As per the direct taxation rules, all taxpayers are required to pay a certain amount of tax if their total taxable income exceeds a certain threshold. Paying your taxes is a social and legal obligation, failing which you will have to pay a penalty.
To save yourself from this penalty, you must file your Income Tax Return (ITR) before the stipulated deadline. ITR is a form that details your income, expenses, deductions, applicable tax rate, taxability, and refunds.
There are several types of ITR forms a taxpayer must choose based on their category and their income type. So, if you’re wondering, “What are the different types of ITR forms?”, and want to know more about their applicability, read on.
Before learning about the different ITR forms, it is important to know when you need to file this form.
As per the income tax rules, all taxpayers must mandatorily to file an ITR form if any of these conditions is applicable:
If your total taxable income exceeds the basic exemption limit, which varies depending on your age category
The basic exemption limit is ₹2.5 Lakhs for taxpayers below 60 years of age, and ₹3 Lakhs and ₹5 Lakhs for senior citizens between 60 and 80 years and above 80 years, respectively
If you have invested or earned from foreign assets
If you want to apply for a visa
If you wish to file a refund from the income tax authorities
Any firm or company, irrespective of the profit or loss
Reports point out that the ITR filing process for the assessment year 2022-23 starts from the first week of June. The last date for filing your Income Tax Return will be July 31, 2023. However, the last date for filing ITR for businesses requiring an audit will be October 31, 2023.
Section 234A of the Income Tax Act of 1961 provides for charging interest if you fail to file ITR before the due date. As per the Income Tax rules, an interest of 1% per month on the unpaid amount of taxes.
In addition, as per Section 234F, you will have to pay a late fee for delayed filing. The late fee will be ₹5,000 if the total tax liability is more than ₹5 Lakhs and ₹1,000 for lesser amounts.
The types of ITR forms applicable for individuals are ITR 1, ITR 2, ITR 3, ITR 4S, and ITR 5.
The due date for filing ITR for the AY 2022-23 is July 31, 2023. However, for businesses requiring an audit, the late date for filing their ITR is October 31, 2023.
If you fail to file your ITR on time, you will be charged 1% interest on a monthly basis on the taxes due. In addition, you will have to pay a late fee of ₹1,000 if the due amount is less than ₹5 Lakhs or ₹5,000 on a higher amount.
The different types of ITR forms that are applicable to both individuals and firms are ITR 1, ITR 2, and ITR 4S.