Income Tax Return (ITR) - How to File ITR Return for FY 2022-23
Income Tax Return (ITR) - How to File ITR for FY 2022-23
Tax is one of the primary sources of revenue for the government. Income tax applies to individuals, businesses, and organizations whose income or profit exceeds a certain threshold in a fiscal year. The earnings eligible for taxation can be from various sources of income like salary, capital gains, interest, dividends and others. Thus, an income tax return becomes a reasonable way to justify one's income.
Filing income tax can be done through online and offline modes. The Income Tax Department is taking proactive measures to make the overall process accessible, transparent, and understandable. Thus, it has taken numerous steps in recent years to make the online process prudent. As a result, the online process is not only easy for the taxpayers regarding ease of filing and time-saving, but it is also easy for the department to administer and make the process more compliant.
What is ITR?
An income Tax Return, commonly known as ITR, is a form through which a taxpayer can declare details of his income earned from different sources on which he is liable to pay taxes. The taxpayer can declare his earnings, expenses, investment, deductions, etc., through this form. The Income Tax Department makes it mandatory for every individual with an annual income of more than ₹2.5 lakhs to pay taxes.
The income tax return filing is done to report the income during a fiscal year. However, there may be other reasons for ITR filing. These may include claiming an income tax refund, tax deductions, carrying forward losses, etc.
Importance of Income Tax Return Filing
For many individuals, income tax filing can be tedious; however, as a responsible citizen, you must mandatorily file for it. Here are some of the benefits of ITR filing.
As a responsible citizen, you contribute to the nation's growth, as the tax you pay is used to build infrastructure, construct roads, avail medical and education facilities etc.
It acts as proof of income when you apply for a loan or during VISA processing for going abroad.
It acts as authenticated evidence of your earnings.
When starting a new business or raising funds, an ITR helps determine the business's financial stability and profitability.
Who Should File an Income Tax Return?
Every Indian resident and non-resident (NRI) has to mandatorily do ITR filing if his total income exceeds the basic exemption limit. The exemption limit under the old regime is ₹2.5 lakhs for individuals below 60 years, ₹3 lakhs for individuals between 60 and 80 years and ₹5 lakhs for individuals above 80 years. The total income should be earnings from all sources like salary, house property, business income, capital gains, or any other taxable income. From this, total income deductions and exemptions must be reduced.
Apart from the above criteria, in the below situations, resident individuals must compulsorily file for a return irrespective of their income threshold.
Individuals who are beneficial owners of any asset located outside the country.
Individuals having financial interests in entities located outside the country.
Individuals who are beneficiaries of assets located outside the country.
Additionally, as per the new rule 12AB, filing of returns is compulsory under the circumstances where the limitations in the previous year exceed the following:
Business Turnover of ₹60 lakhs,
Professional Receipts of ₹10 lakhs,
TDS & TCS of ₹25,000, or
Saving Bank Accounts deposits is equal to or more than ₹50 lakhs.
E-filing of Income Tax Return
E-filing of income tax returns means filing for your IRT online. E-filing is convenient and quick and can be done in the comfort of your home or office. However, it is always advised to keep the required documents handy before starting the e-filing process.
Documents Required for Income Tax Return Filing
For the E-filing of returns, the below documents are needed:
Form 16A, 16B, 16C
Salary Pay slips
Bank account statements
Proof of tax-saving investments
How to File ITR?
You can complete your ITR filing by visiting the Income Tax Department's official website. To file ITR online, you must first complete the registration process. The filing portal has been recently updated, making the e-filing process quicker and easier.
Below is the process to file ITR for FY 2022-23.
Getting Ready for E-filing
Step 1: Calculate income tax liability
Calculate your total income for all the sources per the prescribed Income Tax rules. Then, claim deductions if applicable. Also, consider taking into account TDS, TCS and advance tax paid. This will give you your tax liability.
Step 2: Get TDS certificates and Form 26AS
Form 26AS provides a summary of the TDS and tax paid during the financial year. In addition, the TDS amount can be summarized from the TDS certificates of all four quarters.
Step 3: Choose the correct IT form
It would be best to determine which ITR form applies to you. Only two forms, ITR 1 and ITR 4, are available for online filing. The rest of the forms must be uploaded offline.
ITR E-Filing Process
Step 1: Visit the official e-filing portal of the Income Tax Department.
Step 2: If you are a new user, you must register yourself by clicking the 'Register' button. If you are an existing user, click on 'Login'.
Step 3: Once you log in to your account, go to the e-filing tab and select 'File Income Tax Return'.
