ITR Filing Due Date For AY: 2023-24

ITR Filing Due Date For AY: 2023-24. What Are The Penalties For Not Filing In Prescribed Deadline

The deadline for furnishing the Income Tax Return (ITR) for the Assessment Year (AY) 2023-24, which is for the income earned in the financial year (FY) 2022-23, is on July 31, 2023, for most taxpayers. Nevertheless, for taxpayers who must undergo an audit of their accounts as per the Income Tax Act, including companies, LLPs, and some individuals, the deadline for filing the ITR is commonly October 31, 2023.

Applicable Penalty If Missed ITR Filing Due Date

If the taxpayers fail to file income tax returns within the due date or proceed with the late filing of income tax returns then there are certain penalties levied on taxpayers. These penalties are as follows:

1. A penalty of Rs. 5,000 will be levied in case the income tax return is not filed within the ITR filing due date of 31st of July but between the 1st of August and 31st of December.
2. A penalty of Rs. 10,000 will be levied in case the income tax return is filed after 31st December of the relevant assessment year.
3. If the total income of the taxpayers is below Rs. 5 lakhs then the late filing fee will be Rs. 1,000.
4. Section 234A, 234B, and 234C may also be levied in case of a delay for filing the income tax return.

Therefore it becomes essential for taxpayers to file their income tax returns (ITR) within the due date to avoid the aforementioned penalties or other consequences. 

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Types of Taxpayers

The income tax department divided the different categories of the different taxpayers depending on their nature of income and the type of entity. Thus, there are various types of classification of taxpayers in India which you must know to check in which category you fall. We have mentioned below the different types of taxpayers in India:

• Individuals Taxpayers: Any person or individual who earns an income from salary, profession, or self-employment is considered an individual taxpayer as per income tax 1961.
• Companies: Under the Income Tax Act, Companies are treated as separate legal entities and taxed separately, having been registered as per the Companies Act of 2013.
• Hindu Undivided Family (HUF): An HUF or Hindu undivided family is a separate taxpayer under the Income Tax Act. HUFs are taxed distinctively and the income of HUF is also taxed separately from the income of its members. 
• Limited Liability Partnership (LLP): An LLP is a hybrid type of firm that provides the benefits of having limited liabilities as a company. Limited liability partnership is registered under the limited liability partnership Act, 2008 & taxed separately as an entity per the income tax act.
• Partnership Firm: A partnership firm is a separate entity that is registered under the partnership act of 1932 and taxed separately as per the income tax act.
• Trusts: Trusts are known as legal entities which are created for charitable or religious objectives, and their revenue is subject to separate taxation according to the Income Tax Act.
• Body of Individuals (BOIs) & Association of Persons (AOPs): BOIs and AOPs are groups of individuals, companies, and HUF who come with a similar purpose to generate some income, and are taxed as a distinct entity under the Income Tax Act.

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5 Types Of Income - Heads of Income 

Irrespective of whether an individual is a resident or non-resident of India, all those who receive income within the country are liable to pay income tax. To simplify the process, the Income Tax department categorizes income into 5 main categories:

• Income From Salary: The income obtained from salary and pension is subject to taxation under this particular category of income.
• Income From Other Sources: The income arising from interest on savings bank accounts, fixed deposits, and lottery winnings is liable to be taxed under this category.
• Income From House Property: The income obtained from renting out house property is subject to taxation under this category of income.
• Income From Capital Gains: The excess income earned from the sale of a capital asset, such as mutual funds, shares, or property, is subject to taxation under this category of income.
• Income From Business/Profession: The gains obtained by self-employed individuals, businesses, freelancers, or contractors, and the revenue earned by professionals, such as life insurance agents, chartered accountants, doctors, lawyers, etc who run their own profession, are taxed under this particular category of income.

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What is the Financial Year/fiscal year?

In India, A financial year is a one-year period in which income is earned, known as a fiscal year. A fiscal year commences on the 1st of April and ends on the 31st of March. A fiscal year is for organizations, governments, and businesses to plan their financial reporting. In simple words, The income earned in the financial year will be considered as income earned from 1st April 2022 to 31st March 2023. A financial year is also abbreviated as F.Y. 2022. The year after the financial year in which earned income is taxed is called the assessment year. 

What is Assessment Year (AY)?

An Assessment Year is a period from the 1st of April to the 31st of March during which your earned money in a financial year is taxed. The year that comes just after the financial year is known as an assessment year. Individuals have to file income tax returns in the relevant assessment year. For example, if the financial year is 2022-23 then the assessment year will be 2023-24. 

What is PAN?

