Who need to file Income Tax Return?

As Per Section 139 of Income Tax Act, It is mandatory to file an ITR in the following circumstances: –

♦ In case of Individuals, If your Gross Total Income (i.e., Income before allowing any deductions under Section 80C to 80U) exceeds

Age of the Assessee Tax Slab
Aged up to 60 years 2.5 Lakh
Aged above 60 but less than 80 years (Senior Citizen) 3 Lakh
Aged above 80 years (Super Senior Citizen) 5 Lakh

♦ In case of HUFs/AOPs/BOIs & Artificial Judicial Persons if your gross total income (i.e., Income before allowing any deductions under Section 80C to 80U) exceeds Rs 2.5 lakh in FY 2021-22 (AY22-23)

♦ In Case of Company or a Firm, irrespective of whether you have income or loss during the financial year.

You want to claim an income tax refund.

You want to carry forward a loss under a head of income.

If you are a resident individual and have an asset or financial interest in an entity located outside India. (Not applicable to NRIs or RNORs).

If you are a resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs).

In case you are in receipt of income derived from property held under a trust for charitable or religious purposes, or a political party or a research association, news agency, educational or medical institution, trade union, a not- for- profit university or educational institution, a hospital, infrastructure debt fund, any authority, body, or trust.

If you are a foreign company taking treaty benefits on a transaction in India.

As per Seventh Proviso to Section 139-Inserted by the Finance Act,2019, under following Scenarios it is Mandatory to File ITR: –

Any person other than a Company or Firm, who is not required to furnish a return under section 139(1), would have to file income-tax return in the prescribed form & manner on or before the due date, if, during the previous year, such person-

  • Has deposited an amount, or the aggregate of the amounts exceeding Rs 1 crore in one or more current account maintained with a bank or a co-operative bank.
  • Has incurred aggregate expenditure of an amount or aggregate of the amounts exceeding Rs 2 lakh for himself or for any other person travelling to a foreign country, or
  • Has incurred expenditure of an amount or aggregate of the amounts exceeding Rs 1 lakh towards consumption of electricity.

As per Rule 12AB notified by CBDT vide Notification No. 37/2022 dated April 21, 2022, Filling of ITR is mandatory under following circumstances

  • Total business sales/turnover/gross receipts during the financial year exceeds Rs 60 lakh.
  • Total professional gross receipts exceed Rs 10 lakh during the financial year.
  • Aggregate TDS and TCS during the financial year is Rs 25,000 or more (In the case of senior citizens an increased limit of Rs 50,000 shall be applicable).
  • Total deposits in one or more savings bank accounts is Rs 50 lakh or more during the financial year.

INCOME TAX SLAB RATES APPLICABLE FOR AY 2022-23 / FY 2021-22: –

From AY 21-22, Government has given option to tax payers to file their return of Income as per Old Tax Regime (i.e., claiming the deductions) or New Regime ( i.e., without claiming the deductions). Tax rates under both the tax regime are mentioned below.

OLD TAX REGIME: –

INCOME SLAB INDIVIDUALS (AGED BELOW 60 YRS) SENIOR CITIZENS (AGED 60 YRS ABOVE BUT BELOW80 YRS) SUPER SENIOR CITIZENS (AGED 80 YRS & ABOVE)
Up to Rs. 2,50,000 Nil Nil Nil
Rs.2,50,001 to Rs.3,00,000 5% Nil Nil
Rs. 3,00,001 to Rs.5,00,000 5% 5% Nil
Rs.5,00,001 to Rs.10,00,000 20% 20% 20%
Rs.10,00,001 & above 30% 30% 30%

NEW TAX REGIME: – IF YOU ARE NOT CLAIMING DEDUCTIONS & EXEMPTIONS: –

INCOME SLAB INCOME TAX RATE
Up to Rs. 2,50,000 Nil
Rs.2,50,001 to Rs.5,00,000 5% (with Tax Rebate u/s 87A)
Rs.5,00,001 to Rs.7,50,000 10%
Rs.7,50,001 to Rs.10,00,000 15%
Rs.10,00,001 to Rs.12,50,000 20%
Rs.12,50,001 to Rs.15,00,000 25%
Rs.15,00,001 & above 30%

INCOME TAX RETURN FILING DUE DATES FOR FY 2021-22 (AY 22-23): –

Category of Taxpayer: – Due Date for Tax Filing-
FY 2021-22 *
(unless extended)
Individual / HUF/ AOP/ BOI
(books of accounts not required to be audited)
31st July 2022
Businesses (Requiring Audit) 31st October 2022

(Due date of Filing Tax Audit Report is 30th September 2022)

Businesses (Requiring Transfer Pricing Report) 30th November 2022 (Due date of Filing Tax Audit Report is 31st October 2022)

Belated Returns/ Revised return for AY 22-23 can be filled till 31st December 2022.

APPLICABLE INCOME TAX FORMS: –

Income Tax Return (ITR) is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department.

The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer like individuals, HUF, company, etc.

