Income Tax Return: Know These ITR Basics Before It's Too Late

​Income Tax Return​ is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax department. It also allows carry-forward of loss and claim refund from the income tax department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income. These forms can be downloaded from https://www.incometax.gov.in/iec/foportal

It is important for taxpayers to note that the ITR form is filled out correctly and completely and within the due date.

​​​​​​​​​Under the I​ncome-tax law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax law for filing of return of income for the assessment year 2023-24 (i.e., financial year 2022-23) are as follows:

This year, CBDT has notified ITR forms 1-6, as well ITR-V (verification form) and ITR acknowledgement form in advance, a move that will give taxpayers enough time to prepare for relevant disclosures.

CBDT has also made certain changes in ITR-1 form with regard to disclosure under Section 139 (1), which is filed voluntarily by persons having annual taxable income of less than Rs 2.5 lakh. These individuals will not be required to intimate in their ITR forms even if their fixed deposits exceed Rs 1 crore.

What is the appropriate ITR form to use?

If you are not sure which ITR to file, you may select ‘Help me decide which ITR Form’ on the e-filing portal while filing ITR and click ‘Proceed’. Here the system helps you determine the correct ITR, then you can proceed with filing your ITR.

In case you are not aware which ITR or schedules are applicable to you or income and deductions details, your answers in response to a set of questions will guide in determining the same and help you in correct / error free filing of ITR.

How to file the return of income online?

​​​​The Income-tax department has established an independent portal for e-filing of return of income. The taxpayers can log on to https://www.incometax.gov.in/iec/foportal for e-filing the return of income.​

Click here to view the step by step procedure to file Income-tax return online.

What are the benefits of filing your Income Tax Return?

​​​​According to the IT department, filing Income Tax Return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc..

How to file a return of income?

​​​​​​​​​​​​​​​​Return of income can be filed either in hard cop​y at the local office of the Income-tax department or can be electronically filed at https://www.incometax.gov.in/iec/foportal

Do you need to file the income-tax return even when you have paid all the taxes in advance?

​​Filing of Income-tax return for individuals is mandatory for every person whose income (before considering certain exemptions and deductions) exceeds maximum exemption limit.

Before filing your income tax return, here are some important things you should know:

Gather all the necessary documents: Keep all the documents related to your income, investments, and expenses handy, such as Form 16, salary slips, bank statements, TDS certificates, investment proofs, and bills.

Determine your income source: You must know the sources of your income, such as salary, business income, capital gains, or income from other sources.

Choose the correct ITR form: There are different ITR forms for different categories of taxpayers based on their income and income sources. Choose the correct ITR form that applies to you.

Verify the TDS details: Check your TDS (Tax Deducted at Source) details to ensure that the correct amount has been deducted from your income and deposited with the government.

Claim all available deductions: Ensure that you claim all the deductions available under various sections of the Income Tax Act, such as Section 80C, 80D, 80G, etc..

Calculate tax liability: Calculate your tax liability after deducting all the available deductions from your gross total income.

Verify your ITR: After filing your ITR, verify it using the Aadhaar OTP, net banking, or sending a signed ITR-V form to the Income tax department. Verification is mandatory for the processing of your ITR.

Keep a copy of the filed ITR: It is important to keep a copy of the filed ITR as proof of having filed your return.

By following these steps and ensuring that all the necessary information is accurately reported, you can file your ITR smoothly and avoid any penalties or fines.

Taxpayers are advised to check the official website of the income tax department (https://www.incometax.gov.in/iec/foportal/) for more details and it is recommended to seek the assistance of a professional or consult for any clarifications or queries.

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