PAN stands for Permanent Account Number with a 10-digit alphanumeric code. PAN is used for the unique identification process. It is the responsibility of the Income Tax Department to provide this number to every taxpayer or the person who applies for it. A PAN is a necessary document to file income tax returns. It is essential to have a PAN card if you are dealing in financial transactions such as professional fees, receiving a salary, selling or purchase of assets, etc.

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What is TAN?

TAN is an abbreviation of Tax Deduction Account Number or Tax Collection Account Number. A TAN is a 10-digit alphanumeric code. This TAN number must be shown by people accountable while deducting or collecting tax at source. A TAN is an essential document that must be furnished while filing  TDS or TCS returns, payments, certificates, Annual Information returns, and other documents. 

What are the types of ITR Forms?

The Department of income tax has announced seven types of forms to date. The Relevancy of these ITR forms differs on the basis of earned income, source of the income of tax-payer, and category of income. We have mentioned all seven ITR forms below with details.

• ITR-1: ITR-1 form must be filed by the residents individuals who are earning income from salary, house property, other sources, agricultural income below of Rs. 5,000 and with a net income of up to Rs. 50 lakhs.
• ITR-2: This ITR form is to be filed by the Individuals/HUFs who do not have any business/profession under any proprietorship.
• ITR-3: The ITR-3 form must be furnished by the Individuals/HUFs who have income from a proprietary business/profession.
• ITR-4: This form is also known as Sugam. This ITR-4 is used by the individual, (HUF) Hindu undivided family or partnership firms.
• ITR-5: Partnership firms or LLPs
• ITR-6: ITR-6 Form is to be filled out by the companies who do not claim tax exemption on their income under section 11 of the income tax act.
• ITR-7: AOPs (Association of Persons), LLPs (Limited Liability Partnership), BOIs (Body of individuals), AJP ( Artificial Juridical Person), Firms and Companies

What Are The Required Documents to File ITR?

Before filing Your income tax return, it is important to know about the essential documents required for the filing process. We have mentioned below all the important documents for filing the ITR. You should have a bank saving account passbook, PAN card, Aadhaar card, and salary slip.

Form-16: 

Form-16 is used as proof of filing income tax returns by the employer to the government. Form-16 is an income tax form for companies, firms, and unorganized corporations to give their employees details about the deducted tax. This form contains all the details like net salary, HRA and LTA exemptions, gross taxable salary, tax-saving deductions, salary TDS, and any loss that happened with the employee.

Form-26AS: 

Form-26AS is a compact annual tax statement that contains information about tax deducted or collected at the source and TDS on various salaries, interest, self-assessment, and advances tax. The Budget for 2020-21 had declared the modified Form 26AS providing a more comprehensive profile of the taxpayer going further into the details of tax organized and deducted at source. 

Form-16A:

This Form consists of all the details about TDS deducted on interest received from deposits like FD or RD bank deposits. This is basically a certificate that every employer provides his/her employee. Form-16 contains all the sources of income of the individuals. 

Form-16B: 

Form-16B is a type of certification that contains the details of the total TDS amount deducted on account of the property sale. In simple words, This is a TDS certificate for all TDS deducted upon a property sale. 

Form-16C: 

Form 16C contains information about the deductor and deductee such as PAN number, certificate number, the financial year of deduction, unique acknowledgment number, the rent paid, the date, and the amount of tax deducted and deposited.

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FAQs

• Are FY (financial year) and AY (assesment year) the same?

An Assessment Year is a period from the 1st of April the to 31st of March during which your earned money in a financial year is taxed. 

A financial year is a one-year period in which income is earned, known as fiscal year. A fiscal year commences on the 1st of April and ends on the 31st of March.

• Can I open a bank account without PAN?

Yes. You can open a bank account without a PAN card. You can use your Aadhaar card or Form-60 in place of your PAN card.

• Who is eligible for a PAN card?

All Hindu Undivided Families (HUF) and individuals are eligible for PAN with a total annual income exceeding the limit for non-taxable income.

• How can I obtain TAN?

The companies and employers are required to submit form 49B to get a TAN online through the NSDL-TIN website or visit a nearby situated facilitation center of the TIN. 

• How to check the TAN status?

You have to visit the NSDL-TIN website where you will see a ‘Status Track’ section. Enter your 14-digit acknowledgment number to check the status. 

• What is the due date to furnish returns for companies?

The due date for filing the income tax returns for companies is the 31st of July.

• What happens if I don't file ITR?

In case you are unable to file ITR. It can lead to penalties or imprisonment of 3 months to 2 years.

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