Economics

How to File ITR: Complete, reliable and accurate guidelines

February 15, 2023

how to file itr

What is ITR (Income Tax Return)?

ITR stands for Income Tax Return. It is a form used by Indian taxpayers to declare their income and calculate the tax liability. It is important to file the ITR accurately and on time in order to avoid penalties and other legal issues. The ITR is also used to claim tax refunds and to avail certain tax benefits.

Filing Income Tax Returns (ITR) is an important part of the Indian tax system, and is a mandatory process for individuals with taxable income. If you are one of them, then it is important to understand the process of filing ITR and take necessary steps to complete it accurately.

Guidelines to file ITR

Here is a simple guide on how to file your ITR:

1. Gather the necessary documents:

Before you start the process, you will need to gather all the relevant documents like Form 16, investment proofs, bank statement, etc.

2. Choose the correct ITR form:

Once you have all the necessary documents, you will need to choose the correct ITR form. The different ITR forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7. This will depend on the type of income you have, so make sure to choose the correct one.

ITR 1

ITR 1 is a form used for filing an Income Tax Return in India. It is used by individuals and Hindu Undivided Families (HUFs) who have an annual income of up to Rs. 50 lakhs and do not have any income from profits and gains of business or profession. This form can be filed both manually and electronically. The form can be filled in either English or Hindi. It requires details such as name, address, Permanent Account Number (PAN), details of income from salary, house property, capital gains, other sources, and tax deductions.

ITR 2

ITR 2 is the Income Tax Return form for individuals who are not eligible to file ITR 1. It is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from salary, one house property (excluding cases where the loss is brought forward from previous years), other sources (excluding winning from lottery and income from race horses). Individuals who are partners in a partnership firm and filing ITR 2 are not eligible to claim any deduction under Section 80 while computing their total income.

ITR 3

ITR 3 is a form used by individuals who have a total income of up to Rs. 50 lakhs in a financial year and who are carrying out business or profession. It is a self-assessment tax return form and is important for individuals who are liable to pay taxes on their income. The form requires an individual to provide details of their business income and expenses, capital gains, and income from other sources such as rental income, interest income, etc.

It also requires details of any deductions and tax exemptions available to the individual. Once the form is filled and submitted, the individual can use it to calculate their tax liability.

ITR 4

ITR 4, also known as Sugam, is a simplified tax return form for Individuals and HUFs who have opted for the presumptive income scheme under section 44AE, 44BB or 44BBB of the Income Tax Act, 1961. This return form is used to file income tax returns by individuals and HUFs who have an income from a profession or business and have opted to pay taxes under the presumptive income scheme.

This form is most suitable for taxpayers who have a turnover or gross receipts of up to Rs. 2 crore in the financial year. It is a simplified form and does not require detailed information about the income, deductions and investments. It requires the taxpayer to declare all incomes and deductions and then compute the tax payable. It is important to note that only taxpayers who have opted for the presumptive income scheme can use ITR 4.

ITR 5

ITR 5 is the form for individuals and Hindu Undivided Families (HUFs) who are required to file their income tax returns. It is a comprehensive form which requires taxpayers to disclose their income from salary, house property, capital gains, business and profession, etc. and the taxes they have paid on them. It is important to note that ITR 5 cannot be filed by an individual who is required to file ITR 4, ITR 6 or ITR 7. Individuals must ensure that they select the correct form while filing their income tax returns.

ITR 6

ITR 6 is the Income Tax Return form used by certain taxpayers in India to file their income tax returns. It is used by individuals and Hindu Undivided Families (HUFs) who are not claiming any exemptions or deductions under the Income Tax Act, 1961. It is also used by individuals and HUFs who are engaged in a business or profession and filing their returns on a presumptive basis.

The form must be filed online using the income tax website. The taxpayer must provide information pertaining to their income and taxes paid on it. Once the form is completed and submitted, the taxpayer will receive an acknowledgement number which can be used to track the status of their return.

ITR 7

ITR 7 is a form used for filing tax returns for individuals and Hindu Undivided Families (HUFs) who are not carrying out any business or profession under any proprietorship. This form can be used for claiming deductions related to house rent allowance, agricultural income, and tax-saving investments. It can also be used for disclosing income from other sources such as interest from bank deposits, income from capital gains, and income from foreign sources.

A person eligible to file ITR 7 must have the following documents: Permanent Account Number (PAN) Card, Aadhar Card, Bank passbook, Form 16/16A, details of investments made, interest certificates, and other income details.

3. Fill the ITR form:

After selecting the correct form, fill in all the required details like your personal information, income details, deductions, etc.

4. File your ITR:

Once you have filled the form, you can file your ITR either online or offline. You can opt for the e-filing option, which is the easiest and most convenient way to file your ITR.

5. Make the payment:

When filing the ITR online, you will need to make the payment for the taxes you owe. This can be done through net banking or debit/credit cards.

