As a taxpayer you need to report your tax liability accurately and timely, in order to avoid any kind of trouble with the Income Tax Department. To be eligible to claim a refund you need to be mindful of the income tax return deadline. The due date depends on the taxpayer as well. For example, as a salaried individual, you need to file your taxes before 31st July 2023, whereas for corporations the date to file returns is 31st September 2023. You also need to know that missing the income tax return deadline can have serious consequences. You will not only have to pay a penalty but also lose out on a number of other advantages such as carrying forward losses, opting for the new regime etc.
Income tax return means filling out the income tax return form in a prescribed manner that shows your income, expenses, and other earnings and requests the Income Tax Department to refund the overpayment of taxes, if any.
According to the Income Tax Act, ITR filing is mandatory for individuals whose annual income exceeds a specified limit. The limit is Rs 2.5 Lakh for those below 60 years, Rs 3 Lakh for senior citizens below 80 years and Rs 5 Lakh for super senior citizens above 80 years. Companies and firms must file ITR if they incur income or loss in a financial year.
If your total income for a financial year is less than the basic exemption limit, it is not compulsory for you to file an ITR. The exemption limit will be dependent on the tax regime that you have chosen. However, even if you have no tax liability, which is called a Nil ITR, you should still file an ITR. It is a prudent thing to do as it brings your name on record for the income that you have received for that particular financial year.
Apart from that filing an ITR regularly puts you in good standing. It makes getting loans and credit cards easier, claiming a TDS refund is simpler, and it can also be a helpful document when applying for a scholarship or an international visa.
The Union Budget 2023, increased the basic exemption limit to Rs 3 lakh, which was Rs 2.5 lakh earlier. However, if you choose the new tax regime, the limit is Rs 7.5 lakh, as you will be eligible to claim rebates and deductions.
One can file tax returns through either the online or offline mode. One can also seek assistance from a professional. Before filing ITR, one is required to obtain Form 16, also called the income tax return forms, from the employer and have all the investment proofs.
One should also know the process of how to file ITR through offline mode. Those filing ITR through this method should furnish their ITR returns in physical paper form to the Income Tax Department.
Note: For individuals (including HUF members) with income below Rs 5 Lakh, who’re not eligible to get a refund, as well as super senior citizens have the option to file ITR through offline mode during a financial year.
The government has made a taxpayer’s life easy with the introduction of the e-filing system. The Income Tax (I-T) Department enables taxpayers to conveniently file ITR through an online portal. This minimises paperwork and makes the process error-free.
Gone are the days when filing income tax was a daunting task and people had to visit the Income-Tax Department to file the return. In order to ease the process of filing income tax, the government of India introduced the e-filing mode. When the tax filing process is done online by filling up an online form for a particular year, it is called e-filing. You can do it either by using Digital Signature Certificate (DSC) or ITR Verification form or via an Aaadhar card. It is a simple and quick process and a blessing for taxpayers.
E-filing of income tax returns is important to taxpayers for below reasons:
Let’s check out the simple steps you need to follow for e-filing your tax return:
Now under part A: You’ll have to fill in basic personal information such as Name, PAN Number, Aadhar Number, Address, Email ID, and so on.
Once you fill the income tax return before the due date, the next step is to check your ITR status. The same can be done in a few simple steps:
Every taxpayer should be mindful of the income tax return deadline. As a taxpayer, you should also know that apart from the claims in Form 16, there are other ways to make higher refunds. Here are some things that you can do to maximise your ITR refund:
Make sure you remember the ITR due date and file the ITR timely to avoid any delays or late fee charges and penalties. As mentioned above, the income tax return deadline or the ITR due date for AY2023-24 is July 31, 2023.
With the introduction of the new tax regime you’ll have the leverage to choose between the new and old regime. Depending on your income, the deductions and the exemptions you wish to avail, you’ll have to decide whether the new or the old regime is more suitable to your needs.
Keep in mind that if you do not select one, then by default, you will be directed to the new regime.
By identifying the exemptions and deductions that you can claim, you can significantly reduce your tax liability, and get a higher refund. You can save by investing in:
You can also take advantage of exemptions such as Leave Travel Allowance (LTA), House Rent Allowance (HRA) and gratuity etc.
Bank account validation on ITR e-portal is essential to get the claimed refund. Without a validated account the application will consider null and void.
It is crucial to file the return accurately by ensuring that all the relevant documents and proofs are duly submitted. Any error or misinformation can cause a delay in the ITR processing, and may lead to ITR penalties too.
One should be aware of the last date of filing ITR depending on the category they belong to. For instance, the deadline to file ITR is July 31st of the assessment year, applicable for individuals, Hindu Undivided Family (HUF) members and taxpayers who do not need to get account books audited. Missing the income tax return deadline can attract ITR penalties levied by the I-T Department.
In this way, the filing of income tax can be done in a hassle-free manner when you follow the income tax return deadline. As a dutiful citizen, paying taxes is one of your primary responsibilities.
If you wish to reduce your tax liabilities, you can invest your money wisely and make the most of the tax benefits you are eligible for. for instance, under Section 80D of the Income Tax Act, you can claim tax reduction on health insurance premium. If you do not have one already, the right time is now. Among many other reputed health insurance providers, Care Health Insurance is popular for offering comprehensive coverage through multiple plans. These plans are tailor-made as per your insurance requirements. All you need to do is to explore a bit and get the one that best suits your budget and needs.
Disclaimer: The above information is for reference purposes only. The tax exemptions are subject to the rules and regulations of the Income Tax Act of India 1961.
Published on 28 Sep 2023
Published on 28 Sep 2023
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