In India, after the introduction of e-filing , procedure for filing of tax returns has completely  and citizens and businesses are complying  with their tax duties. In this article, the idea of electronic filing is examined along with its benefits, , and effects on tax compliance in the nation.

However, filing an income tax return in India through the official website involves filing ITR forms. The ITR Form differs from individual to salaried person, hence, income tax department has various form titles, from ITR 1 to ITR 7. Each form has a specific function and belongs to a particular category.

Income Tax returns need to be carefully filed with regards to each detail information to be filled. Even if we miss a single point in the form, we get an error . This is where you need the guidelines to complete the income tax filing. CAnest is there to assist you in the filing process.

If taxpayers pay taxes and file after the due date, they have to pay interest under Section 234A and a penalty under Section 234F.

What is Financial Year (FY) and Assessment Year (AY)?

The returnto be filed  is for the income  earned in FY 2022–23, i.e., for the income earned between April 1, 2022, and March 31, 2023. The assessment year is the time period during which you file your returns and declare your investments for tax assessment for your financial year (2022–2023). The income earned this year would be assessed directly the following year, i.e. 1st April 2023 to 31st March 2024.

Income Tax filing due dates for FY 2022-23 (AY 2023-24)

Income Tax filing due dates for FY 2022-23

Document Required for ITR Return file.

If you are an employee

  • FORM 16
  • Salary Slip (very important)
  • Investment proof
  • Interest income statement
  • Payments for donations, mutual funds and other forms of investment and any other eligible deductible expenses

IF your business owner

  • Trading report
  • Business account details
  • Profit and loss statement if any
  • Investment proof
  • Asset purchase /sale document
  • TDS Certificate Provide by bank
  • Interest income statement
  • Payments for donations, mutual funds and other forms of investment and any other eligible deductible expenses

Any individual whose earning is more than 2.5 lakh per year must file income tax returns.

Benefits of e-filing income tax returns (ITR)

  • Avoid penalties and interest for late filing.
  • Loans like bank loans, education loans, and personal loans can be easily available, but they require the last 3 years’ ITR return.
  • For visa applications, most embassies and consultants require the last 3 years ITR returns.
  • The earlier you file your return, the sooner you can claim the refund.
  • Become compliant with Income Tax laws.
  • Carry Forward of Losses in case of loss.

Who Is Required to File an Income Tax Return?

As per the income tax department, the following entities are required to file ITR RETURNS yearly

  •  Individual who is a director of a private limited company or a partner in a limited liability partnership firm.
  • Gross income more than 2.5 lakh: Individuals whose income is more than 2.5 lakh must fill out income tax returns.
  • Income from trusts or NGOs: If income is generated from religious institutions or trusts, education institutions, trade unions, or non-profit organisations,
  • Business: Companies or firms that have earned income, regardless of profit or loss, have filed income tax returns.
  • For tax refunds: Individuals who would like to get the refund from the income tax department
  • Carry forward the losses: to carry forward the losses under a particular head of income, filing income tax is important.
  • To apply for a loan, if you want the loan, then you should file your income tax.

What happens if you fail to submit your ITR before the deadline?

  • Interest: If you file your income tax returns after the due date, you have to pay 1% interest as per Section 234A per month or a part month on the unpaid tax amount.
  • Penalty: As per Section 234F, Rs. 5,000 would be the penalty for late income tax returns. It can decrease by 1000 if the total income tax is less than 5 lakhs.
  • Belated Returns: If you file income tax after the due date, it is called a belated return.” Still, you have to pay interest and a penalty fee, and you can’t carry forward the losses of future adjustments.

The income tax also stated due date would be 31st December 2023.

How Can CAnest Assist You with ITR Filing?

Filing an income tax return on your own would be a challenging task and require thorough understanding of Income Tax Laws..  Choosing CAnest for filing income tax returns, the whole process would go quickly and smooth. Our expert team can support you around the clock and file your income tax returns with personalised tax advisory and without any delay.

  • Reasonable Price: We provide a reasonable price compared to others for filing your income tax returns.
  • Fast Process: If you are running out of time, then contact our experts. We offer the fastest income tax return services.

All you have to do is contact us, sit back and calm down, and watch your income tax return filing go smoothly.