ITR Forms
Applicable to
Salary
House Property
Business Income
Capital Gain
Other Sources
Exempt Income
Lottery Income
Foreign Assets Foreign Income
Carry Forward Losses
ITR 1*
Individual, HUF (Residents)
Yes
Yes (One House Property)
No
No
Yes
Yes (Agricultural Income less than Rs 5,000)
No
No
No
ITR 2
Individual, HUF
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
ITR 3
Individual or HUF, partner in a Firm
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
ITR 4*
Individual, HUF, Firm
Yes
Yes (One House Property)
Presumptive Business Income
No
Yes
Yes (Agricultural Income less than Rs 5,000)
No
No
No
ITR 5
Partnership Firm/ LLP
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
ITR 6
Company
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
ITR 7
Trust
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

*Please Note: As per the Income Tax Provisions ITR-1 & ITR-4 Forms cant be used by a Tax Payer if he/she has held unlisted equity shared at any time during the previous year. In such cases ITR-2 & ITR-3 should be used. Hence, if the Tax Payer is having only salaried income , he/she is required to furnish return in ITR-2 Form and not in simplified ITR-1 Form.

FREQUENTLY ASKED QUESTIONS: –

Q1. How to claim an income tax refund after the due date?

An income tax refund can be claimed only when you file ITR. However, if you skip the due date for filing ITR, you can file a belated return on or before 31st December of the assessment year. A penalty of Rs 5,000 is charged for the delay in filing of return. However, if the total income of the person is less than Rs 5 lakh, then the fee payable is Rs 1,000.

Q2. Under which section income tax return is filed after the due date?

Section 139(4) allows for the filing of a belated return i.e., Return after the due date. A penalty of Rs 5,000 is charged for the delay in filing of return.

However, if the total income of the person is less than Rs 5 lakh, then the fee payable is Rs 1,000

Q3. How to revise income tax returns?

If the taxpayer wants to revise the original return due to some amendments, the same can be done using the revised return under Section 139 (5). The revised return can be filed as per the standard procedure followed for original return filing. However, the taxpayer has to submit the ITR under Section 139(5). The entire process of e-verification needs to be completed while revising the return.

Q4. What you can do in case you did not file Income tax Return till the due date of filing belated return?

Taxpayers cannot file any return once this date is passed. However, if the return was missed due to an extreme situation, you can lodge a request to your A.O. seeking permission to file past returns under Section 119.

Q5. How to respond to a defective return?

If the Assessing Officer considers the return filed to be defective, then notice of defective return shall be sent and the assessee will have an opportunity to rectify the defect within a period of fifteen days from the date of receipt of such notice. This AO may consider to further allow an extended period on the ground of application.

Step 1: You must revise your return addressing the defects the Income Tax Department has pointed out within a period of 15 days from the receipt of intimation order under Section 139(9).

Step 2: You can seek an extension by writing to your local Assessing Officer if you fail to revise your income tax return within 15 days.

If the defect is not rectified within a period of fifteen days or the extended days allowed, the original return will be treated as an invalid return. This means it will be considered as if no income tax return has been filed.

Income Tax Return Filing AY 22-23 Slab Rates Due Dates & Relevant ITR Forms

Q6. Is it mandatory to file income tax return if my earning is below Rs 250,000?

No, it is not mandatory to file an income tax return if your annual income is below Rs 250,000. However, even those who are out of the tax net should consider filing a ‘Nil Return’ to maintain a record. There are several instances where income tax returns are considered a proof of employment — for instance, when you are applying for a passport or taking a loan.

Q7. What should one do in case of discrepancies in actual TDS and TDS credit under Form 26AS?

Often, mismatches and discrepancies in actual TDS and TDS credit under Form 26AS are attributed to wrong information provided in the TDS return. Approach your employer/deductor to file a revised TDS return after making the necessary corrections.

The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by it.

Q8. Who can claim Rebate u/s 87 A?

A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

Q9. If you find any discrepancy after due date of revised return, Whether you can update your Return?

Yes. From AY 22-23, Income tax department has given an option to update the return under section 139(8) but only if it results in increase in tax liability. For Details, refer my article dated 2nd Feb 2022 on Tax Guru

https://taxguru.in/income-tax/section-1398a-updating-itr-applicable-ay-22-23.html

Q10. How can you be sure that you have disclosed all the incomes properly?

You need to have a look at AIS and TIS for the same.

Thanks everyone for Reading. In case you have any query on the same, please reach out to me on [email protected] or you can call me on +91-9996403038.

Author Bio

Qualification: CA in Practice
Company: Khurana Himanshu & Associates
Location: Rohtak, Haryana, India
Member Since: 25 Jan 2022 | Total Posts: 8
Khurana Himanshu & Associates was founded as a multidisciplinary tax advisory and auditing firm. With the changing industry scenario and role of CA’s in the growing economy, our firm has been contributing to avenues of Management Consultancy, Business Development & Support, Corporate Taxa View Full Profile

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8 Comments

  1. P.GNANASEKARAN says:

    Sir, e verify is still not easy and therefore should be made easy. Since old pensioners are finding difficult. Is it correct to file ITR-1 for pensioners?

      1. Himanshu Khurana says:

        Hi TG Team,

        As per the Income Tax Provisions ITR-1 & ITR-4 Forms cant be used by a Tax Payer if he/she has held unlisted equity shared at any time during the previous year .In such cases ITR-2 & ITR-3 should be used.

        Hence, if the Tax Payer is having only salaried income , he/she is required to furnish return in ITR-2 Form and not in simplified ITR-1 Form.

    1. Himanshu Khurana says:

      Hi Gandhi Mohan,

      That was a general table. Please consider the below for Filling of ITR in case of holding of unlisted equity shares.

      As per the Income Tax Provisions ITR-1 & ITR-4 Forms cant be used by a Tax Payer if he/she has held unlisted equity shared at any time during the previous year .In such cases ITR-2 & ITR-3 should be used.

      Hence, if the Tax Payer is having only salaried income , he/she is required to furnish return in ITR-2 Form and not in simplified ITR-1 Form.

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