there are currently seven ITR Form Available to different categories of taxpayers.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms which are used by a large number of small and medium taxpayers, Can be easily filed by a person having income up to 50 lakhs and who receives income from salary, a house property / other sources (interest etc.). Similarly, Sugam is filed by individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships (LLPs)) whose total income 50 lakhs and income from business and profession is computed under the presumptive taxation provisions.
Also, individuals and HUFs not having income from business or profession (and not eligible for Sahaj filing) can file ITR-2, while those having income from business or profession can file ITR Form 3. Individuals other than individuals, HUFs and companies i.e. partnership firms, LLPs, etc. can file ITR Form 5. Companies can file ITR Form 6. Trusts, political parties, charitable institutions, etc. can file ITR-7 claiming exempted income under the Act.
The IT department on Saturday said, “The due date for filing ITR is approaching! Don’t forget to file ITR for AY 2022-23 before 31st July 2022. Spend today and avoid the stress of last minute filing.
Here are five reasons why it should be practiced to file your ITR on time:
Ever since the income tax e-filing portal was launched in June last year, there have been several occasions where the system has faced technical issues and glitches, which have led to the abridged filing of income tax returns, or any other tax obligations of taxpayers. has been interrupted. Time.
Earlier this month, on July 2, the Income Tax Department said that they have noticed that taxpayers are facing problems in accessing the ITD e-filing portal. Infosys, the vendor of the e-filing portal, said that there has been some irregular traffic on the portal for which proactive steps are being taken.
Last month, there was another glitch in the functioning of the e-filing website. It should not be forgotten that just after the portal was launched on 7th June last year, it faced several glitches in its functioning. Hence there has been a history of technical issues on the e-filing portal.
So, it is always better to be prepared and file your ITR on time or maybe even before the deadline to avoid any lapses that may delay your filing process. Last minute ITR filers can get heavy traffic on the system.
Probability of errors:
The last minute rush to file ITR can open up the possibility of errors and omissions leading to rejection of your return by the department. Untimely ITR filing has been seen as one of the mistakes that can result in error.
Some of the most common errors are – filling up of wrong ITR form, quoting wrong assessment year, and wrong personal information like name, date of birth, PAN and bank details. In addition, there may be factual errors, calculation mistakes, income is misrepresented, and additional details of investment and other income may not be missed.
It is always better to have enough time in advance when you file your ITR. It helps you to keep calm and keep filing and checking your documents thoroughly.
According to the IT department, a request for rectification can be submitted on the e-filing portal, if a notice issued by the CPC under section 143(1) or section 154 shows any discrepancy on record or by the Assessing Officer ( where the correction rights are transferred by the CPC). Correction request can be submitted only for those returns which have already been processed by CPC.
Further, the department directs that correction of tax liability, gross total income, total deduction and personal information can be done by the taxpayers on the e-filing portal.
If you fail to file your ITR on time, you will be liable to pay a certain amount as penalty to the department.
Section 234F of the Income-tax Act states, “Without prejudice to the provisions of this Act, where a person is required to furnish a return of income under section 139, he shall do so within the time prescribed in sub-section (1).” Fails to do so. The said section, he shall pay as fee…”
there is 5,000 fine if the return is furnished on or before 31st December of the assessment year. while the fine will be 10,000 in any other case.
It needs to be noted that if the total income of the individual is not more 5 lakh – then the fee payable under this section shall not exceed 1,000.
You can carry forward your losses:
If you file your income tax return on time, you will be able to carry forward your losses in subsequent years. There are two types of adjustment of losses.
As per the IT Act, if in any year the taxpayer has suffered loss from any source under a particular income, he is allowed to set off such loss against income from any other source falling under the same head. The process of adjustment of loss from one source under a particular head of income against income from other sources under the same head of income is called intra-head adjustment, for example adjustment of loss from business A and profit from business B. against.
Further, it is clarified that if in any year, the taxpayer has suffered a loss under one head of income and income under another head of income, then he shall pass on the loss from one head to the income from the other head. For example, under the head of house property to be adjusted against loss salary income. This is called inter-head adjustment.
However, specifically, the loss can be carried forward only if the return of income/loss for the year in which the loss has occurred is furnished on or before the due date of furnishing of ITR prescribed under section 139(1) .
Filing ITR helps you in your TDS claims:
Tax Deduction at Source (TDS) is a very common deduction from salary or income from other sources of an individual. However, TDS claim can be reversed by filing ITR. During e-filing, a taxpayer should sum up his income from various sources which would result in tax liability, and then deduct them from the amount of TDS applicable to your income. If the TDS of a taxpayer is more than his total tax liability in a financial year – it means refund is due from the government. For TDS, a taxpayer has to submit Form 16 which can be availed from his employer.
By filing ITR on time, you can get your TDS refund in your bank account within few months.