News Karnataka
Monday, February 26 2024

Ease up your ITR tax filing hassle for 2023

Tax Buddy
Photo Credit : Pexels

The filing season has begun to work its compliance! We understand you’re overwhelmed with the processes that need to get factored in. But here is when you must let go of the stress. You have many platforms available online to assist you; one such option is with facilitating tax filing, from the start to every last tax planning discourse. They operate on affordable subscription models. As soon you get aligned with them, they will also assign you a tax expert for any queries you might have. For a better hassle-free tax planning experience click the button below.

click here 2 As stated by the CBDT, corresponding with the Assessment Year 2023-24. These ITR forms will become effective on April 1, 2023, and have been announced in advance to enable taxpayers to file their returns at the beginning of the next Assessment Year. 

How to make ITR tax filing Easy?

To make ITR tax filing easier for taxpayers, no significant changes have been made to the ITR Forms compared to the previous year’s forms. Only the necessary changes required by amendments in the Income-tax Act, of 1961 have been made. 

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) align with small and medium taxpayers. Sahaj can be used by a resident individual who earns up to Rs. 50 lakh and receives income from salary, one house property, other sources (interest, etc.), and agricultural income up to Rs. 5 thousand. Sugam can be filed by individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships (LLPs)) who are residents with total income up to Rs. 50 lakh and income from business and profession calculated under sections 44AD, 44ADA, or 44AE. ITR Form 2 can get filed by individuals and HUFs who do not earn income from business or profession but are not eligible for filing Sahaj. Those who earn income from business or profession can file ITR Form 3. Partnerships, LLPs, and other non-individual entities can file ITR Form 5, while companies other than those claiming exemption under section 11 can file ITR Form 6. Trusts, political parties, charitable institutions, and other entities claiming exempt income under the Act can file ITR Form 7. To streamline the ITR filing process, not only have all the ITR forms been notified in advance this year, but the method of filing ITR Forms has also remained unchanged from last year.

The personal income tax has been updated with the following changes:

  1. Those earning up to 7 lakhs can benefit from a rebate under section 87A in the new tax regime.
  2. The new tax regime includes different tax rates for different income ranges: no tax for income between 0-3 lakhs, 5% for income between 3-6 lakhs, 10% for income between 6-9 lakhs, 15% for income between 9-12 lakhs, 20% for income between 12-15 lakhs, and 30% for income above 15 lakhs.
  3. Individuals earning Rs. 15.5 lakhs or more in the new tax regime can claim a standard deduction of Rs. 52,500.
  4. The highest surcharge rate has been reduced from 37% to 25% in the new income tax regime.
  5. The tax exemption limit for leave encashment has been increased from 3,00,000 to 25,00,000. 

If you miss the deadline for filing your income tax return, you will be charged interest at a rate of 1% per month or part month on the outstanding tax amount under Section 234A. Besides, if your income exceeds Rs. 5 lakhs, you will need to pay a late fee of Rs. 5,000 under Section 234F. On the other hand, the late fees will get reduced to Rs. 1,000 in a situation when your income is less than Rs. 5 lakhs. Filing your tax return on time allows you to carry forward losses from the stock market, mutual funds, properties, or any of your businesses to offset them against next year’s income and reduce your tax liability. However, if you miss the deadline, you won’t be able to carry forward any losses for future adjustments, even if you file a belated return. You will still have to pay the late fee and interest charges.

Wrapping up

The due date for filing your Income Tax Returns (ITR) without penalties is 31st July 2023, while the deadline for filing the belated return is 31st December 2023 for the current year. Once you file your return and complete the verification process, it typically takes 20-45 days for the income tax refund to be issued. If there is a delay, you can contact the Centralised Processing Centre (CPC) for an update on the status of your refund.

Get your ITR filed in a few steps with one of the best tax filing platforms online.

Photo by Nataliya Vaitkevich on Pexels

Share this:
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Find the best odds at 10Cric and IPL Betting 2023! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp