It’s that time of year once again! We must all focus on one of the most crucial activities in our financial lives as the new year is underway: filing our income tax returns. So, better start working on your 2023 income tax filing procedure as soon as possible.
What is ITR?
Every year, individuals and companies must complete and submit an income tax return (ITR) form to the government’s tax authorities, as a way of documenting their income and taxes paid.. This procedure is used to report an individual’s earnings, expenses, and other important financial data.
Who should file an ITR?
You must file an Income Tax Return (ITR) if you are an individual or entrepreneur with income that exceeds a particular limit in a fiscal year. This amount varies for each individual according to various factors like your age, and sources of income, among many others.
What are the benefits of tax filings?
Filing an ITR has many advantages. Not only is the process mandatory, but it is also helpful in keeping track of your earnings, and expenditures. We have listed some of the benefits of filing your Income tax return below:
- helpful in keeping track of your earnings and expenditures
- helps in claiming refunds or deductions from government
- covers any losses from previous years
What documents are required to file an ITR?
Some of the important documents or proofs that you may need to submit to file an ITR with your tax professional or accountant are:
- Form 16 issued by your company
- Tax Deducted at Source (TDS) forms
- documents of investments made for tax savings
- Aadhaar card
- Proof to claim deductions
- Form 26AS
- PAN (Permanent Account Number)
- Bank statements
- HRA receipts
- Form 16A, which the bank issues
Important dates regarding ITR 2023
Unless an extension is issued, Indian taxpayers are required to file an income tax return for all earnings earned up to July 31 of the assessment year AY 2023-24 (FY 2022-23). This date may or may not be extended further.
Income tax slab
Based on your income, the income tax slab defines the amount of tax you must pay to the government each year. The Indian Finance Minister, Nirmala Sitharaman, has announced a new income tax slab in the Union Budget for February 2023. The new income tax system is optional, though, so taxpayers can choose to go with it or continue filing their taxes under the previous income tax slab.
|
Old Income tax slab (FY 2022-23) |
New Income tax slab (FY 2023-24) | Income tax (in percentage) |
| Income Up to Rs.2.5 lakh |
Income Up to Rs.3 lakh |
0% |
| Income range Rs.2.5 lakh – Rs.5 lakh |
Income range Rs.3 lakh – Rs.6 lakh |
5% |
| Income range Rs.5 lakh – Rs.7.5 lakh |
Income range Rs 6 lakh – Rs.9 lakh |
10% |
| Income range Rs.7.5 lakh – Rs.10 lakh |
Income range .9 lakh – Rs.12 lakh |
15% |
| Income range Rs.10 lakh – Rs.12.5 lakh |
Income range Rs.12 lakh – Rs.15 lakh |
20% |
| Income range Rs.10 lakh – Rs.12.5 lakh |
NA |
25% |
|
Income range above Rs.15 lakh |
Income range above Rs.15 lakh |
30% |
What happens when we miss filing the ITR?
The government officials take it seriously when we fail or miss to file the ITR, regardless of whether it involves missing to file, refusing to pay on purpose, or failing to declare all of your earnings. Some of the consequences of not filing an ITR may include:
- Imprisonment
- Asset/property seizure
- Penalty
Imprisonment: Failure to file income taxes may result in imprisonment. For each year that taxes were not submitted, willful failure to pay taxes is a criminal offence that carries a maximum sentence of one year in jail.
Asset/property seizure: Tax officials can seize your assets, such as bank accounts, and properties, such as cars, if you fail to make tax payments and filings.
Penalty: As mentioned earlier, the last date to file the ITR for AY 2023-24 is July 31, 2023. According to Section 234 F, a person will be subject to a maximum penalty of Rs 5,000 for filing a late ITR after the deadline of July 31, 2023.
Final thoughts
In conclusion, preparing your income tax returns for the year 2023 could seem like a challenging task, but with careful planning, and knowledge about updated tax regulations, it can go great. Always be aware of all the tax credits and deductions you are qualified for and, if necessary, seek professional tax guidance from professional tax filing providers. Happy filing 2023!
FAQs
- When can I start filing my ITR?
Individuals or employees can start filing their ITR immediately after they receive their Form 16 by their employers. - What is the deadline for submitting an income tax return (ITR)?
The Income tax return (ITR) for all individuals and businesses is to be filed on or before July 31 for the assessment year AY 2023-24 (FY 2022-23).
- How can I file my ITR (Income Tax Returns)?
With ChennaiAccounts, you may easily e-file your income tax return (ITR) in a few minutes.
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