Who Should File Income Tax Return and When to File in India

Who Should File an Income Tax Return?

Suppose your income exceeds the minimum exemption limit prescribed by the Indian Income Tax Act, 1961. In that case, you are required to file an income tax return. The due date for filing an income tax return is 31 July.

The minimum exemption limit for different categories of taxpayers is as follows:

• For individuals below the age of 60 years: ₹ 2,50,000
• For senior citizens (aged 60 years or above but less than 80 years): ₹ 3,00,000
• For super senior citizens (aged 80 years or above): ₹ 5,00,000

If you are an individual with an annual income of less than ₹ 5 lakh and have no tax liability for the year, then you are not required to file an income tax return. However, it is advisable to file a return even if you are not liable to pay any tax, as it will help you in future when applying for loans or Visas.

When to File an Income Tax Return?

Income tax filing due dates for FY 2022-23 (AY 2023-24) is 31 July 2023.

If you fail to file your return by the due date, you will be liable to pay a late filing fee of ₹5,000. In addition, you may also be subject to interest and penalty charges. Thus, you must file your income tax return on time to avoid unwanted charges or penalties.

Different Types of Income Tax Returns

In India, there are three income tax return forms - ITR-1, ITR-2 and ITR-3.

ITR-1 is for individuals with a total income of up to ₹ 5 lakhs from salary, one house property and other sources such as interest income.

ITR-2 is for individuals with income from salaries, more than one house property, capital gains or foreign income.

ITR-3 is for those who are partners in a firm and have to file their return of income from the business or profession.

So, if your total income is below ₹ 5 lakhs and you only have a salary and one house property income, then you can file an ITR-1 form. Suppose your total income is more than ₹ 5 lakhs, including salary, multiple properties or capital gains. In that case, you will need to file an ITR-2 form. And finally, if you're a partner in a firm with business or professional income, you must file an ITR-3 form.

Documents Required for Filing Income Tax Return

If you are an Indian resident with income from sources in India, you must file an income tax return. The documents required for filing income tax returns include the following:

• Income tax return form - This is the form you will use to report your income and calculate your taxes payable.
• PAN card - Your Permanent Account Number (PAN) is required for filing your income tax return.
• Income statements - You will need to provide details of your income from all sources, including salary, interest income, capital gains, etc.
• TDS certificates - If you have paid any tax deducted at source (TDS), you will need to furnish the relevant certificates as proof of payment.
• Investment details - Details of investments made during the year, such as in PPF, mutual funds, life insurance policies, etc., must be provided while filing the return. This is important as deductions/exemptions can be claimed on these investments.
• Bank account details - You will need to provide details of your bank account(s), including account number, IFSC code, etc., for receiving any refunds due from the department

How to File an Income Tax Return

You can do so online or offline if you are required to file an income tax return. If you choose to file online, you will need to register on the e-filing portal of the Income Tax Department. Once registered, you can log in and complete the necessary forms.

If you choose to file offline, you must download the relevant forms from the Income Tax Department website and submit them physically at your nearest Income Tax Office.

Once you have filed your income tax return, you must track the status of your return online. You can do this by logging into the e-filing portal and clicking on 'Track Return Status.

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