Income Tax Filing for 2023-2024 – Step by Step Guide

As the finance sector evolves, the process of e-filing income tax becomes a focal point for individuals and businesses alike. In the assessment year 2023-2024, navigating Income Tax E-Filing takes centre stage. This not only reflects financial compliance but also underscores the seamless integration of technology into the taxation domain. As taxpayers gear up to engage with the digital interface, the nuances of E-Filing unveil a dynamic outlook of financial accountability and technological convenience.

Topics Covered:

• Schedule For Income Tax E-Filling
• How to File Income Tax Returns Online?
• Eligibility
• Documents For e-Filing Income Tax
• Verification of ITR
• How to Check ITR Status?
• Penalty for Delay in ITR Filling
• New Rules for Income Tax e-filing
• Benefits of e-Filing ITR
• What Happens After Filing ITR?
• Faq

Schedule For Income Tax E-Filling

In income tax compliance for the assessment year 2023-2024, adherence to specific filing deadlines is crucial. The due dates for Individual taxpayers, Body of Individuals (BOI), Hindu Undivided Family (HUF), and Association of Persons (AOP) are set for July 31, 2023, underlining the uniformity in these filing schedules.

For businesses requiring an audit, the deadline extends to October 31, 2023, while those necessitating a Transfer Pricing (TP) report have until November 30, 2023, to fulfil their obligations. Additionally, revised returns and belated returns have a common deadline of December 31, 2023. This structured timeline ensures a systematic and phased approach to Income Tax Return (ITR) filing, promoting efficiency and facilitating a streamlined process for both individual taxpayers and business entities.

How to File Income Tax Returns Online?

Wondering how to file ITR online? It is a streamlined process, and for the assessment year 2023-2024, the updated portal offers enhanced efficiency. Here's a step-by-step guide to navigate the e-filing procedure:

• Calculate Tax Liability

  Begin by calculating your income tax liability based on the provisions outlined in the Income Tax rules. Ensure a comprehensive assessment of your financial standing.

• Refer to Form 26AS

  Access your Form 26AS to review a summarised version of your Tax Deducted at Source (TDS) payments across different quarters of the assessment year. This serves as a crucial reference point.

• Determine Category

  Identify the category under which you fall, adhering to the eligibility criteria set by the Income Tax Department (ITD). Categories include individuals, Hindu Undivided Family (HUF), and more.

• Visit E-Filing Portal

  Navigate to the official e-filing portal of the Income Tax Department, providing a user-friendly interface for a seamless filing experience.

• Registration/Login

  If you're a new user, initiate the process by registering through the 'Register' button. For existing users, a simple 'Login' is the gateway to the e-filing dashboard.

• Choose Category and ITR Form

  Select your applicable category – individual, HUF, etc. Subsequently, choose the appropriate ITR Form relevant to your financial profile.

• Bank Account Details

  Enter your bank account details or pre-validate the provided information if it has been furnished earlier. This ensures a smooth transaction process.

• Verify Pre-Filled Details

  Upon reaching a new web page, review the pre-filled details in your ITR. Make necessary amendments if required, ensuring accuracy in the provided information.

• Confirm and Validate

  Once satisfied with the details entered, confirm and validate the information. This step is crucial for the accuracy and integrity of the filed return.

• Verification and Submission

  After validating, proceed to verify the returns. Follow the prescribed verification process and submit the return electronically.

• Send a Hard Copy to ITD

  Conclude the e-filing process by sending a hard copy of the verified return to the Income Tax Department. This offline verification adds an extra layer of authentication.

  Adhering to these steps ensures a systematic and error-free e-filing experience for individuals and entities, promoting financial transparency and compliance with the Income Tax regulations. Now if you are a new user, you must register yourself first to file ITR. Below are the steps to register -

• Visit the Official Website

  Start by visiting the official income tax e-filing website at

  https://www.incometax.gov.in/iec/foportal.

• Click on 'Register

  On the home page, locate and click on the 'Register' button situated on the right side.

