For many people, filing their income tax may feel like a burden, but there are benefits to timely filing of returns that outweigh the short-lived inconvenience. ITR (income tax return) filing is mandatory by law for some people, while for others, it is voluntary. Here is all you need to know about the filing of IT returns for the financial year (FY) 2022–23 from the new and old tax regimes, the income tax return last date, and more.
Why do we need to file IT returns?
Individuals and Hindu Undivided Families (HUFs) who have taxable income must furnish an ITR form to the Income Tax Department of India. It is a self-declaration form that provides details of the taxpayers’ financial data and personal assets. According to Income Tax law, anyone having a gross total income (GTI) above Rs 2.5 lakh must file income tax returns.
Click here to know All About Income Tax in India.
What are the exceptions to the rule?
There are exceptions to the rule depending on the age of the person. You do not have to file returns if you are below 60 years old and your GTI is below Rs 2.5 lakhs. If you are between 60 to 80 years old, you do not have to file returns if your GTI is Rs 3 lakh. The exemption limit for those above 80 years is raised to Rs 5 lakh.
However, even if your GTI is below the limit, you will still be required to file returns if you fall under any of the categories below:
- You have a Rs 1 crore deposit in your current accounts at a bank.
- Your electricity bill exceeds Rs 1 lakh either for all bills combined in a single financial year or for a single bill in a financial year.
- You have spent Rs 2 lakh and above on foreign travel for yourself or others.
- You are an ordinary resident Indian with foreign income, and/or you have assets in another country and/or the signing rights for an account in another country.
- Your GTI is over the limit of exemption before you claim a deduction on incurred capital gains under any of these sections—54 and its sub-sections, i.e. B, C, D, F, G, GA, as well as GB.
What are the tax slabs for income tax for FY 2021–22?
It is important to keep in mind that in 2020, the Indian government introduced a New Tax Regime, which could be taken up voluntarily by the taxpayers. This means that the taxpayers were under no obligation to switch to the new regime but could stick to the old one if it suited them better.
The New Tax Regime was introduced to make filing tax returns easier and less cumbersome. It allows taxpayers to forego certain investments that were required to save tax under the Old Tax Regime. The New Tax Regime also offered more tax slabs than the old one.
It is up to the taxpayer to choose which tax regime to follow when filing their tax return. Remember that the New Tax Regime does away with deductions and exemptions, which could increase your total taxable amount. Taxpayers should do a thorough comparative analysis of the two regimes before filing their taxes.
Income Tax Slab
Old Tax Regime
Individuals and HUFs below 60 years
Individuals and HUFs 60 to 80 years
Individuals and HUFs above 80 years
Rs 0–2.5 lakh
Rs 2.5–3 lakh
Rs 3–5 lakh
Rs 5–10 lakh
Rs 10–30 lakh
Income Tax Slab
New Tax Regime
All individuals and HUFs
Rs 0–2.5 lakh
Rs 2.5–3 lakh
Rs 3–5 lakh
Rs 5–7.5 lakh
Rs 7.5–10 lakh
Rs 10–12.5 lakh
Rs 12.5–15 lakh
Rs 15 lakh and above
What is the list of documents that you need to keep handy before filing your ITR?
Documents are an essential part of filing your Income Tax Returns which include:
- Form 16, A and B, for all salaried employees
- Form 26AS can be downloaded from https://www.incometax.gov.in/iec/foportal to know how much TDS (tax deduction at source) has been deducted from your income in the last financial year.
- Interest statements for all savings as well as fixed deposits
- TDS certificates from other income sources
- Proof of all your income taxing savings as well as expenses
- Long-term and short-term capital gains statements for all your investments
- Details of unlisted shares
- Aadhaar and PAN card along with eCAS statements
- Login ids of your bank account and ITR filing.
For a step by step guide on How To file ITR, Documents, Checklist, etc. check this article.
What is the IT return last date?
The income tax return filing last date for FY 2022–23 is 31 July 2022 for salaried individuals whose accounts are not required to be audited. The same applies to HUFs whose accounts are not required to be audited.
For taxpayers whose accounts have to be audited, the ITR last date for filing is 31 October 2022. These taxpayers include a working partner of a firm, a company, a proprietorship, and so on.
Taxpayers undertaking international or a specified domestic transaction during the FY 2022–23 must submit a verified report under Section 92E from a chartered accountant. Here, the IT return last date is 30 November 2022.
It is advisable to file the ITR well before the income tax return filing due date so that you don’t inadvertently miss filing your returns on time. A last-minute filing could result in an incorrect filing. Moreover, too many people attempting to log on to the online ITR portal causes the portal to lag or even crash, making it almost impossible to file returns.
What happens if you miss the ITR last date?
If you miss the income tax return last date of 31 July 2022 for FY 2022–23, you will be charged a penalty of Rs 5000. If you fall under the taxable category, but your GTI is less than Rs 5 lakh, the penalty for a delayed ITR filing is Rs 1000.
Moreover, taxpayers who miss the ITR last date may also be charged an interest penalty as per Section 234A of the Income Tax Act. The interest rate on the delayed filing of ITR is 1% on the outstanding amount each month. This interest is calculated from the first day after the due date until the date you file the late return.
The deadline for filing a belated ITR for FY 2022–23 is 31 December 2022.
If you do not fall within the taxable category, if you file your ITR after 31 July, you will not be subject to a penalty charge.
What are the benefits of filing before the IT return last date?
- Taxpayers can carry forward losses of the current year to the next financial year.
- Taxpayers avoid being charged an additional 1% interest per month on their income.
- There is no penalty charge if taxpayers file their returns on time
- Timely filing of returns helps taxpayers have their loans or credit card acceptance process easier as the lender will ask for income proof in the form of ITR before sanctioning a loan.
- Taxpayers can claim TDS refunds if it applies to them.
- If you plan on vacationing abroad, visa officials will ask for the previous three years’ IT returns before approving your application.
The bottom line:
Filing income tax returns is an important, lawful, and necessary obligation on the part of the taxpayers. With the various benefits offered by timely filing and the consequent penalty charges for late filing, it makes sense for all taxpayers to file their income tax returns before the ITR last date.