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INCOME TAX RETURN FILING -FOR FINANCIAL YEAR 2022-23

RELEVANT TO ASSESSMENT YEAR 2023-24

All income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India are taxable as per Indian income tax laws i.e. the Income tax Act, 1961 (hereinafter referred as the "ACT").

Taxability of overseas income (such as rental income, capital gains, bank interest, dividends, etc.) arising out of your assets outside of India (such as bank accounts, stock market/securities, life insurance policies, loans, company deposits, debentures, bonds, residential properties, etc.) depends on residential status in India

RESIDENTIAL STATUS AND TAX INCIDENCE BASED ON RESIDENTIAL STATUS AS PER THE INCOME TAX ACT ARE AS UNDER :

THREE CATEGORIES OF PERSON BASED ON RESIDENCE IN INDIA

CONDITION FOR RESIDENTIAL STATUS - AS PER SECTION 6 OF THE ACT

TAX INCIDENCE - AS PER SECTION 5 OF THE ACT (Means what will be included in his total income)

Resident and Ordinary Resident in India (ROR)

Two basic conditions:

Condition 1 - Any individual who resides in India for 182 days or more in the relevant Financial Year

Condition 2- Is in India for 60 days or more in the relevant financial year and for 365 days or more in the preceding 4 Financial Years

Provided In the case of an individual who is an Indian citizen / Persons of Indian Origin and visits India then period of 60 days or more will be considered as period of 182 days or more if taxable income as per Act (i.e. income other than overseasincome) is upto Rs 15 lakhs and if taxable income as per Act is more than Rs 15 lakhs then period of 60 days or more will be considered as period of 120 days or more.

DEEMING PROVISION - an individual, being a citizen of India, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year shall be deemed to be resident in India in that previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature

All income including overseas income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person ; OR

(b) accrues or arises or is deemed to accrue or arise to him in India during such year ; OR

(c) accrues or arises to him outside India during such year :

Resident but Nor Ordinary Resident in India (RNOR)

Three Additional conditions:

Condition 1 - If an individual has been a non-resident in India in 9 out of 10 years preceding that financial year.

Condition 2- If one has been in India for less than 730 days out of 7 years preceding that financial year,

Condition 3- If an individual who is an Indian citizen / Persons of Indian Origin having taxable income as per Act (i.e. income other than overseas income) more than Rs 15 lakhs visits India for a period of 120 days or more but less than 182 days

All income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person; OR

(b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or

Note: Income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India.

Non-Resident (NRI)

If both the basic conditions (i) & (ii) as mentioned under ROR are not satisfied then the individual is determined as a Non-Resident.

All income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person; OR

(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

Basic Rules for filing Income tax Return for Financial year (FY) 2022-23 comprising of period from 01.04.2022 to 31.03.2023 also referred to as Assessment year (AY) 2023-24.

Type Of Person / Entity

Applicable Form

When You Are Required To File Income Tax Return

Due Date Of Return

Company including Section 8 Company

ITR - 6

A Company has to file the return even in case of Nil Income and also for return of loss

31st October of assessment year If required to furnish a Report u/s 92E, the 30th November of assessment year

Individuals including Salaried person / Proprietor /Non resident Individuals

ITR - 1 OR

ITR - 2 OR

ITR - 3 OR

ITR - 4 OR

If the Total Income without giving effect to the provisions of section 10(38) or section 10A or section 10B or section 10BA or section 11 and 12 or section 13A or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax.

Maximum amount which is not chargeable to income-tax:

For Individuals / NRI / HUF - Rs 2,50,000/-,
For Resident Senior citizen it is Rs 3,00,000/-
For Resident Super Senior citizen it is Rs 5,00,000/-

Individuals including Salaried person / Proprietor and HUF are also required to file return in following cases even in case the income is below the threshold limit or Nil Income or losses:

If person want to claim income tax refund.

If Resident Individual holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India.If Resident is a beneficiary of any asset (including any financial interest in any entity) located outside India

If has signing authority in any account located outside India

If person is 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 has incurred expenditure of an amount or aggregate of the amounts exceeding 1 lakh rupees towards consumption of electricity

If has deposited an amount or aggregate of the amounts exceeding Rupees 1 crore in one or more current accounts maintained with a banking company or a co-operative bank.

If has incurred expenditure of an amount or aggregate of the amounts exceeding 2 lakh rupees for himself or any other person for travel to a foreign country.

If total sales, turnover or gross receipt of the business exceeds Rs. 60 lakh during the previous year.

If total gross receipt of profession exceeds Rs. 10 lakh during the previous year.

If the total of TDS / TCS in case of a person during the previous year is Rs. 25,000 or more (Rs. 50,000 in case of resident senior citizen).

If the aggregate deposit in one or more savings bank accounts of the person is Rs. 50 lakhs or more during the previous year

In case of Return of loss which one wants to carry forward to set off against future income

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

Proof of return filing may also be required when applying for a loan or a visa.

31st July of assessment year If person is a proprietor or partner of firm whose accounts are required to be audited under this Act or under any other law for the time being in force - 31st October of assessment year If required to furnish a u/s 92E, the 30th November of assessment year

Hindu Undivided Family (HUF)

ITR - 2 OR
ITR - 3 OR
ITR - 4

Same as in case of individual

31st July of assessment year

Firms including Limited Liability Partnership (LLP)

ITR - 4 OR
ITR - 5

A firm / LLP has to file the return even in case of Nil Income or losses.

