What is Income Tax Return (ITR)? : How to File ITR Online for FY 2022-23 (AY 2023-24)?

Introduction

Filing income tax is always considered a complex process. However, it is not as tedious as it sounds. The Income Tax Department is rigorously working to make the filing process smooth and easy.

The Income Tax Department has also embraced digital technology, and one of the major conveniences that have come through it is electronic filing (e-filing).

From introducing the provision u/s 234F for non-filers of income tax returns to making most of the processes accessible online the department’s objective is very clear that it wants your files to be clean and compliant with the law.

While filing ITR, a lot of questions cross the mind, like How to file ITR? Which ITR form is the correct one to choose? What documents are required to file ITR? Can I file ITR for FY 2022-23 (AY 2023-24)? And many.

This article will share the details and latest updates you must know while filing your income tax return (ITR) for FY 2022-23(AY 2023-24).

Latest Updates on Income Tax Return

Budget 2023 Updates

The new tax regime will be the default tax regime as per Budget 2023

The basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh to make the new tax regime more attractive. Also, the highest tax rate of 30% will be levied above Rs 15 lakh income.

In the budget 2023-24 announcement, the rebate under section 87A has been hiked to Rs 7 lakh from Rs 5 lakh under the new tax regime. The rebate benefit will be up to Rs 25000, provided income doesn’t exceed the limit of 7 lakhs.

The proposal to introduce the standard deduction in the new tax regime has been shared. As per this salaried class, the pensioners will benefit from a standard deduction of Rs. 50,000/-

Also, the exemption of a family pension of Rs. 15,000 has been introduced under the new tax regime.

Reduction in the surcharge on annual income above 5 crores from 37% to 25% under the new regime. Currently, the highest tax rate is 42.74%, which would slash the maximum tax rate to 39% after this reduction.

The limit of Rs. 3 lakh for tax exemption on leave encashment on non-government salaried employees has been raised to Rs. 25 lakh.

Furthermore, the new tax regime has reduced the income tax slabs from 7 to 6. The revised tax structure as per the new tax regime is:-

What is Income Tax Return (ITR)?

Income tax is a type of tax that is levied by governments on the income earned by individuals, corporations, and other entities. The tax is usually calculated as a percentage of the income earned, and the amount paid is used to fund various government programs and services.

eFiling of Income Tax returns refers to the electronic filing of tax returns through online platforms provided by tax authorities. It is an alternative to the traditional method of filing paper-based tax returns. This process is easy; quickly, in the comfort of your home or office, you can file an income tax return.

Individuals are required to pay income tax on their salary or wages, as well as on other forms of income such as interest, dividends, rental income, business profits, and capital gains. Corporations are also required to pay income tax on their profits.

ITR contains all the details of incomes and tax-saving investments an individual does in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax returns (Forms are relevant for individuals, companies, firms, etc.).

What are the benefits of filing an Income Tax Return?

In India, there is a general practice that if you are a citizen with a gross income that exceeds the basic tax exemption limit, i.e., 2,50,000 subject to certain conditions, you must file Income Tax Return (ITR). If your income doesn’t exceed Rs 2,50,000 during the year, you’re not legally bound to file your return. But it’s still recommended that you file your return because of the benefits that come with filing an income tax return: