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[Hide]An income tax return is a form that taxpayers use to report their income, expenses, deductions, and investments to the government. In India, it is mandatory for citizens to file their income tax return based on the Income Tax Act, 1961. Whether you are an individual, association, firm, LLP, local government, or Hindu undivided family, you need to pay taxes on your earnings. Filing your Income Tax Return (ITR) each year is crucial. You have the option to file it offline or online, depending on your preference.
Who is Required to File ITR?
Now let's look at the initial tax slab list of individuals and businesses that are required by law to file income tax return filing for the FY 22-23 :
| Age limit | Income Tax Rate |
| Less than 60 Years | 5% above ₹ 2,50,000 Anyone who is under 60 years, earning more than Rs 2.5 lakhs annually is required to file an income tax return. |
| 60 years or more but less than 80 years of age | 5% above ₹ 3,00,000 For senior adults aged 60 to 79 years, the exemption limit is Rs. 3 lakh, meaning they need to file an income tax return if their income exceeds this amount. |
| 80 years of age or more | 20% above ₹ 5,00,000 For super senior citizens aged 80 years and above, the exemption limit is Rs. 5 lakh, and they are required to file an income tax return if their income exceeds this threshold. |
How to file Income Tax Returns Online?
Here are the steps to file Income Tax Returns Online:
• Log on to the Income Tax Department portal. Register using your Permanent Account Number (PAN) as the user ID. Once registered Click on the 'Login' button. Enter your username and click 'Continue'. Enter your password to complete the login process.
• Once logged into the portal. Click on the 'e-file' tab. Select 'File Income Tax Return' option.
• Choose Assessment Year as 2023–24 and Mode of filing as online. Click 'Continue' to proceed.
• If you have a pending Income Tax Return that needs to be submitted. Click on 'Resume Filing'. If you want to discard the saved return and start fresh, click on 'Start New Filing'.
• Select the appropriate status option that applies to you. Click 'Continue' to proceed further.
• To select the type of Income Tax Return (ITR) form. Choose ITR 1 or ITR 4 if you know which form to file. If you're unsure, select "Help me decide which ITR Form to file" to receive assistance from the system. The system will help determine the appropriate ITR form for you. Proceed with filing your Income Tax Return (ITR) based on the recommended form.
• After selecting the applicable ITR form take note of the required documents, such as Form 16, Bank Account details, Bank Statement/Passbook, Capital Gains Details, Dividend Income, Home Loan Statement, Form 26AS and AIS/TIS, premium receipts etc. And then click on "Let's Get Started" to begin the filing process.
• To continue with the filing process and select the checkbox that corresponds to your reason for filing the Income Tax Return (ITR) and click "Continue".
• If you want to opt for the New Tax Regime, select "Yes" in the Personal Information Section. Review the pre-filled data and make any necessary edits. Enter any remaining or additional data required in the relevant sections. Click "Confirm" at the end of each section after completing and reviewing the information.
• If there is no tax liability or if you are eligible for a refund based on tax computation, you will be directed to the Preview and Submit Your Return page. If there is tax liability payable based on the computation, you will get the Pay Now. If you click on “Pay Now” you will be redirected to e-pay Tax service. Click Continue.
• Once you have successfully made the payment through the e-Filing portal, a success message will be displayed. Click on "Back to Return Filing" to complete the filing of your Income Tax Return (ITR).
• After clicking on "Preview Return", on the Preview and Submit Your Return page, select the declaration checkbox and click "Proceed to Preview".
• Preview your return and click "Proceed to Validation".
• Once the validation is complete, on the Preview and Submit Your Return page, click "Proceed to Verification" to proceed further.
• On the "Complete your Verification" page, select your preferred option: e-verify now, e-verify later, or verify via ITR-V. Click "Continue" to proceed.
• After e-Verifying your return, a success message will be displayed, including the Transaction ID and Acknowledgment Number. You will also receive a confirmation message on your registered mobile number and email ID.
Why is it important to file an ITR?
The moral and social responsibility of a responsible person to file an ITR makes it important to do so. In addition, the Government of India bases its calculations of residents' expenses on the ITRs we provide, and it provides a platform for citizens to submit claims for refunds in addition to various forms of relief. There are further justifications for ITR filing in addition to these. As follows:
Filing ITR is a sign that indicates that you are responsible
Financial responsibility is the first step in being a responsible person. If you have good money management, you would know how important ITR is. It gives people and companies an advantage when engaging in future transactions and renders you financially accountable. Additionally, the income tax department of India would be assisted in keeping track of these transactions by ITRs that have been filed by individuals or businesses.
ITR filing is important even if your income level doesn’t qualify
The ITR is submitted in accordance with the income brackets for which your income is eligible. However, it is best to file the Income tax return voluntarily even if your income does not fall within the specified income slabs. Because registration of immovable assets in various Indian states may demand documentation of the owner's or business's prior tax return history. Furthermore, registering major transactions done by the person is facilitated by ITR filing.
ITR filing is essential to prove while applying for loans
Most of us prefer to use home loans to finance the construction of our own homes or other costs. If you have a solid history of Income tax return filings on your credit, having one will assist you receive the loan without any problems when applying for a home loan. Before approving a credit card application, credit card firms also review a person's ITR filing history. As evidence that you are a responsible financial individual, it is crucial to have a solid ITR filing track record.
ITR filing history will help you claim against past losses
Financial losses can happen to people or businesses in a number of different ways. Long-term or short-term losses are both possible. Nevertheless, it is great for maintaining a thorough record of your ITR files. Maintaining a consistent ITR Filing will assist you in making a loss claim. Since you can never be sure when you'll need something similar. Since horrible things don't just happen overnight. Consequently, having a strong ITR filing history and easily obtaining the claim of your losses.
Conclusion
The rules governing Indian income tax were written by the Indian government. All people, Hindu Undivided Families (HUFs), enterprises (including LLPs), professionals, municipal governments, and any other employees coming under the government's regulation are subject to a tax on taxable income. A person's tax status is established by their pay scale status under these regulations.
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