ITR for assessment year 2023-24: An income tax return or ITR is the annual account of your income and investments that are shared with the government for tax purposes. It is mandatory to apply if your income exceeds Rs 2.50 lakh in a year. The ITR is submitted at the beginning of the new year for the previous fiscal year. For example, ITR for 2022-23 (fiscal year) is submitted in 2023-24 (assessment year), from 1 April to 31 July. Although online ITR submission or e-submission has not started yet, you can use offline ITR tools.
Radhika Viswanathan of Deloitte Haskins & Sells LLP explains what you should pay attention to when filing the income tax return for the assessment year 2023-24.
Online ITR vs Offline ITR: Which One Is For You?
The income tax department released the offline forms ITR-1 and ITR-4 last week. The Excel tools of these ITR forms for AY 2023-24 are available for archiving.
Radhika Viswanathan of Deloitte Haskins & Sells LLP: “Online or offline ITR is not an arbitrary choice, but depends on the taxpayer’s situation and associated factors.”
She added that the online mode will be faster if all the details are readily available and the taxpayer is comfortable working directly on the tax return portal. On the other hand, an offline utility would be better if there are multiple streams of information over different time periods – here one can add as and when the details are available. “Internet connectivity and the amount of data to be entered must also be considered.”
“Paper returns are accepted for a limited number of taxpayers, such as very seniors with non-business income. However, for effective and faster processing, online submission is preferable,” said Viswanathan.
In the offline method, taxpayers need to download the relevant form, fill it out and then upload it on the department’s portal. However, in the online form, taxpayers can directly enter and submit information about their income on the income tax portal. In both modes, the forms must be verified by the taxpayer.
ITR return FY23: what taxpayers should be aware of
Viswanathan said taxpayers should file their income tax returns on time to avoid last-minute rush or delays.
“Taxpayers must ensure that the information, which is automatically filled in, is correct and complete before submitting the tax return form. Form 26AS (tax credit statement) and annual information return (AIR) are two data sources that must be reviewed in detail before finalizing the tax return,” she said.
Who must submit ITR?
Businesses and individuals earning more than the income tax exemption limit are required to file an income tax return under the Income Tax Act. Currently, persons earning more than Rs 2.5 lakh in a year are required to submit the annual ITR.
Salaried workers need Form 16 issued by their employer to easily file their ITRs. The last date for employers to issue Form 16 is June 15 and the last date to file ITR for taxpayers whose accounts are not required to be audited is July 31, 2023 for AY2023-24 or FY2022-23.
Apart from this, companies that have earned an income (profit or loss) in the past financial year must file the ITR.
What are ITR-1 and ITR-4 forms?
The Income Tax Department has released offline tools for ITR-1 and ITR-4 forms. There are 7 ITR forms for different taxpayers.
Also Read: ITR 1 to ITR 7, Have you selected the right ITR form for AY 2022-23?
ITR 1 is for resident persons (other than those who are not ordinarily resident) with a total income of up to Rs 50 lakh, with income from salaries, home ownership, other sources (interest etc.) and agricultural income up to Rs 5,000.
ITR 4 is for resident persons, HUFs and companies (other than LLP) with total income up to Rs 50 lakh and income from business and occupation calculated under sections 44AD, 44ADA or 44AE and agricultural income up to Rs 5,000.
Read all the latest business news, tax news and stock market updates here
