Income Tax Returns (ITRs) must be filed by July 31 each year for the previous financial year. For FY 2022-23, the due date for filing ITR is July 31 2023, and the new assessment year 2023-24 will start from April 1. Failure to file ITR within the due date attracts a penalty of Rs 5,000, which doubles if the return is filed later. However, if the taxable income is below Rs 5 lakh, the maximum penalty is Rs 1,000.
|Category of Taxpayer||Due Date for Tax Filing- FY 2022-23|
|Individual/HUF/AOP/BOI (where books of accounts not required to be audited)||31st July 2023|
|Businesses (Where Audit is mandatory)||31st October 2023|
|Businesses (Requiring transfer pricing reports)||30th November 2023|
|Revised ITR||31st December 2023|
|Belated ITR||31st December 2023|
The Income Tax department has notified seven different forms for filing ITRs. The seven forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. All individuals who have taxable income or satisfy other prescribed conditions must file an annual income tax return (ITR) within the specified due date. The applicability of ITR forms varies depending on the sources of income, the amount of income earned, and the category the taxpayer belongs to, such as individuals, HUF, companies, etc.
To file ITR, one must select the appropriate form carefully, considering not only the details of income but also the various disclosure requirements prescribed from time to time. For instance, ITR-1 is for individuals who earn income up to Rs 50 lakh and have income from salary, one house property, or other sources. ITR-2 is for individuals and HUFs having income from salary, house property, capital gains, and other sources. ITR-3 is for individuals and HUFs having income from business or profession. ITR-4 is for individuals, HUFs, and firms who have opted for presumptive taxation. ITR-5 is for LLP, AOP, BOI, partnership firms, and others, while ITR-6 is for companies other than those claiming exemption under section 11. Lastly, ITR-7 is for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
It is essential to file ITR within the due date and to select the appropriate form to avoid penalties and other legal issues. Moreover, filing ITR has several benefits, such as claiming tax refunds, carrying forward losses, and fulfilling compliance requirements. Therefore, taxpayers must keep themselves updated with the latest notifications and rules regarding ITR filing and comply with the requirements.
What is Financial Year (FY) or Assessment Year (AY)?
Understanding the difference between Financial Year (FY) and Assessment Year (AY) is important when it comes to filing Income Tax Returns (ITR). The FY is the period during which you earned income, which in this case is between 1st April 2022 to 31st March 2023. On the other hand, the AY is the year following the FY during which you file your returns and your investments are assessed for tax purposes. Therefore, the AY for FY 2022-23 would be from 1st April 2023 to 31st March 2024, and any ITR filed during this period would be assessed for the income earned during the previous FY.
It is crucial to note that the last date to file ITR for FY 2022-23 is July 31, 2023. Failure to file the ITR by this due date may result in a penalty of up to Rs. 5,000 or more, depending on the delay. However, if the taxable income is below Rs. 5 lakh, the maximum penalty would be Rs. 1,000. Therefore, it is advisable to file the ITR before the due date to avoid any penalties or interest on unpaid taxes.