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Income Tax Return Filing

Posted by CA Pankaj Kumar Vats
On 27 Jun 2023

Contents Covered

  • Key points before Filing of Income Tax Return
  • Who Need to File Income Tax Return
  • Due Date for Filing of ITR
  • Benefit of Filing of Income Tax Return on Time

(Who, When, Benefits and Key Points to be checked at the time of filing of Income Tax Return for FY 2022-23, AY 2023-24)

Filing of Income Tax Return before the due date is really important to ensure that there is no trouble in future and it is also the way that is how we can contribute towards in Nation Building via tax payments.

Let us understand it in simple language

What are key Points to be ensured before Filing of Income Tax Return

  • Ensure that the Income provided in 26AS are also reported in Income Tax Return.
  • Ensure that the Income details provided in AIS and TIS are also reported in Income Tax Return.
  • Ensure that taxes paid as Advances Taxes are taken care in the Income Tax Return
  • Ensure that the TDS deducted are taken care in the Income Tax Return
  • Ensure that all the deductions under Chapter VI are taken in Income Tax Return if it is there.
  • Prepare an Income Tax Computation before filing of Income Tax Return to get a summary view of the Income details, deduction details and tax calculations
  • Compare the Income Tax Return of current Year with Last Year Income Tax Return
  • Ensure that the tax payable is paid, if it is payable
  • Ensure that if any high value transaction is done during the Year is taken care in the Income tax return. The examples of these transactions may be such as purchase or sale of House Property, Foreign Travel, Credit Card Payments
  • Ensure that the detail of Directorship and Partnership are declared in income tax return

Who Need to File Income Tax Return

  • Anyone, who has income in excess of Rs. 2,50,000.00 should consider filing of Income Tax Return
  • Anyone, who has transact in equity shares, mutual funds or any other securities and there is some Capital Gain or Capital Loss
  • Anyone, who is engaged in Export of Services or Goods.
  • Anyone, who has sold any property
  • Non Residents should file their income even if the total income is below 2,50,000
  • There may be lots of other situation wherein ITR filing is important, just ensure tax filing if there is any major transaction undertaken during the year

Due Date for Filing of ITR

  • In case there is no requirement of Audit, then the due date is 31st July 2023
  • In case there is requirement of Tax Audit, then the due date is 31st Oct 2023

Benefit of Filing of Income Tax Return on Time

  • Filing of Income Tax Return ensures that the losses can be carry forwarded
  • Filing of Income Tax Return enables us to the right that we can revise the income tax return.
  • Filing of Income Tax is the way to communicate with the Income Tax Department. And via this communication, the income tax gets the data and chances of notices in future gets minimized if tax filings are done and the due tax is paid.

Conclusion:

Filing of Income Tax Return is really important and critical task to be completed, ensuring that all the relevant information is disclosed and the appropriate deductions are taken to ensure the tax payment is optimized and the future issues are avoided to the extent it is possible.

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