File Income Tax Return - An Overview

What is ITR (Income Tax Return) - How to File & Download ITR

Updated On - 25 Jun 2023

Income Tax Return (ITR) is a form used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. It is mandatory for individuals who earn a certain amount of money have to File IT Returns.

Firms or companies, Hindu Undivided Families (HUFs), and self-employed or salaried individuals must file ITR to the Income Tax Department of India.

What is ITR Filing?

ITR filing is the process by which a taxpayer has to file a report of his total income earned in a financial year. Through Income Tax Department’s official portal, an individual can complete their filing of returns. It has been notified with seven various forms - ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Note: You can now file your taxes through the New income tax portal. The new portal comes with a plethora of features and is designed to ease the tax filing process.

ITR Deadline

The last date for filing Income Tax Return (ITR) for FY 2022-23 (AY 2023-24) will be 31st July 2023.

Why Should you File ITR?

It is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:

• Individuals who fall within the respective tax slabs.
• If it's a Company or Firm, irrespective of the profit or loss made in a financial year.
• If a tax refund needs to be claimed.
• If a loss under a head of income needs to be carried forward.
• If being a resident of India, one has an asset or financial interest in any entity located outside India.
• If being a resident of India, one is a signing authority in a foreign account.
• If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
• If one is applying for a loan or a visa.
• If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.

With the implementation of efiling of Income Tax Returns, the following cases will require an e-filing Income Tax :

• In case a refund is required
• In case the gross total annual income exceeds Rs.5 lakh
• In case an income tax refund is required
• ITR 3, 4, 5, 6, 7 have to be mandatorily e-filed

How to Download ITR Form?

Step 1: Visit the official portal for income tax filing.

Step 2: If you are an existing user, click on the ‘Login’ option.

Step 3: Click on the ‘Register’ option if you haven’t registered already.

Step 4: Navigate to 'My Account' and choose the 'Download Pre-filled XML' option after logging in.

Step 5: Select the Assessment Year for which you require a return.

Step 6: Choose the ITR Form Number for which you downloaded the Excel utility.

Step 7: Depending on the type of income listed in the description box, choose the appropriate ITR Form.

Step 8: Download the form in Microsoft Excel format and save the XML file.

Step 9: You will find the Excel and XML utilities in a folder of your computer.

Step 10: To import information from the pre-filled downloaded XML file into the Excel utility, click on the ‘Import from XML’ option.

Which ITR Form to File?

Depending on the type of income that is generated by the taxpayer, the form that must be submitted will be different. The various forms can be downloaded from the official website of the income tax department 'https://www.incometaxindia.gov.in/pages/downloads/income-tax-return.aspx' The different types of ITR forms that are available are mentioned below:

Documents Required to Fill ITR

For Filing IT returns Online, the following documents are needed:

• Pan card
• Form 26AS
• Form 16A, 16B, 16C
• Salary Pay slips
• Bank statements
• Interest certificates
• TDS certificate
• Proof of tax saving investments

How to File ITR for FY 2022-23 (AY 2023-24)

You can file the ITR by visiting the official website of the Income Tax Department. However, the registration process must be completed before you can file the IT Return online. The Income Tax Department (ITD) of the Government of India has recently updated the online portal for e-filing of income tax returns. The updated portal makes the e-filing process even easier and can be filed by following the steps mentioned below:

Step 1: On the basis of the provisions prescribed by the Income Tax rules, you can find out your income tax liability.

Step 2: You can refer to your Form 26AS to get a summary of your TDS payment for the different quarters of the assessment year.

Step 3: On the basis of the eligibility criteria provided by the Income Tax Department (ITD), you will have to determine the category that you will fall under.

Step 4: Visit the official e-filing portal of the income tax department at e-Filing Home Page, Income Tax Department, Government of India (https://eportal.incometax.gov.in/iec/foservices/#/login).

Step 5: In case you are a new user, you can register yourself using the 'Register' button.

