Covid pandemic forced the government to extend the deadline for filing the income tax return (ITR) several times. While the last date for filing ITR for the assessment year (AY) 2021-22 was March 31 this year, it’s time for taxpayers to file tax returns for AY 2022-23.
Before filing ITR, taxpayers must not have confusions over the financial year (FY) and the assessment year.
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FINANCIAL YEAR VS ASSESSMENT YEAR
In India, a financial year is the period between April 1 and March 31. During this time period, you earn income and it is considered as the accounting year.
The assessment year is the year that follows the financial year. In AY, the taxpayers’ income which is earned during the FY, is assessed and taxed. So basically, for FY 2021-22, the AY is 2022-23.
ITR FORMS
Income taxpayers must take note that the Finance Ministry has notified new ITR forms for the Assessent Year 2022-23. The Central Board of Direct Taxes (CBDT) has notified the forms ITR-1 to ITR-5.
ITR FILING LAST DATE
The taxpayers can file ITR, where a tax audit is not applicable, for FY 2021-22 or AY 2022-23, by July 31, 2022, according to the Income Tax provisions.
Cases in which audit is applicable, income taxpayers can file ITR for AY 2022-23 or FY 2021-22 by October this year.
Taxpayers who have entered into a domestic or international transaction need to file ITR by November 30 this year.
