A person must submit an Income Tax Returns (ITR) form to the Indian Income Tax Department. It includes details on the individual’s earnings and the yearly taxes owed. Information included in an ITR must be specific to a fiscal year, defined as one that begins on April 1 and ends on March 31 of the following year.
Different types of income include:
- Earnings from a salary
- Gains and profits from work and profession
- Revenue from a home investment
- Gains from capital investments
- Revenue from other sources, including dividends, deposit interest, royalties, lottery winnings, etc.
Below is the list of ITR forms which are most commonly available:
4 REASONS WHY YOU NEED TO FILE AN ITR
- IT IS A SIGN OF RESPONSIBILTY
Submitting returns is the hallmark of responsibility.
The government requires that anyone who make a certain amount of money annually file a tax return by the deadline set. The person is responsible for paying the tax as computed. The income tax department will impose fines for unpaid taxes.
Those who make less than the allowed income threshold might voluntarily file returns.
1. MANDATORY IN SOME CASES
Even if your income is too little to require you to file taxes, it could still be a good idea to do so voluntarily. The latest three years’ worth of tax returns must be shown as proof when registering immovable property in the majority of states. It is simpler to record the transaction when returns are filed.
2. YOUR LOAN OR COMPANY MAY WANT TO SEE YOUR RETURN
It’s a good idea to have a consistent record of submitting returns if you want to apply for a house loan in the future since the lender will probably demand on it. In fact, if you wish to apply for a loan as a co-borrower, you can even think about filing your spouse’s income tax returns. Similarly, before providing a card, credit card firms may demand proof of return.
3. A RETURN IS REQUIRED IF YOU WISH TO SEEK AN ADJUSTMENT AGAINST PRIOR LOSSES.
For the purpose of calculating taxes, different losses experienced by an individual or a corporation, including speculative and non-speculative, short-term and long-term capital losses, and several other forms of losses, cannot be proven for exemption in following years. As a result, it’s advisable to submit returns on a frequent basis because you never know when you might need to request a reduction for prior losses.
WILL THE GOVERNMENT EXTEND THE LAST DATE FOR FILING ITR THIS YEAR AS WELL?
As of July 31, 2022, the final day to file an income tax return (ITR) for the fiscal year 2021–2022 is round the corner. However, it has been noted that many taxpayers hold off on filing their ITRs until the very last minute. Some of them even believe that, like in the previous two years, the central government has the authority to extend the deadline for reporting ITRs this year as well.
It is crucial that all taxpayers submit their ITRs before the deadline. If you don’t submit it on time or before the deadline, you’ll be charged a late filing fee as a penalty. It is important to be aware that various taxpayer classes have varied ITR deadlines or due dates.
ITR filing deadline for individuals and salaried workers
For individuals and salaried workers whose accounts do not need to be audited, the deadline for filing an income tax return is July 31, 2022.
ITR deadline for Hindu Undivided Family 2022 (HUF)
The Income Tax Rules state that Hindu Undivided Families (HUF), whose accounts do not need to be audited, must file their ITRs by July 31, 2022.
The ITR due date for taxpayers whose accounts need to be audited
Because their accounts need to be audited, some taxpayers are given longer time to file their ITRs. For these taxpayers, the deadline to submit an ITR is October 31, 2022, unless the deadline is extended by the central government.
Last day to file an ITR for taxpayers required to do so under Section 92E
Taxpayers who must file a report under Section 92E if they conducted any overseas business within a certain fiscal year. Such taxpayers must file their income tax returns by November 30, 2022.
ITR filing deadline missed
If a taxpayer misses the deadline to file their income tax return, they may still file it later with a penalty. The delayed ITR deadline is December 31, 2022.
The extension of the deadline for reporting ITRs has not yet been declared by the central government. As a result, taxpayers should submit their returns on or before the corresponding due dates listed above.
This year, the government may not extend the dates for filing ITR because of the strict vigilance and check upon transactions and exchange.