• Choose User Type

  Opt for 'Individual' as your user type. This selection ensures that the registration process aligns with individual taxpayer requirements.

• Provide PAN and Details

  Enter essential details such as your PAN number, residential status, and other required information. After inputting the details, click on 'Continue' to proceed.

• Fill in Mandatory Information

  Complete the registration by providing mandatory details like your contact number, current address, and other required information. Once filled, click 'Submit.'

• Verify with OTP

  A crucial step involves entering the One Time Password (OTP) sent to your registered mobile number. This adds an extra layer of security and ensures the validity of the provided information.

  Completing these steps will successfully register you as an individual taxpayer on the income tax e-filing portal. This registration empowers you to conveniently file your income tax returns, access relevant documents, and stay compliant with tax regulations.

Eligibility

Any individual, Hindu Undivided Family (HUF), or other taxpayer with a PAN card is eligible for income tax e-filing. Whether salaried, self-employed, or having other sources of income, if the total income exceeds the taxable limit, e-filing is mandatory. Additionally, those seeking tax refunds, claiming deductions, or having financial transactions that require disclosure must utilise the e-filing portal. It offers a convenient and efficient platform for taxpayers to fulfil their filing obligations and stay in compliance with Income Tax regulations.

Documents For e-Filing Income Tax

• PAN and Aadhaar

  Individuals must have their Permanent Account Number (PAN) and Aadhaar number linked to it.

• Bank Account Details

  Provide bank account information, including account number, IFSC code, and bank branch details.

• Salary-related Documents

  For those filing based on salary, essential documents include Form 16, salary slips, and rent slips (if claiming HRA).

• Deduction-related Documents

  Individuals seeking deductions should have proof of income, investment details eligible for deductions, and information about home loans and insurance.

• Interest Certificates

  Furnish interest certificates for deposit and savings accounts to complete the filing process accurately.

Verification of ITR

Here are the methods using which you can e-verify your income tax return -

1. OTP Verification

   Use a One Time Password (OTP) sent to your Aadhaar-registered mobile number for quick and secure e-verification.

2. EVC via Bank Account

   Generate an Electronic Verification Code (EVC) through your pre-validated bank account for a convenient verification process.

3. EVC via Demat Account

   Alternatively, create an EVC using your pre-validated demat account for seamless e-verification.

4. EVC through ATM (Offline)

   Opt for an offline method by obtaining an EVC through an ATM for efficient return verification.

5. Net Banking

   Utilise Net Banking services to e-verify your returns conveniently online.

6. Digital Signature Certificate (DSC)

   Ensure a secure and authenticated verification process by using a Digital Signature Certificate (DSC) for e-filing.

How to Check ITR Status?

To check your Income Tax Return (ITR) e-filing status:

Using Acknowledgment Number

1. Visit the official Income Tax Department portal: [https://www.incometax.gov.in/iec/foportal](https://www.incometax.gov.in/iec/foportal).
2. Click on 'Income Tax Return (ITR) Status.'
3. Enter PAN, acknowledgement number, and captcha.
4. Click 'Submit' to view the status on the screen.

Using Login Credentials

1. Log in to the e-filing website with your credentials.
2. On the dashboard, select 'View Returns/Forms.'
3. Choose income tax returns and assessment year from the dropdown menu.
4. Click 'Submit' to view the status.

Ensure accurate entry of details to receive the current status of your e-filing. Regularly monitoring your ITR status ensures timely updates on the processing and acceptance of your income tax return.

Penalty for Delay in ITR Filling

1. Interest under Section 234A

   Taxpayers are liable to pay interest at a rate of 1.00% per month (or part of the month) on the unpaid tax amount.

2. Late Filing Fee under Section 234F

   A late filing fee is imposed, with a penalty of Rs 5,000 under Section 234F for delayed filing. For taxpayers with income less than Rs 5 lakh, the late filing fee is reduced to Rs 1,000.

3. Belated Return for Losses

   If filed after the due date, belated returns can still be submitted. Taxpayers can include losses incurred from properties, businesses, stock market transactions, mutual funds, etc.

