Selecting the correct form ensures compliance with tax laws and accurate reporting of income.
New Delhi: The deadline to file Income Tax Returns (ITR) for the financial year 2023-2024 (Assessment Year 2024-2025) is July 31, 2024. As the deadline is approaching, Tax officials are urging taxpayers to avoid the last-minute rush to ensure they have time to make any necessary corrections and avoid technical glitches while filing their returns.
According to the latest Income Tax regulations, if taxpayers fail to file their ITR by the deadline they will be automatically shifted to the New Tax Regime. This means they will lose the option to choose the old regime for that financial year.
Selecting the correct form ensures compliance with tax laws and accurate reporting of income. This article aims to guide taxpayers through the selection process effectively.
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How do you file your Income Tax Return (ITR)?
You can file your Income Tax Return (ITR) through e-filing portals, mobile apps, or with the assistance of chartered accountants. If filing independently, you’ll typically file online via the income tax department’s website
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To file your Income Tax Return (ITR) using the e-filing portal:
– Visit the e-filing portal: Go to the income tax department’s e-filing website.
– Log in: Enter your PAN, password, and captcha to log into your account.
– Navigate to ‘Income Tax Return’ tab: Click on the ‘Income Tax Return’ tab under the ‘E-File’ section.
– Select taxpayer status: Choose your status: Individual, Hindu Undivided Family (HUF), or Firm/LPP.
– Choose the correct ITR form: Select the appropriate ITR form based on your income slab and sources.
– Select Assessment Year: Choose Assessment Year 2023-24 for the relevant financial year.
– Validate tax computation summary: Review and validate the summary of tax computation.
– Submit the ITR: Click on ‘Submit’ to upload your completed ITR.
– E-verify your return: E-verify using options like Aadhaar OTP, EVC through bank ATM, pre-validated bank account, or pre-validated Demat account.
– Check acknowledgment: Receive the income tax acknowledgement on your registered email address.
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Understanding different ITR forms
The ITR forms are essential for taxpayers to report their income to the income tax department and determine their applicable tax. There are seven forms in total, ranging from ITR 1 to ITR 7. Your form choice depends on factors such as your income sources, income amount, and whether you are an individual or a company.
ITR-1 (Sahaj): This form is for individuals with income from salary, one house property, and other sources such as interest income or family pension. If you are a salaried individual earning less than Rs 50 lakh annually with agricultural income up to Rs 5,000, you should opt for ITR-1.
ITR-2: This form is for individuals and Hindu Undivided Families (HUF) who do not have income from profits and gains of business or profession.
ITR-3: ITR-3: This form is for individuals and Hindu Undivided Families (HUFs) who have income from profits and gains of business or profession.
ITR-4 (Sugam): This form is for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships) who are residents and have total income up to Rs 50 lakh. It is applicable if they have presumptive income from business and profession.
Notably, Individuals receiving income as freelancers from these sources are eligible for the presumptive scheme if their gross revenues do not exceed Rs 50 lakh.
ITR-5: This form is for entities other than individuals, Hindu Undivided Families (HUFs), companies, and those filing Form ITR-7.
ITR-6: This form is for companies that are not claiming exemption under section 11 of the Income Tax Act.
ITR-7: This form is for persons, including companies, who are required to furnish a return under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) of the Income Tax Act.