6. Submit the form:

Once the payment is done, you will need to submit the ITR form. This can be done online or offline, depending on the method you have opted for.

7. Receipt of ITR-V:

Once the ITR is filed, you will receive an ITR-V (acknowledgement) on your registered email ID. You need to sign this document and send it to the Income Tax Department.

8. Confirmation:

After the ITR-V is received by the Income Tax Department, you will get a confirmation email regarding the successful filing of your ITR.

With the help of this guide, you can easily file your income tax returns without any hassle. Make sure to keep all the relevant documents and details ready before you start the process, and keep a copy of the form for future reference.

Benefits of filing ITR

Filing ITR allows taxpayers to receive various benefits. It helps to keep track of income and expenses, provides an audit trail, and helps to reduce the risk of tax fraud.

Additionally, it can help to reduce the amount of taxes owed, claim tax deductions and credits, and provide a comprehensive picture of financial health.

Filing ITR can also help to lower the amount of interest paid on taxes, and provide financial protection in the event of an audit.

Furthermore, it can help to identify potential tax savings and investment opportunities that may be beneficial for future financial planning.

Deadlines for ITR filing ITR For Assessment Year 2023-24

The deadline for filing ITR assessment year 2023-24 depends on the type of ITR form you are filing. Generally, the deadline for filing ITRs is July 31st, 2023. However, taxpayers who are required to get their accounts audited have to file their returns by 30th September 2023. Moreover, taxpayers who are required to submit their TDS returns have to file their returns by 31st May 2023.

To file ITR online In India click here

FAQs about ITR

• What is ITR and how do I file it?

ITR stands for Income Tax Return, and it is a form that is required to be filed annually by taxpayers in India. This form is used to declare the tax that you owe to the government, and it is also used to calculate the refund that you may be due. Filing an ITR can be done either online or through a physical form. To file online, you will need to register at the Income Tax Department’s e-filing website, then follow the instructions to fill in the form and submit it. Alternatively, you can download the form, fill it out, and post it to the Income Tax Department.

• What documents are required for filing ITR?

In order to file an Income Tax Return (ITR), the documents required are Form 16, bank statements, investment proofs, and other documents related to income and deductions. Additionally, the individual must also possess a valid PAN card, Aadhar card, valid mobile number, and email id.

• What is the process of filing ITR?

The process of filing ITR is simple and straightforward. It involves collecting the necessary documents, completing the forms, and submitting them to the Income Tax Department. Depending on your type of ITR, the documents required can vary.
Generally, it includes identity proof such as PAN card, Bank account details, Investment proofs, Salary slips, etc. After collecting all the documents, the next step is to fill up the ITR form. For this, you can use the online e-filing system or file manually. Once the form is filled up and submitted, the Income Tax Department will process the ITR and issue you a confirmation.

• What are the deadlines for filing ITR?

The deadline for filing ITR for assessment year 2023-24 is 31st July, 2023 for individuals who are required to submit their ITRs in paper form. For those filing ITRs electronically, the last date is extended to 30th September, 2023. However, taxpayers who are required to get their accounts audited need to file their ITRs on or before 30th November, 2023.

• What are the penalties for not filing ITR?

The penalties for not filing ITR depend on the amount of income earned during the financial year. If the income earned during the financial year exceeds the maximum amount that is not chargeable to tax, then a penalty of up to Rs 10,000 may be imposed. If the income is more than the maximum amount, then a penalty of up to Rs 5,000 may be imposed. Additionally, if the ITR is filed after the due date, then a late filing fee of up to Rs 10,000 may be imposed.

• What are the benefits of filing ITR?

The filing of ITR has multiple benefits. It helps to keep a track of your income, taxes paid and refunds due, if any. It also helps to provide the Income Tax Department with an insight into your financial transactions. Filing ITR also helps to get access to government loans and schemes. Finally, it also helps in planning your future investments.

• How do I check the status of my ITR?

You can check the status of your ITR by visiting the Income Tax Department’s website and logging in to your account. You can also use the e-filing portal to check the status of your ITR. Additionally, you can use the Acknowledgment Number to track the status of your ITR. The Acknowledgement Number is received after the successful filing of the ITR.

• How do I dispute an ITR filing?

If you need to dispute an ITR filing, you should first contact the agency or department that filed the return. They may be able to help you resolve the issue. If you are unable to resolve the issue, you may need to file a formal dispute with the relevant tax authority. Depending on the jurisdiction, this may involve filing a written complaint or providing additional evidence to support your dispute.

• How do I rectify errors in my ITR filing?

If you have made a mistake while filing your ITR and need to rectify it, you can do so by filing a revised return. To file a revised return, log in to the e-filing portal of the Income Tax Department and click on the “Submit Return/Revise Return” option. Select the assessment year and ITR form for which you want to revise the return. Upload the revised return and submit it. You will then receive an acknowledgement for the revised return. Keep this document safe for future reference. Once the revised return is accepted by the tax department, your ITR will be rectified.