The Central Board of Direct Taxes (CBDT) notified income tax return (ITR) forms for the financial year (FY) 2021-22 (assessment year or AY 2022-23) on March 30, 2022 and has also enabled the filing option for ITR 1, ITR 2 and ITR 4 form through its website www.incometaxgov.in. CBDT has also widened the scope of individuals required to file returns, by including those individuals who meet certain specified criteria/conditions announced via a notification released on April 21, 2022. Hence, it’s important for an individual taxpayer to know the correct type of ITR form applicable to him/her
Which ITR form is applicable to you?
The important question is which ITR form should be used and by whom. Although the instructions to file ITR forms for FY 2021-22 are not available yet, the details based on previous year instructions and ITR forms for FY 2021-22 are summarised below:If the ITR is not filed by the due date which is currently July 31, 2022 (for salaried individuals), penalty ranging from Rs 1,000 up to Rs 5,000 will be levied and needs to be remitted before the ITR can be filed. This fee or penalty has to be paid even if the tax liability is nil. Further, in case of belated filing, taxpayers will also not be able to carry forward certain losses for set-off in the future years
In case you did not file ITR (original or belated) within timelines provided under the Income-tax Act, now you can now file an updated ITR under Section 139(8A) of the Act within 2 years from the end of the relevant assessment year. The updated ITR can be filed if you satisfy the conditions mentioned in the aforesaid section. However, you will need to pay an additional income tax of 25% or 50% on aggregate of income tax and interest payable, as applicable. This would be over and above the regular income-tax, interest and applicable fee payable for delayed payment of taxes and/ or filing of ITR.
One must also validate the information captured by the tax authorities in Annual Information Statement (AIS) before filing the ITR for FY 2021-22 to avoid receiving income/ tax mismatch notices at a later date resulting in long drawn litigation.
Source-https://economictimes.indiatimes.com/wealth/tax/itr-filing-which-income-tax-return-form-is-applicable-to-you-for-fy-2021-22/articleshow/91464367.cms