of income sources, which is helpful when applying for loans and other financial services. Additionally, timely Income tax return filing aids in maintaining a high credit score, which is necessary for financial transactions. ITR is a crucial step in the direction of economic stability and expansion.

Process for ITR Filing

The process of filing an income tax return online is explained in the steps below.

• Click the “Login” option on the official Income Tax e-filing website.
• Afterward, enter your password after clicking continue and entering your username.
• After entering your login information, select “e-file” from the menu, and then select “File Income Tax Return.”
• Click “Continue” after selecting the Assessment year for which you want to prepare your income tax returns.
• The next step will ask if you want to file your returns electronically or manually. In this situation, you must select the first option, the suggested method of filing your taxes.
• You can decide whether to submit your income tax returns as an individual, a Hindu Undivided Family (HUF), or another entity. Select the “individual” radio button.
• The income tax returns (ITR) you want to file should be selected. For instance, individuals and HUFs without income from a business or profession may file an ITR 2. Similarly, an individual has the option of selecting ITR1 or ITR4. You must select “Proceed with ITR1” here.
• The following phase will question why you filed returns above the basic exemption limit or because of the seventh Section 139 provision (1). According to the clause, a person is eligible to file income tax returns if their total annual deposits in one or more current accounts exceed Rs. 1 crore, they spend more than Rs. 2 lakh on travel abroad, or they pay more than Rs. 1 lakh in power bills. Make sure you select the appropriate choice.
• Enter the information for your bank account. Pre-validate your bank account information if you have already submitted it.
• After that, you will be taken to a new page where you can file your income tax taxes. There will be a tonne of information already filled out on the website. Verify them to ensure that all the information is accurate. Verify and check the summary of your returns.
• Verifying your returns is the last step before sending a paper copy to the Income Tax Department. The verification procedure must be followed.

Due Dates for Filing ITR

You must be aware of the due dates for filing your ITR. The following table lists all the dates.

Due Date	Nature of Compliance	Compliance Particulars	Documents
15 June 2022	Advance Tax	First instalment for the financial year 2022-23	Challan No./ ITNS 280
31 July 2022	ITR filing	ITR filing for FY 2021-22	ITR Application Form
15 September 2022	Advance Tax	Second instalment	Challan No./ITNS 280
30 September 2022	Tax audit report	Tax audit report for FY 2021-22	Form 3CA/3CB/3CD
31 October 2022	Transfer Pricing Report	Submission of reports for FY 2021-22	Form 3CEB
31 October 2022	ITR filing	ITR filing for FY 2021-22	Applicable ITR Form
31 November 2022	ITR filing for transfer pricing cases	ITR filing for FY 2021-22	Applicable ITR Form
15 December 2022	Advance tax	Revised return for FY 2021-22	Revised return
15 March 2023	Advance tax	Fourth instalment for FY 2022-23, Single and final instalment for taxpayers opting for presumptive taxation scheme	Challan No./ITNS 280

Note: The CBDT may extend the deadlines.

How to check ITR status online?

To know the status of your income tax return online, you must follow the instructions given below.

Pre-Login

• Visit the home page of the e-Filing portal.
• Get to Income Tax Return (ITR) Status by clicking.
• Enter your acknowledgement number and a working mobile phone on the Income Tax Return (ITR) Status page before clicking Proceed.
• Click Submit, then enter the 6-digit OTP sent to the mobile number you provided in Step 3.

Post-Login

• Use your current user ID and password to log into the e-Filing site.
• To see submitted returns, select e-File > Income Tax Returns.
• You can view every return you filed on the View Filed Returns page. The ITR-V Acknowledgement, uploaded JSON (via the offline programme), the entire ITR form in PDF, and the intimation order can all be downloaded (by using the options on the right-hand side).
• To explore the return’s life cycle and any associated action items, click on the ‘View Details’ option.

Why should I file my Income Tax Return?

As already bolted down, income tax return filing is compulsory. There are several reasons why a taxpayer should file an IT return. These factors are explained below.

• It accelerates the loan process. A lender is required to submit income proof. This is where the ITR swoops in, wearing a cape, and saves the hassle of collecting various documents for income proof.
• It allows you to claim carried forward losses suffered under “Capital Gains” or “Profits and Gains from Business or Profession” to the following fiscal year.
• If your employee withholds tax from paychecks or your contract calls for TDS, you can claim a deduction for it by completing your income tax return for the year. 
• It allows you to contribute to the growth of the Indian economy.
• You will receive help for your visa or credit card application state as it will serve as income proof.

Latest Updates Regarding Filing of Income Tax Return 

The Income Tax department has set 31st July as the last date to file for Income Tax Returns. Find below the following updates an individual must know before they start their e-filing process.  

Forms Available for Filing on Portal	Form 26A, Form 27BA, Form 10BD, and Form 10BE
E-filing Enabled	Tax Audit Report Form 3CA – 3CD for 2022-23.
Aadhaar Pan Linking Date	Extended till 31st 2023 pending payment fee of Rs 500/-
e-Pay Tax Service	Provision to make the payment online on the e-Filing Website through Kotak Mahindra Bank and Federal Bank. The taxpayer can also avail of the option to make payments offline or through net banking with the abovementioned banks.

Also read: Income Tax Slabs and Rates