Government's Latest Announcements for Online Filing of ITR
Updated: Jul 12
In the depth of tax season, the government persistently issues new announcements. Trust this blog to provide you with the latest updates.
The Excel utilities for ITR 1, 2, and 4 for the Assessment Year 2023-24 were previously made available. However, it is important to note that the online forms differ from the Excel utility. In the Excel utility, taxpayers are required to download the form, fill it with the necessary information, and then upload it on the e-filing website.
Announcement: Income Tax Return (ITR) filing for Assessment Year 2023-24 has been simplified through the introduction of online filing using ITR forms ITR-1 and ITR-4 on the e-filing portal. These forms come with the added advantage of prefilled data, making the filing process more convenient for taxpayers.
The ITR-1 form is tailored to cater to resident individuals, excluding those who fall under the category of not ordinarily resident, and whose total income does not surpass Rs 50 lakh. This form gets applicable to individuals who derive their income from diverse sources, including salaries, a solitary house property, other sources such as interest earnings, and agricultural income up to Rs 5000.
The ITR-4 form serves as a comprehensive tax filing option designed specifically for individuals, Hindu Undivided Families (HUFs), and non-LLP firms who maintain their residency status and possess an income of up to Rs 50 lakh. This form applies to those whose income is derived from business and profession, computed following sections 44AD, 44ADA, or 44AE, along with an allowance for agricultural income of up to Rs 5000.
The ITR-2 form gets utilized by enterprises and professionals who have chosen the path of presumptive taxation, as well as individuals whose annual income does not surpass Rs 50 lakh. This form provides a suitable avenue for filing taxes for those falling within these categories, ensuring compliance and accuracy in reporting their financial matters.
While paper returns are still acceptable for specific groups of taxpayers, such as senior citizens receiving non-business income, we must note that online filing of ITR is highly recommended for its efficiency and expeditious processing. Embracing the convenience and effectiveness of online filing ensures a smoother experience, facilitating prompt submission and streamlined processing of tax returns.
Let us look into the steps to conduct online filing of ITR at the centre of offline ITR-1 and ITR-4 Excel utilities.
Visit the official website incometax.gov.in.
Access the "Login" section and provide your User ID (PAN/Aadhar/Other User ID) along with your password, then proceed by clicking "Continue".
Next, navigate to the "File Now" tab located beneath "File your return for the year ended on 31-Mar-2023".
Pick the assessment year as 2023-24 (Current A.Y) and select "Section 139(1) – Original Return" as the filing type. Additionally, indicate whether you fall under the category of being audited under section 44AB or a political party as per section 13A. Furthermore, select the appropriate ITR type, either ITR-1 or ITR-4, based on your circumstances, and click "Continue".
Post which, you will need to proceed to upload your ITR form, ensuring that it is in the .json file format. The Income Tax e-filing website permits the submission of filled ITR forms prepared using the offline Excel-based utility provided by the CBDT. You can acquire the offline utility for ITR from the income tax website.
Once the ITR form in .json format has been successfully uploaded, click on "Proceed to verification" to fulfil the remaining formalities for the ITR filing process.
Before we dive into the various components of online filing of ITR, let's explore the fundamental aspects of ITR.
Online filing of the Income Tax Return (ITR) is a vital part of the government's revenue generation system, embodying the essence of taxation. It encompasses the obligation for Indian citizens, organizations, and firms to declare their annual earnings, thereby subjecting them to the imposition of income tax in a given fiscal year. This tax liability extends to diverse sources of income, such as salaries, dividends, interest, capital gains, and other profits. To navigate the online filing of the ITR seamlessly, it is imperative to acquaint oneself with the diverse ITR forms intricately linked to the entire process. These forms, meticulously outlined by the esteemed Central Board of Direct Taxes (CBDT) on an annual basis, serve as indispensable guidelines for taxpayers to adhere to.
ITR-3 is designated for Hindu Undivided Families (HUFs) and individuals who derive income from a business or profession as sole proprietors.
