What is ITR?

Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India.

Heads Of Income:

Income from salary.

Income from house property.

Income from profits and gain of business or profession.

Income from capital gains.

Income from other sources.

Income from Salary:

Salaried employees with a total income Above 2.5lakhs must file their income tax returns with ITR-1.

why do we need to file ITR?:

The government mandates that individuals who earn a specified amount of annual income must file a tax return within a predetermined due date. The tax as calculated must be paid by the individual. Failure to pay tax will invite penalties from the Income Tax Department.

Exemptions for ITR:

>House Rent Allowance

>Leave Travel Allowance (LTA)

>Children Allowances

>Medical Expenditure and Insurance Premium

>Interest on Home Loan (Section 80C and Section 24)

>Deduction for Loan for Higher Studies (Section 80E)

>Donations (Section 80G)

>Deduction on Savings Account Interest (Section 80TTA)

What is the last date for filing ITR for ay 2022- 23?

For individuals, if the ITR is filed after July 31, then a late filing fee of Rs 5,000 will be levied. This late filing fee will be levied under section 234F. For small taxpayers whose taxable income does not exceed Rs 5 lakh, penalty of Rs 1,000 will be levied for missing the ITR filing deadline.

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