Struggling with tax forms complexity? I-T department introduces e-filing versions for FY 2023-24

Income Tax Return: Feeling overwhelmed by complex tax forms? Fear not! The Income Tax Department has recently rolled out the e-filing versions of the ITR-1, ITR-2, and ITR-4 forms for the fiscal year 2023-24 (assessment year 2024-25). This initiative aims to streamline the process of filing income tax returns for taxpayers. The deadline for submitting income tax returns (ITRs) for the fiscal year 2023-24 (AY 2024-25) is July 31, 2024.

Various methods are provided by the department to facilitate the filing of returns, catering to different preferences and requirements.

Online submission remains the most favoured method, enabling direct filing of ITR through the Income Tax Department’s e-filing portal.

For those who prefer an offline approach, downloadable utilities in Excel and JSON formats for ITR-1, ITR-2, ITR-4, and even ITR-6 for FY 2023-24 (AY 2024-25) are available. These tools allow taxpayers to prepare their ITR offline and then upload the compiled data to the e-filing portal for submission.

Taxpayer classification

There are seven types of ITR forms, namely ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7, designed to accommodate various individuals, businesses, and companies. Each form serves different taxpayers' needs and situations.

ITR-1 (Sahaj) is the simplest form suitable for resident individuals with income up to ₹50 lakh from salary, one house property, and other sources.

ITR-2 caters to a wider range of taxpayers, including individuals and Hindu Undivided Families (HUFs) with income from diverse sources, multiple properties, foreign income, etc.

ITR-3 is intended for individuals or HUFs whose income falls under the category of "profits or gains of business or profession."

ITR-4 (Sugam) is for individuals and HUFs with income from businesses or professions under presumptive taxation schemes.

ITR-5 is used by entities beyond individual taxpayers, such as firms, LLPs, cooperative societies, etc.

ITR-6 is specifically tailored for companies registered under the Companies Act.

ITR-7 is for firms, companies, local authorities, etc., claiming exemption under Section 139 (4A) for income earned from charitable or religious trusts.

The process of filing an ITR involves two primary methods: online filing and offline filing.

Easy online filing

For online filing, accessing the income tax e-filing portal is the initial step. New users should register using their PAN card details, while existing users can log in with their credentials. Once logged in, users should select the option to "File Income Tax Return" from the e-filing section. 

Subsequently, they need to choose the relevant assessment year (AY) for which they are filing the return, such as AY 2024-25 for FY 2023-24. Next, users must select the appropriate ITR form based on their income profile. 

The portal will then guide them through filling in the necessary details, including income from various sources, deductions, and taxes paid. After completing the form, users can electronically verify their return using Aadhaar OTP, net banking, or EVC. Alternatively, they can send a signed copy of ITR-V to a designated CPC centre for verification.

Offline filing simplified

For offline filing, individuals need to start by downloading the ITR utilities provided by the Income Tax Department, available in either Excel or JSON formats on their website. Once downloaded, users can utilise these utilities to input their income details and draft their ITR offline. 

After completing the preparation, they should upload the created data file to the income tax e-filing portal for submission. Similar to online filing, users are required to electronically authenticate their return using Aadhaar OTP, net banking, or EVC for verification purposes.

Experts advise taxpayers to ensure they have all necessary documents before beginning the filing process and may seek assistance from tax professionals if needed.