ITR-5 applies to entities such as LLPs (Limited Liability Partnerships), firms, AOPs (Association of Persons), artificial juridical persons, BOIs (Body of Individuals), registered societies, private discretionary trusts, local authorities, and cooperative societies. However, individuals eligible for ITR-7 are not to employ this form for filing their income tax returns.
ITR-6 are attuned to companies that do not seek tax exemption under section 11.
ITR-7 is particularly prepared for individuals and companies obliged to file income tax returns under sections 139(4E), 139(4F), 139(4D), 139(4C), 139(4B), and 139(4A) of the Income Tax Act, 1961.
Eligibility to online filing of Income Tax Returns (ITR) encompasses a diverse range of individuals and entities, comprising those falling within specific criteria and obligations.
Individuals with an annual income of Rs. 5 Lakhs or more.
Residents of India who possess assets located outside the country.
Entities such as firms (subject to section 44AB guidelines), cooperative societies, BOIs, AOPs, artificial juridical persons, and local authorities (ITR 5).
Assesses are obligated to submit returns under section 139 (4B) (ITR 7).
Indian residents with signing authority over foreign accounts.
Individuals claiming relief under sections 90 or 90A, or deductions as per section 91.
All companies.
For submission, a comprehensive audit report is required under sections 10(23C) (via), 10(23C) (VI), 10(23C) (v), 10(23C) (IV), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E, or 115JB. As per Section 11(2) (a), notice must be given to the assessing officer by the return filer.
Tax Slabs for AY 2023-24
Pertaining to the individuals, whether they are residents or non-residents, who are below 60 years of age at any point during the previous year, the tax slabs are as follows:
The old tax regime features different income tax slabs and rates. Individuals with income up to ₹2,50,000 are exempt from tax. For income between ₹2,50,001 and ₹5,00,000, a 5% tax gets applied on the amount exceeding ₹2,50,000. In the income range of ₹5,00,001 to ₹10,00,000, a fixed amount of ₹12,500 gets levied along with a 20% tax on the income exceeding ₹5,00,000. For income above ₹10,00,000, a fixed amount of ₹1,12,500 gets charged plus a 30% tax on the income exceeding ₹10,00,000. These tax slabs ensure a progressive approach where individuals contribute proportionally based on their income levels.
New tax regime:
The income tax slabs under the current tax regime are structured as follows:
1) Up to ₹2,50,000: No tax is applicable.
2)₹2,50,001 to ₹5,00,000: 5% tax is applicable on the amount exceeding ₹2,50,000.
3) ₹5,00,001 to ₹7,50,000: ₹12,500 plus 10% tax is applicable on the amount exceeding ₹5,00,000.
4) ₹7,50,001 to ₹10,00,000: ₹37,500 plus 15% tax is applicable on the amount exceeding ₹7,50,000.
5) ₹10,00,001 to ₹12,50,000: ₹75,000 plus 20% tax is applicable on the amount exceeding ₹10,00,000.
6) ₹12,50,001 to ₹15,00,000: ₹1,25,000 plus 25% tax is applicable on the amount exceeding ₹12,50,000.
7) Above ₹15,00,000: ₹1,87,500 plus 30% tax is applicable on the amount exceeding ₹15,00,000.
Pertaining to the individuals who are residents or non-residents and fall between the age of 60 and 79 years at any point during the previous year, the tax slabs are as follows:
Old Tax Regime:
1) Up to ₹3,00,000: No tax is applicable.
2) ₹3,00,001 to ₹5,00,000: 5% tax is applicable on the amount exceeding ₹3,00,000.
3) ₹5,00,001 to ₹10,00,000: ₹10,000 plus 20% tax is applicable on the amount exceeding ₹5,00,000.
4) Above ₹10,00,000: ₹1,10,000 plus 30% tax is applicable on the amount exceeding ₹10,00,000.
New tax regime:
1) Up to ₹2,50,000: No tax is applicable.
2) ₹2,50,001 to ₹5,00,000: 5% tax is applicable on the amount exceeding ₹2,50,000.
3) ₹5,00,001 to ₹7,50,000: ₹12,500 plus 10% tax is applicable on the amount exceeding ₹5,00,000.
