Income Tax Return Guidelines for Assessment Year 2023-24 -Important Provisions

For the financial year 2022-23, it is imperative to understand the rules and regulations surrounding the submission of income tax returns for assessment year 2023-24. From individuals to associations and businesses, the obligation to file tax returns varies based on income limits, type of income, and several other factors.

Who has to submit return of income?

• Individual, Hindu Undivided Family, Association of Person, Body of Individual and Artificial Juridical Person, whose taxable income is more than Rs. 2,50,000, for senior citizen whose age is more than 60 years and less than 80 years, income limit is up to Rs. 3,00,000 and for super senior citizen whose age is more than 80 years income limit is up to Rs. 5,00,000 have to submit return of income under section 139(1) of the Income Tax Act, 1961. Taxable income means after claiming all kind of deductions under Chapter VIA (Sections 80C to 80U) and under section 10(38) under the Act.
• All Non Resident Indians (except cover u/s 115AC and 115G of the Income Tax Act), whose taxable income is more than Rs. 2,50,000.
• Any charitable or religious trust registered u/s 12AB of the Act, any societies registered under The Societies Registration Act, whose gross income before deductions under section 11 and 12 exceeds Rs. 2,50,000.
• Any Scientific Institute, News Agencies, University or any Educational Institute, Hospital, any Medical Institute or Trade Union, after getting deductions under sections 10(21), (20B), (23A), (23B), (23C), (23Civ to via) or 24 exceeds Rs. 2,50,000.

• All the Partnership Firms, Limited Liability Partnership and Companies, whether they have profit or loss.
• A person who has not submitted his return of income, but received notice u/s 142(1) or 148 has to submit his return of income.
• Any person who have deposited Rs. 1,00,00,000 or more in his one or more current account.
• Any person who has spent Rs. 2,00,000 or more for foreign trip for himself or others.
• Any individual who has paid more than Rs. 1,00,000 for consumption of electricity.

Please remember that whether tax is payable or not, there may be refund, return of income is to be submitted.

Any Property is owned outside India.

As per amendment made under section 139, any resident person is owner of any property outside India, has to submit his return of income compulsory.

Due date for different assesses:

Last date for submitting return of income are as under:

• Any assesse responsible for submitting Report Under Section 92E for an international Transections 30^th November
• Company, or a person (other than a Company)

Whose accounts are required to be audited Under Income Tax Act or any other law; or a partner of a firm whose accounts are required to be audited under Income Tax Act or any other law for the time being in force, or the spouse of such partner if the provision of section 5A applies to such spouse 31^st October

• In the case of any other assesse other than above 31^st July

Audit Report is to be submitted 30^th September

Return of is to be submitted in following Form:

As per Notification No 4/2023 dated 10^th February, 2023, 7 returns are announce, which are as under:

ITR NO                 Who has to submit.

ITR I Sahaj	Resident Individual, whose income is up to Rs. 50,00,000 and source of income is from Salary, One House Property and other income like interest etc. and income from agriculture up to Rs. 50,000
ITR 2	Individual and HUF assesse who has no income from Business or Profession
ITR 3	Individual and HUF assesse who has income from Business or Profession
ITR 4	Resident individual, HUF, Firm (other then LLP) whose income is up to Rs. 50,00,000 and  Income from Business or Profession calculated u/s 44AD, 44ADA or 44AE
ITR 5	Individual, HUF, Company and other assesse who are not eligible to file ITR 7
ITR 6	All Companies except who are no claiming deduction u/s 11
ITR 7	Charitable and Religious Trust and Company, claiming exemption u/s 11

 Provision pertaining to Late Fee:

As per Section 234F, if any assesse is not submitting return of income before due date mention above are liable to pay late fee of Rs. 5,000. If the total income of an assesse is less than Rs. 5,00,000 are liable to pay late fee of Rs. 1,000.

Assesse cannot file its return of income for assessment year 2023-24 after 31^st December, 2023. 

Interest u/s 234A:

Any assesse files his return of income after due date, and if he is liable to pay tax u/s 140A, he has to pay interest @1% per month, till the date on which he has filed return of income. If an assesse has paid advance tax or tax is deducted and case is of refund, he has no to pay any interest.

Example: Mr. A has submitted his return of income on 1^st September, 2023 and liable to pay tax u/s 140A of Rs.15,000. He has to pay interest @1% per month i.e. 2 months interest i.e. Rs. 300. Instead of 1^st September if he submit his return on 31^st August, is liable to pay interest for one month i.e. Rs.150 only.

When it is compulsory to file return of income?

Up to assessment year 2005-06, it was compulsory for individual, HUF, Association of Person etc. if their income become taxable after claiming all deductions.

From assessment year 2006-07, it becomes compulsory for individuals, HUF, Association of Persons etc. if their income is taxable before claiming all kind of deduction.

From assessment year 2022-23 following conditions are introduced. As per notification issued by CBDT on 21^st April, 2022, following persons have to submit their return of income compulsory:

01. During the financial year, turnover of business or gross receipts of a person exceeds, Rs. 6oLakhs.

02. During the financial year, gross receipts of any professional person exceeds Rs. 10lakhs.

03. During the financial year, the amount of TDS or TCS exceeds Rs, 25,000 and in the case of senior citizen, it exceeds Rs.50,000.

04. During the financial year deposited more than Rs. 50lakhs in one or more Savings Bank accounts

Who can submit Paper Return?

Now a days all person have to submit their return of income online, except, a person having age of 80 years or more and are liable to submit their return either ITR – 1 (sahaj) or ITR – 4(Sugam) can submit return in Paper Form.

Any assesse who is responsible for audit under Income Tax Act, i.e. registered trusts, partnership firms, companies etc. have to submit their return of income by using Digital Signature.