New Financial year has started and people are looking forward to filing their income tax returns. However people are not able to file their income tax return for Financial Year 2022-23 and Assessment Year 2023-24.
The new Financial year 2023-24 started on 1st April 2023 and once a new Financial year starts citizens are required to file their income tax return for the last financial year, i.e. in this case 2022-23. The official time period to file income tax returns begins from 1st April and is allowed up to 31st July of a year.
The ITR Forms for Financial year 2022-23 has not been updated on the income tax portal “https://www.incometax.gov.in/iec/foportal/”. It is expected that the forms will be updated by the end of April. ITR 1 and ITR 4 will go live at first and then ITR 2, ITR 3, ITR 5. ITR 6 and ITR 7 will follow.
Don’t just jump into filing the ITR form once it gets updated on the income tax website. Make sure that your 26 AS is also fully updated with all the TDS returns. The TDS deducted by the employee or payer can be submitted up to the end of May, so the chances are that the TDS details for such people whose TDS is deducted will be updated after May.
It is also possible that the employer or payer can submit the TDS before the last date. In that case, you can view your 26AS and make sure that the deductions are made and updated for all the quarters of the last financial year. Once 26 AS has been updated you can file the return and also claim for refund, if any.
The government mandates persons who earn a specific amount of money each year to file their tax returns on or before the deadline. The individual is liable for paying self – computed tax. Unpaid taxes will be penalized by the Income Tax Department. Those earning less than the authorized income threshold can file returns voluntarily.
Making returns indicates accountability. It also makes following transactions easier for individuals and corporations because the tax authority reports their revenue after subtracting any appropriate taxes.
Even if your income is insufficient to necessitate filing taxes, it may be a good idea to do so voluntarily. Most states require the last three years’ worth of tax returns as proof when registering immovable property. As a result, it is easier to record the transaction when returns are filed.
If you intend to qualify for a home loan, you should keep a continuous record of filing returns because the lender will almost certainly require it. You should consider filing your spouse’s tax returns if you wish to qualify for a loan as a co-borrower.
In a similar way credit card providers may need documentation of return before granting a card. Similarly, before doing business with you, financial institutions may request your prior year’s returns. The government may make it mandatory for them to do so, so gently pushing people to file returns on a regular basis even if it is optional.
Whether or not you have the necessary income to file taxes, there are various advantages to doing so on time. Significant losses made by an individual or a corporation, including speculative and non-speculative, short-term and long-term capital losses, and several other types of losses, cannot be proved for exemption in subsequent years when calculating taxes.
As a result, filing returns on a frequent basis is recommended because you never know when you might need to obtain a reduction for earlier losses.