Personal Tax Filing

Personal Tax Filing

Personal Tax Filing

E-filing of Income-tax returns is the process of filing Income-tax online. As per the income tax department, income tax returns can be filed through the online method only. However, the super senior citizens filing ITR using Form 1 or Form 4 are allowed to use the offline or paper mode.

ITR stands for Income Tax Return. It is a form or document that individuals, businesses, and other entities use to report their income, deductions, and tax liability to the tax authorities.

The Income Tax Return provides a detailed account of the taxpayer's income from various sources, such as salary, business or profession, capital gains, house property, and other applicable categories. It also allows taxpayers to claim deductions and exemptions available under the Income Tax Act, reducing their taxable income and overall tax liability.

Filing an Income Tax Return is a legal requirement in many countries, including India, where taxpayers are obligated to report their income and pay the appropriate amount of tax to the government. By filing an accurate and timely ITR, taxpayers ensure compliance with tax laws and contribute to the effective functioning of the tax system.

The specific ITR form to be used depends on the nature of the taxpayer's income, the category of taxpayer (individual, company, partnership, etc.), and other relevant factors. Different ITR forms cater to different types of taxpayers and income sources, ensuring the accurate reporting of income and facilitating proper assessment and collection of taxes.

• Excess TDS Claim.li>
• VISA Application.
• Establishing Losses.
• A Reliable Proof of Address.
• Authentic Evidence of Your Earnings.
• For Purchasing High Coverage Insurance.
• A Crucial Document for Loan Application.
• Scholarship Advantages.

Every Individual, including an NRI, must file an Income tax return where Gross Total Income exceeds the basic exemption limit. For both tax regimes, this basic exemption limit is 2.5 lakh for the individual filing income tax return till (FY 2022-23(AY 2023-24). Senior citizens (individuals aged 60 years or above but less than 80 years) and super senior citizens (individuals aged 80 years or above) are required to file an ITR if their gross total income exceeds Rs. 3 lakhs and Rs. 5 lakhs, respectively, in a financial year.

ITR filing is important for those cases also where the income is below the exemption limit for the following conditions:-

• Deposited an amount or aggregate of over Rs.1 crore in one or more current accounts maintained with a bank or a cooperative bank.
• Incurred an aggregate expenditure of over Rs.2 lakh for yourself or any other person for traveling to a foreign country.
• Incurred aggregate expenditure over Rs.1 lakh towards payment of electricity bill.
• The sales turnover of a business exceeds Rs 60 lakh during the year.
• Total professional gross receipts exceed Rs 10 lakh during the financial year.
• Total TDS or TCS exceeds Rs 25,000 during the financial year. This limit is Rs. 50000 for senior citizens.
• The amount deposited in one or more savings accounts is Rs 50 lakh or more during the financial year.

Benefits of E-Filing Your Income Tax Returns

Effortlessly file your tax returns and enjoy a hassle-free tax season with e-filing

Claim Tax Refund

• If you have paid more income tax you are eligible for a tax refund

Avoid Late Filing Fee

• A delay in filing ITR makes you liable to pay a fee of up to 10,000 INR

Obtaining Visa

• Foreign consulates may ask you to furnish your income tax returns for obtaining Visa

Easy Loan Approval

• The income tax return serves as an important document for loan opproval

• ITR-1 - For Salary, IFOS, 1 HP Income (All Income < 50L)
• ITR 02 – Individual/HUF having all income of ITR 1 but >50L, more than 1 HP,
• Capital Gain, Foreign income but not having business profession income.
• ITR 03 – Individual/HUF Having Business/Profession Income
• ITR 04 – Presumptive Income from Business and Profession

Penalties For Not filling ITR On due date

If a taxpayer fails to file their Income Tax Return (ITR) by the due date, they may be liable to pay penalties and interest. The penalties for non-filing or late-filing of ITR in India are as follows:

• Late filing fee: If a taxpayer fails to file their ITR by the due date, they may be liable to pay a late filing fee of up to Rs. 10,000, depending on the delay in filing. The late filing fee for belated ITR, i.e., ITR filed after the due date but before December 31st of the relevant assessment year, is Rs. 5,000. For returns filed after December 31st, the late filing fee increases to Rs. 10,000.
• Interest on tax liability: If a taxpayer has any outstanding tax liability, interest will be charged on the amount due from the due date of filing until the date of payment. The interest rate is currently 1% per month, calculated from the due date of filing until the date of payment.
• Loss of certain benefits: If a taxpayer files a belated return, they may lose certain benefits, such as the right to carry forward losses, etc. And in case of failure to file ITR at all, they will not be able to claim TDS refunds, if any.
• Prosecution: In case of a willful failure to file ITR, the taxpayer may be subject to prosecution under Section 276CC of the Income Tax Act, which can result in imprisonment and/or fine

Once you are done with e-filing of income tax return, you must:-

• Check your inbox for the provided email id. You will receive an intimation for successfully filing your Income Tax Return and ITR-V (Acknowledgement) attached to the email.
• With a new notification, a revised ITR can only be filed if your original ITR is verified.
• Cross Check all figures thoroughly in your filled ITR form or ITR-V for errors, mistakes, etc.
• Verify the income tax return within 30 days of filing, as Income Tax Return is processed only when ITR is verified. If you fail to verify the return, it will not be considered filed or processed by the Department. You will lose out on income tax refund (if any), etc.
• If you have a refund in your tax return, you shall receive the same in your bank account within the next few days. It is better to keep tracking your refund status so that you get all the important updates from the department.

Note: Verifying ITR is an important step. The Income Tax Department will not process your filed Income Tax return unless it is verified . The time limit for verification of Filed Income Tax returns is 30 days. Previously this time limit was 120 days. This new rule is applicable for returns filed on or after 1st August 2022. If you have not verified your tax return, it shall be considered “Invalid,” i.e., null and void. It means that no Income Tax Return has been filed at all.

New Income Tax Slabs For FY 2022-23 (AY 2023-24) as per Budget 2023

As per the Union Budget 2023, a few key changes have been introduced under the new tax regime. The tax slab under the new tax regime has been reduced from 6 to 5, and the basic exemption limit has been raised to Rs. 3 lakh from Rs. 2.5 lakh. These changes will be applicable from 1 April 2023. The slab structure has been revised:-