Important Updates for Income Tax Return Filing: For the fiscal year 2023-24, it is mandatory for all salaried individuals to postpone the filing of their income tax returns (ITR) by a minimum of two months. In accordance with customary practice, employers distribute Form 16 prior to June 15, or around mid-June. Form 16 for the assessment year 2024-25 (FY 2023-24) must be issued no later than June 15, 2024.
An essential document, Form 16 serves a critical function in the process of submitting income-tax returns (ITR), particularly for salaried individuals. Employers must provide Form 16 to their personnel at the end of each fiscal year. This substantial document breaks down the tax amount withheld from an employee’s paycheck comprehensively. The employee has duly submitted it to the government.
The Form 16 consists of two sections. The employer submits Form 16-A, which provides a summary of the employee’s tax deductions, to the I-T department. Although it depicts the tax situation of the employee, it should not be confused with Form 16. Form 16 and Form 16-A each fulfill distinct objectives.
Form 16-B consolidates employee salary, deductions, and supplementary income. The document includes employee and employer information to create a complete financial picture.
The Income Tax Department limits ITR submissions for the current fiscal year to July 31, unless the government gives further instructions. A corporation that sends Form 16 on June 15 gives taxpayers 45 days to file their taxes.
Guide on requesting a tax return filing extension from the IRS
Besides the ITR-V (verification form) and ITR acknowledgement form, the I-T Department has produced six documents for this year’s filing using a specialized portal for e-filing income tax returns.
Last week, the I-T Department stated that taxpayers can electronically file FY 2023-24 (AY 2024-25) ITR-1, ITR-2, and ITR-4 income tax return forms on its portal. These ITR forms allow eligible taxpayers to login and file their FY 2023-24 ITRs.
The Internal Revenue Service earlier issued offline Excel utilities for Forms ITR-1, ITR-2, and ITR-4. Furthermore, we have made the offline JSON utilities for ITR-1, ITR-2, ITR-4, and ITR-6 available for FY 2023-24 (AY 2024-25).
Corporations, enterprises, and individuals utilize various ITR forms such as ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. The streamlined tax returns ITR-1 and ITR-4 accommodate a substantial segment of the small and medium-sized taxpayer population.
A resident who meets the following criteria may submit an ITR-1:
- The fiscal year’s total income does not surpass Rs 50 lakh.
- Sources of income include a salary, a single-family residence, a family pension, agricultural income (up to Rs 5,000), and
additional sources, including:
- Compound Interest on Savings Accounts
- Deposit Interest (from a bank, post office, or cooperative society)
- Interest on Refunded Income Tax
- Interest accrued on supplemental compensation
- Any Additional Interest Revenue
- The household pension
- The pooling of spousal or minor income is done (but only if the source of income falls within the aforementioned restrictions), excluding that which is governed by the Portuguese Civil Code.
People, Hindu Undivided Families (HUFs), and corporations (except LLPs) with a combined income of Rs 50 lakh and business and profession revenue can file Form ITR-4. “Income from Business and Profession, which is computed presumptively, in addition to salary/pension, other sources (interest, dividends, etc.), one house property, and more” is received by them.
Methods for Filing ITR
Taxpayers can file ITRs online, offline, or partially online. You can submit IT returns online and offline using JSON and Excel.
Online: One can file an income tax return online by logging into the e-filing income tax portal.
The ‘File income tax return’ option pre-populates most taxpayer information from their Annual Information Statement (AIS) and Form 26AS. You can cross-reference documents and fill out the form. You need the following documents to file ITR online: Form 16, Form 16A, additional TDS certificates, interest certificates, salary receipts, etc.
Downloadable Excel and JSON utilities from the e-filing income tax portal allow offline ITR filing. Offline utilities allow taxpayers to recover pre-populated data from their e-filing income tax account.
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