Step 4: From the list, select your applicable category as a taxpayer, like individual, HUF etc.
Step 5: Select the applicable ITR form.
Step 6: Provide details of your bank account. If you have already provided the details, you must validate the same.
Step 7: You will now be redirected to a new page containing pre-filled details of the ITR. Check the mentioned details carefully and make changes if needed. Once you are satisfied with the information mentioned, confirm the same.
Step 8: After confirmation, convert the file to XML format and upload the same on the e-filing portal. Alternatively, you can send a physical copy to the Income Tax Department.
Step 9: For uploading the file, provide necessary details such as PAN, assessment year, ITR form number and submission mode. The submission mode must be selected as 'Upload XML'. Then select 'Submit'.
Step 10: Select one of the available verification modes to complete the process.
ITR filing due dates for FY 2022-23
|Category of Taxpayer
|Last Date to File ITR for FY 2022-23 (unless extended)
|Individual / HUF/ AOP/ BOI (no auditing required)
|31st July 2023
|Businesses (auditing is required)
|31st October 2023
|Businesses that need transfer pricing reports
|30th November 2023
|31st December 2023
|31st December 2023
What Will Happen if I Miss Income Tax Return Filing Due Date?
You may face huge penalties and severe consequences if you have taxable income and do not file for a return by the due date.
Below are the penalties under Section 234F that will be levied if you delay filing the ITR for FY 22-23.
|ITR filing due date
|Penalty to be levied for income below ₹5 lakhs
|Penalty to be levied for income above ₹5 lakhs
|Before 31st July 2023
|From 1st September to 31st December 2023
|From 1st January 2023 to 31st March 2024
If the ITR is filed after the due date, an interest of 1% per month or part month on the unpaid tax month under Section 234A will be levied.
If you have incurred a loss from shares, mutual funds, properties, or businesses, you can carry forward them for adjustment to the following year. This can help in reducing tax liability. However, it must be noted that loss adjustment is allowed if you declare these losses in your ITR and file it with the Income Tax Department before the due date.
If you still need to file the ITR by the due date, you can still file for a belated return. The due date for filing the belated return is typically 31st December of the assessment year until extended by the government. You, however, will have to pay the late fee and interest rate and are not allowed to carry forward the losses for adjustment.
Tax Deductions with Health Insurance
For any individual taxpayer, tax savings is one of the crucial aspects of tax planning. Thus, the government has made provisions for deductions and exemptions under the old tax regime.
Health insurance is one of the common avenues wherein taxpayers can achieve dual advantage – financial security and tax saving. Due to the numerous benefits of health insurance plans, this tool has garnered immense popularity recently.
Buying a need-based medical insurance plan is no longer a cumbersome task. With Tata AIG, you can buy health insurance online in just a few simple steps. Not just that, you can compare the plans, calculate premiums online and also initiate claims online in simple and hassle-free processes.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
Can I do my ITR filing without Form 16?
Can I do my ITR filing without Form 16?
You can file Income Tax Returns (ITR) without Form 16.
How can I get an income tax return copy online?
To get your income tax return copy online, follow the below steps:
Step 1: Visit the official income tax e-filing portal and log in with your credentials.
Step 2: Enter your user ID, password, and security code for successful login.
Step 3: Click on 'View Returns/ Forms
Select 4: Select an option as "Income Tax Returns" and the relevant assessment year and click on submit.
Select 5: On the next page, there will be a display of all the details of your e-filed returns.
Select 6: Click on the ITR-V/ Acknowledgement Number you want to download
Select 7: ITR V PDF file will open, which can be downloaded on your device
What if I make a mistake while filing ITR? Can I make changes to it?
Yes, if you make a mistake while filing your ITR, you can file a revised ITR to rectify it. This provision is allowed under Section 139(5) of the Income Tax Act. According to this provision, you can revise a tax return 3 months before the relevant Assessment year for which the return is filed. Thus, a revised or belated return can be filed by 31st December of an assessment year.
My employer deducts tax from my salary. Do I still have to file for returns?
Yes, even though your employer deducts TDS from your salary, you must still file your tax return if your income exceeds the basic exemption limit of ₹2.5 lakhs. Moreover, you are not eligible to claim any excess taxes paid if you don't file a tax return.
Is it mandatory to do an income tax return filing for income less than ₹5 lakhs?
If your income exceeds ₹2.5 lakhs, you must file for an income tax return. Thus, if your income is ₹5 lakhs, you must file for a return even if there is no tax to be paid.