   Filing income tax returns within the specified deadline is crucial to avoid these penalties and interest charges. Timely compliance ensures smooth financial transactions and adherence to tax regulations.

New Rules for Income Tax e-filing

The Union Budget of 2023 has introduced significant changes in income tax regulations, impacting the e-filing process. Under the New Tax Regime, a tax rebate is now applicable for individuals with income up to Rs 7 lakhs, relieving them from tax obligations. The revised tax slabs under this regime range from nil for income up to Rs 3 lakh to 30% for income above Rs 15 lakh.

Salaried taxpayers benefit from a standard deduction of Rs 50,000 in the new tax regime. Moreover, the highest surcharge for individuals earning more than Rs 5 crore has been reduced from 37% to 25%, resulting in a decreased tax rate from 42.74% to 39%.

Additionally, the new income tax regime is now the default option, but taxpayers retain the choice to opt for the old regime. Non-government employees can now enjoy an increased leave encashment limit of Rs 25 lakh, up from Rs 3 lakh. Furthermore, the TDS rate on EPF withdrawals has been reduced to 20% from 30%.

To enhance e-filing procedures, the Central Board of Direct Taxes (CBDT) has introduced updated income tax return forms and enabled the UDIN (Unique Document Identification Number) update functionality for forms filed since June 2021, providing a more streamlined and efficient e-filing experience for taxpayers.

Benefits of e-Filing ITR

1. Convenience

   E-filing offers a convenient online platform, allowing taxpayers to file their returns from anywhere at any time.

2. Accuracy and Error Reduction

   Online filing reduces the chances of manual errors, ensuring accurate submission of financial details.

3. Faster Processing

   E-filed returns are processed faster compared to physical filings, leading to quicker acknowledgement and refunds.

4. Access to Past Returns

   Taxpayers can easily access and retrieve their past return records online, facilitating financial planning and analysis.

5. Electronic Verification (EVC)

   E-filing allows for electronic verification through methods like Aadhar OTP or net banking, eliminating the need for physical signatures.

6. Prompt Acknowledgment

   Taxpayers receive instant acknowledgement of their filed returns, assuring successful submission.

7. Real-time Tracking

   Users can track the status of their filed returns in real time, ensuring transparency in the processing timeline.

8. Availability of Online Resources

   E-filing platforms often provide resources and guidelines for seamless filing, assisting users throughout the process.

9. Environmentally Friendly

   E-filing reduces the need for paper documentation, contributing to environmental conservation.

10. Accessibility to Tax Credits

    E-filing allows for efficient utilisation of tax credits and deductions, maximising potential savings for taxpayers.

What Happens After Filing ITR?

Following the acknowledgement of the Income Tax Return, the processing phase commences through the Income Tax Department's software. During this stage, the department's software systematically reviews the return, focusing on identifying arithmetical errors and scrutinising for incorrect claims that may be evident from the information provided in the return. This meticulous examination ensures the accuracy and reliability of the financial data submitted by the taxpayer.

FAQs

What is the minimum income for filing an ITR?

The minimum income for filing an Income Tax Return (ITR) varies according to individual tax slabs. Taxpayers are required to file returns if their income surpasses the specified threshold set by the respective tax slab applicable to their financial situation.

Should I file an ITR if my salary is less than 5 lakh?

Yes, you should file an Income Tax Return (ITR) even if your salary is less than 5 lakh. Filing a return is mandatory if your income exceeds the exempted limit or if you wish to claim refunds or avail of other financial benefits. It ensures compliance with tax regulations and facilitates financial documentation.

What is the commonest mistake when filing taxes?

One of the commonest mistakes when filing taxes is mathematical errors, including miscalculations or entering incorrect figures. Such errors can lead to discrepancies in the return and may result in additional scrutiny or delays in processing. Careful review and accurate data entry can help avoid this common pitfall.

You May Like Also:-

Income Tax on Intraday Trading

Streamlining ITR E-Verification

Short Term vs Long Term Capital Loss

Understanding How Equity Shares Are Taxed