31st July of assessment year If firm whose accounts are required to be audited under this Act or under any other law for the time being in force - 31st October of assessment year If required to furnish a report u/s 92E, the 30th November of assessment year

Association of Person (AOP) / Body of Individuals (BOI) / Artificial Juridical Person including Trust , Political Parties etc. Co-operative Society Local Authority

ITR - 7

If the Total Income without giving effect to the provisions related to deductions / exemptions, if applicable, exceeded the maximum amount which is not chargeable to income-tax.

Maximum amount which is not chargeable to income-tax:

For AOP / BOI / Artificial Juridical Person - Rs 2,50,000/-
For Co-operative Society / Local Authority - No such exemption

31st July of assessment year If accounts are required to be audited under this Act or under any other law for the time being in force - 31st October of assessment year If required to furnish a report u/s 92E, the 30th November of assessment year

Additional Rules for specific persons :

Relevant Income tax Rule

Provision of said

Due Dates

139(4A)

Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall furnish a return of such income of the previous year, if the total income without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax.

31st July of assessment year If accounts are required to be audited under this Act or under any other law for the time being in force - 31st October of assessment year If required to furnish a report u/s 92E, the 30th November of assessment year

139(4B)

Every political party shall furnish a return of such income of the previous year, if the total without giving effect to the provisions of section 13A exceeds the maximum amount which is not chargeable to income-tax

139(4C)

(4C) Every—

(a) research association referred to in clause (21) of section 10;
(b) news agency referred to in clause (22B) of section 10;
(c) association or institution referred to in clause (23A) of section 10;
(ca) person referred to in clause (23AAA) of section 10;
(d) institution referred to in clause (23B) of section 10;
(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (iiiab) or sub-clause (iiiad) or sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (iiiac) or sub-clause (iiiae) or sub-clause (via) of clause (23C) of section 10;
(ea) Mutual Fund referred to in clause (23D) of section 10;
(eb) securitisation trust referred to in clause (23DA) of section 10;
(eba) Investor Protection Fund referred to in clause (23EC)or clause (23ED) of section 10;
(ebb) Core Settlement Guarantee Fund referred to in clause (23EE) of section 10;
(ec) venture capital company or venture capital fund referred to in clause (23FB) of section 10;
(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10;
(fa) Board or Authority referred to in clause (29A) of section 10;
(g) body or authority or Board or Trust or Commission (by whatever name called) referred to in clause (46) of section 10;
(h) infrastructure debt fund referred to in clause (47) of section 10,
if the total income in respect of which such research association, news agency, association or institution, person or fund or trust or university or other educational institution or any hospital or other medical institution or trade union or body or authority or Board or Trust or Commission or infrastructure debt fund or Mutual Fund or securitisation trust or venture capital company or venture capital fund is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, shall furnish a return of such income of the previous year.

139(4D)

Every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, , shall furnish the return in respect of its income or loss in every previous year .

139(4E)

Every business trust, shall furnish the return of its income in respect of its income or loss in every previous year

139(4F)

Every investment fund referred to in section 115UB, shall furnish the return of income in respect of its income or loss in every previous year

CONSEQUENCES FOR NON FILING OF INCOME TAX RETURN BY THE DUE DATES:

1.Late Filing Fees -If return is filed after the due date , the late fees would be Rs 1000/- if income is more than the maximum amount not chargeable to tax and does not exceed Rs 5 lakhs. If total income exceeds Rs 5 lakhs and return is filed after due date the late fees would be Rs 5,000/-

2.Interest under Section 234A of Income Tax Act, 1961 - Penal interest @ 1% per month or part thereof will be charged till the date of payment of taxes for late filing of return.

3. Interest under Section 234B of Income Tax Act, 1961 - Penal interest @ 1% per month or part thereof will be charged till the date of payment of taxes for late payment of taxes.

4. Interest under Section 234C of Income Tax Act, 1961 - Penal interest @ 1% per month or part thereof will be charged till the date of payment of taxes for non payment / deferment of advance tax liability.

3.Non-Carry Forward of Losses - Will not be able to carry forward losses if the return of income is not filed within due date.

4.Loss of Refund of Taxes - In case your tax payable is less than the TDS already deducted, you can claim the refund of such excess TDS by filing your Income Tax Return only.

5.Notice from department leading to Penalty and Prosecution - If a taxpayer fails to file his/her income tax altogether for an assessment year, the person will receive a notice from the Income Tax department under Section 142(1), 148, or 153A.

If ITR is not filed even after these measures, the concerned individual might face:

Penalty u/s 270A for under-reporting and misreporting of income equivalent to 50 % and 200% of the amount of tax payable respectively.

Prosecution under Section 276CC of the Income Tax Act for failure to file Income tax return and tax evasion which includes

  • For possible tax evasion exceeding Rs.25 lakhs: Penalty for not filing ITR plus imprisonment of at least 6 months, which can extend to 7 years.
  • For other cases: Prescribed penalty plus imprisonment of at least 3 months, extendable up to 2 years.

NOTE : -

BELATED RETURN PROVISION I.E. AFTER THE DUE DATE - If Any person who is required to file the return as mentioned above but has not furnished a return within the time allowed may furnish the return for the relevant financial year at any time before three months prior to the end of the relevant assessment year i.e. 31.12.2023 or before the completion of the assessment, whichever is earlier along with interest / late fees / penalties.

REVISED RETURN - If any person, having furnished a return by the due date or belated return, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before three months prior to the end of the relevant assessment year i.e. 31.12.2023 or before the completion of the assessment, whichever is earlier.

PROHIBITION ON RETURN FILING - Return filing is not allowed after three months prior to the end of the relevant assessment year i.e. after 31.12.2023 except in cases where taxes are payable. In such cases taxes are payable along with additional 25% of taxes in the Updated income return u/s 139(8A) of the Income tax Act, 1961.

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