4) ₹7,50,001 to ₹10,00,000: ₹37,500 plus 15% tax is applicable on the amount exceeding ₹7,50,000.
5) ₹10,00,001 to ₹12,50,000: ₹75,000 plus 20% tax is applicable on the amount exceeding ₹10,00,000.
6) ₹12,50,001 to ₹15,00,000: ₹1,25,000 plus 25% tax is applicable on the amount exceeding ₹12,50,000.
7) Above ₹15,00,000: ₹1,87,500 plus 30% tax is applicable on the amount exceeding ₹15,00,000.
Pertaining to the individuals, whether they are residents or non-residents, who are 80 years of age or older at any time during the previous year, the tax slabs are as follows:
Under the old tax regime, the income tax slabs for individuals are structured as follows:
1) Up to ₹5,00,000: No tax is applicable.
2) ₹5,00,001 to ₹10,00,000: 20% tax is applicable on the amount exceeding ₹5,00,000.
3) Above ₹10,00,000: ₹1,00,000 plus 30% tax is applicable on the amount exceeding ₹10,00,000.
Under the new tax regime, individuals are subjected to different income tax slabs, promoting simplicity and transparency. Let's explore the tax slabs and rates:
1) Up to ₹2,50,000: No tax is applicable, providing a basic exemption.
2) ₹2,50,001 to ₹5,00,000: 5% tax is applied on the amount exceeding ₹2,50,000, encouraging a gradual contribution.
3) ₹5,00,001 to ₹7,50,000: ₹12,500 plus 10% tax is applied on the amount exceeding ₹5,00,000, ensuring a fair share.
4) ₹7,50,001 to ₹10,00,000: ₹37,500 plus 15% tax is applied on the amount exceeding ₹7,50,000, promoting a progressive approach.
5) ₹10,00,001 to ₹12,50,000: ₹5,000 plus 20% tax is applied on the amount exceeding ₹10,00,000, reflecting a higher contribution.
6) ₹12,50,001 to ₹15,00,000: ₹1,25,000 plus 25% tax is applied on the amount exceeding ₹12,50,000, with a higher tax rate for higher incomes.
7) Above ₹15,00,000: ₹1,87,500 plus 30% tax is applied on the amount exceeding ₹15,00,000, ensuring a significant contribution from higher income individuals.
FAQs:
Q) Question: What documents are required to report salary income and claim deductions such as HRA and TDS?
When it comes to reporting salary income, certain documents and records need to be considered. These include rent receipts for claiming House Rent Allowance (HRA) deductions, pay slips that provide information on salary details, and Form 16, which is essential for claiming any applicable Tax Deducted at Source (TDS).
Q) Could you talk about what information and details are required for reporting house property income, including rental income and deductions for home loans?
About reporting house property income, there are specific details and information that need to be provided. This includes the residential address of the property, credentials of co-owners along with their PAN credentials (if the amount exceeds INR 1,00,000 annually) and their respective shares, the interest paid on home loans (which may qualify for deductions up to INR 2,00,000), the date of completion for under-construction properties, and the name of the tenant along with the rental income for rented properties.
Q) What types of income should be reported related to reporting other income, including interest from savings accounts, corporate bonds, tax savings bonds, and post office deposits?
Concerning reporting other income, some sources need to get accounted for. This includes reporting the interest earned from savings accounts, income from interest on corporate bonds and tax savings bonds, and the income earned from deposits in the post office.
Q) What is the usefulness of carrying forward losses from sources like the stock market, mutual funds, properties, or businesses, and how can one utilize this option to reduce tax liability?
You can carry forward those losses to offset them against your income in the next year if you have experienced losses from various sources like stocks, mutual funds, properties, or businesses. This can effectively reduce the amount of tax you owe.
Q) Could you specify the deadline for individuals with audit cases not involving transfer pricing for the financial year 2023-24?
To meet the deadline for filing Income Tax Returns (ITR) for the financial year 2023-24, individuals with audit cases not involving transfer pricing should submit their returns by October 31, 2023, utilizing the appropriate ITR form.