Step 6: If you have already registered yourself on the portal previously, you can just click on the 'Login' button.

Step 7: Click on the 'File Income Tax Return' option under the 'e-file' tab.

Step 8: From the list provided on the website, you have to choose the category that you fall under - individual, Hindu Undivided Family (HUF), and so on.

Step 9: Choose the suitable ITR Form that is applicable to you.

Step 10: You will be required to enter the details of your bank account as well. If you have already provided the same previously, you will be required to pre-validate the details.

Step 11: After this, you will be redirected to a new web page where you will be able to check the pre-filled details of your ITR. Check the details and make changes if required. Once you are sure that all the details provided in the form are correct, confirm the same and validate it.

Step 12: Once the process is complete, verify the returns and send a hard copy of the same to the Income Tax Department.

How to File ITR Offline

The steps to file ITR offline are mentioned below:

Step 1: Visit the income tax e-filing portal.

Step 2: Under the 'Downloads > IT Return Preparation Software' section, download the relevant ITR utility.

Step 3: Extract the utility ZIP file and open it from the extracted folder.

Step 4: Enter all the requested information in the ITR form.

Step 5: Review all of the ITR form's tabs before calculating the tax.

Step 6: Generate the XML and save it.

Step 7: Enter your user ID (PAN), password, and captcha code and click on ‘Login’ to log into the e-Filing portal.

Step 8: In the 'e-File' menu, select the 'Income Tax Return' link.

Step 9: On the Income Tax Return page, your PAN will be automatically filled in.

Step 10: Choose the Assessment Year and the ITR Form Number.

Step 11: Choose the 'Filing Type' as 'Original/Revised Return.’

Step 12: Select the 'Upload XML’ option as the ‘Submission Mode.’

Step 13: Select the appropriate Verification option and submit the ITR.

Steps to File ITR without Form 16

These are the steps to file ITR if you don't have Form 16:

Step 1: Determine how much income you earned from all your sources combined which would include your salary or pension, rent, capital gain on the sales of a capital asset, interest from your fixed deposits and bank accounts, etc.

Step 2: Calculate your Tax Deducted at Source (TDS) which you can do with the help of Form 26AS which can be downloaded from the website of TRACES.

Step 3: Calculate your TDS on income. If you have House Rent Allowance (HRA) in your salary breakup, you can deduction on HRA for which you have to submit your rental receipts to your organization's payroll department. If this has not been submitted in advance, you can claim it while filing your returns too.

Step 4: Calculate your total income for the entire financial year for which you are filing your tax returns. The total income is the sum of all the income received and the TDS that has been deducted on that income.

Step 5: Claim the deductions that you are eligible for on your investments and payments. This should be done in the computation of your total taxable income. For Provident Fund deductions, you can only claim deduction for your own contribution and not for your employer's.

Step 6: Calculate your total taxable income by deducting the total deductions that can be claimed from the sum total of your income earned.

Step 7: Calculate your tax liability for the year by applying the tax slab rates which are applicable to you.

Step 8: Determine the tax payable by you. If the TDS deducted on your income is less than your tax liability as calculated in Step 6, the tax to be paid by you is the difference amount. If the TDS deducted exceeds your tax liability, then you have paid excess tax for which you can claim a refund while filing your IT returns.

Step 9: Now you can file your IT returns

Penalty for Late Filing of ITR

In case the returns are not filed by the due date, huge penalties are levied on the taxpayer. Apart from penalties, there could be other inconveniences and consequences that the individual would face in case the returns are not filed. Depending on when the returns are filed after the due date, individuals could face penalties between Rs.1,000 and Rs.10,000.

Given below is the penalties that are levied for a delay in ITR filing for AY 2023-24:

Apart from penalties, in case taxpayers are eligible to receive a refund, there will be a delay in case the ITR is filed late. Taxpayers will also have to pay a 1% interest on the pending amount in case the returns are not filed on time.