Complete Guide on How to File ITR in 2022-23


Paying Income Tax (IT) is the duty of a responsible citizen. In India, the Income Tax and related laws are regulated by the Government of India. As an Indian citizen, you must be aware of IT, ITR, their difference, ITR Filing, etc, even when you do not fall in the tax slab. This article gives a complete understanding of all of these.

What Does ITR (Income Tax Return) Mean?

ITR stands for Income Tax Return. The ITR is a form that has details on a person’s income and the tax that has to be paid in return. The ITR form for the respective financial year should be submitted to the Income Tax Department of India. The financial year for an ITR is usually from the 1st of April to the 31st of March of the next year. The amount that you pay to the Income Tax Department differs according to your income.

What is the Difference Between IT and ITR?

Income Tax (IT) is the tax levied on a citizen by the Government of India. An IT is paid by a person who comes under a taxable income. Income Tax Return (ITR) is a record of the above for a financial year.

Is it Necessary to File the ITR?

A person who falls under the tax bracket must file an ITR. If you fail to file ITR, you will be imposed with penalties and interests. In some cases, the violations may result in legal actions like imprisonment too.

In this process, if you pay more than the amount prescribed, the extras will be refunded to you.

Who is Eligible for the ITR?

The first eligibility is the person should be an Indian resident. For ITR filing, you must have a proper PAN card.

Apart from these, the government imposes taxes not only on individuals but also on self-employed, salaried individuals, companies, firms, Hindu Undivided Families (HUFs), groups of individuals, and local authorities.

What are the Types of ITR forms Available?

As per the Central Board of Direct Taxes (India), there are seven types of ITR forms ranging from 1 to 7. All seven forms should not be filled by an individual. Instead, the form which applies to you should be filled out. They are:

  1. ITR 1: This form is also called SAHAJ. The ITR 1 applies solely to individuals and not other entities. It applies to persons who
    • live by a salary, pension, or related means.
    • lives from a sole real estate asset.
    • gets no income from capital gains.
    • do not get any wealth through lotteries, horse racing, or related sources.
    • wish to consider his/ her spouse’s or underage child’s income with their own, as long as the income to be combined meets the aforementioned criteria.
    • An individual whose agricultural income is less than Rs. 5,000.
    • A person whose income is derived from numerous investments or sources such as schemes, fixed deposits, and so on.
    • Individuals that have no assets or property in countries other than India.
    • An individual who receives no revenue from any country other than India.
  2. ITR 2: The ITR form 2 is also for individuals who earned money from selling an asset or property.
  3. ITR 3: This form must be filled by individuals and Hindu Undivided Families (HUFs). The income for these individuals should be from profits from business or profession.
  4. ITR 4: This form is also called Sugam. This applies to resident individuals, HUFs, and firms. It excludes LLP. The individuals should have an income of up to ₹ 50 lacs.
  5. ITR 5: This form is exclusively for firms, local authorities, co-operatives, artificial judicial persons, and bodies of individuals.
  6. ITR 6: This form applies to all firms and organizations except those that claim tax exemption under Section 11.
  7. ITR 7: ITR 7 form applies to individuals and businesses that fall under Section 139(4A) and Section 139(4B).

How to File the ITR Online?

ITR filing online is very simple and a time saver. Filing ITR online is also called e-filing. An individual can file ITR online by visiting the official portal of the Income Tax Department. Here are a few steps that you must follow to file ITR online.

  • Step 1: You must first register in the portal. Registration should be done by using your PAN card.
  • Step 2: Now you must download the ITR form under the “download” section. You must choose the appropriate financial year and the type of ITR form.
  • Step 3: Follow the instructions as per the Return Preparation Software and enter the details from your Form 16.
  • Step 4: If you have a tax liability, fill in all the relevant tax details. Or else, you will have the option to skip this step. You must click confirm after this.
  • Step 5: Now, you must go to the Submit Return section and upload the XML file.
  • Step 6: The next step is to add your digital signature. If you do not have your digital signature, it is completely ok to skip this step.
  • Step 7: Now your e-filing will be successful. This will be reflected through your SM and registered e-mail. You can also download the acknowledgement form.

What are the Documents Required for ITR Filling?

Before filing your ITR, it is always advised to have all the required documents in hand. This will help you avoid the eleventh-hour rush. The required documents include:

  • Aadhar Card
  • PAN Card
  • Recent Salary Slip
  • Account Passbook (It includes your bank account, PPF account, and your post office account)
  • Form-16
  • Form-16A
  • Form-16B
  • Form-16C
  • Form 26AS
  • Investment proofs for your tax saving.
  • Proofs regarding deductions under Section 80D to 80U.
  • Bank Statement for a home loan.

All the above-required documents do not go in for an individual. You must provide whatever applies to you.

The Bottom Line

We hope that you understood the ITR filling process, eligibility, and the required documents. If you have any doubts, you can get in touch with the financial experts of Piramal Finance. Through its friendly experts, Piramal Finance will guide you even through the filing process.