ITR Filing Guide – 2023

Here is your guide to file Income Tax Return (ITR) for Financial Year 2022-23 (AY 2023-24). Avoid common mistakes and save as much tax as possible with this comprehensive ITR filing guide for 2023.

Introduction

As per the Income Tax Act, 1961, every individual and business entity is required to file Income Tax Return (ITR) for every financial year, if their income exceeds taxable slab for that financial year. Financial year for the purposes of Income Tax returns is a period of 12 months starting from April and ending in March (next year). For e.g. incomes earned during 01-APR-2022 to 31-MAR-2023 are required to be filed in the ITR for Financial Year 2022-23.

The last date to file such ITR is usually July 31 of the following year, which is July 31, 2023 for FY 2022-23.

This guide is designed for individuals having Salary Income, Income from FD/Savings interest, Income from House property etc. The instructions in following sections are curated for individual ITR filing and should not be considered for business ITR. The instructions in this guide are for information purposes only and do not constitute legal advice. One must consult a practicing Tax consultant or a Chartered Accountant for proper legal advice in terms of tax computation and return filing.

Information Required for filing ITR

Filing ITR is a two step process. First you need to login to the Income Tax portal and submit your income details. This includes income from salary, other sources, house property etc. Secondly, you need to verify your return using Aadhar based OTP. It is mandatory to link your Aadhar with PAN for instant verification using Aadhar OTP.

Get ready with following items before you proceed to file the ITR (whether yourself, of through a tax professional):

1. Income Tax PAN
2. Aadhar Number
3. Details of Income from Salary (Form 16)
4. Details of Income (or Loss) from House Property
5. Statement of Tax Deducted at Source
6. Access to mobile number linked to Aadhar

Download FORM-16 from Runtime Workman (or ESS Portal)

You can download your FORM-16 (details of income) from Runtime Workman (mobile app) or Runtime HRMS ESS Portal (Web Portal). Here are the instructions to download the same:

From the navigation menu, select Payroll. On Payroll page, select FORM-16. On the following page, select the financial year and click Download to download a PDF document containing your FORM-16. If you get a message that ‘FORM-16 is not available to download’, your HR Department may have disabled Income Tax module under Runtime HRMS settings. In such case, you can download your annual salary details for the Financial year using Salary Statement option on Payroll page. This document contains your income for all 12 months and should be sufficient to file your tax returns.

Download TDS Statement from TRACES Website

The easiest way to download your FORM-16 is from TRACES website which not only shows your salary income but also income from other sources like bank interest, FD interest, dividend income etc. Here are the instructions to download FORM-16 from TRACES website:

1. Open TRACES website from this link: https://services.tdscpc.gov.in/
2. If you are already a registered user, login using your User Id and Password.
3. If you are not registered, follow the instructions below ‘How to Register on TRACES website?’
4. Once logged in, select the checkbox ‘I agree to the usage and acceptance of Form 16 / 16A generated from TRACES’ and click Proceed
5. From the menu hover on ‘View/ Verify Tax Credit’ and select ‘View Form 26AS/Annual Tax Statement’
6. Under Assessment Year, select 2023-24 (for Financial Year 2022-23)
7. Under View As, select PDF
8. Click ‘View/ Download’

A PDF statement should be downloaded on your computer. This statement contains tax deducted by various agencies and your employer also.

How to Register on TRACES website?

If you haven’t used TRACES website before, here are step by step instructions to register on TRACES website:

1. Open TRACES website from this link: https://services.tdscpc.gov.in/
2. Click on ‘Register as a New User’
3. On the registration page, provide your PAN, Date of Birth, Name and click Proceed.
4. There are 4 options for validation. You can select Option 4 (Authentication through Aadhar)
5. Once authenticated using Aadhar OTP, provide your communication details to complete registration.
6. You will receive

Some Common Deductions to Claim (FY 2022-23)

Section 80CCC – Insurance Premium

Deduction for premium paid for annuity plan of LIC or other insurer

Section 80CCC provides a deduction to an individual for any amount paid or deposited in any annuity plan of LIC or any other insurer. The plan must be for receiving a pension from a fund referred to in Section 10(23AAB). Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.

Section 80CCD – Pension Contribution

Deduction for contribution to pension account

1. Deduction for self-contribution to NPS – section 80CCD (1B)
A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.

2. Employer’s contribution to NPS – Section 80CCD (2)
Claim additional deduction on your contribution to employee’s pension account for up to 10% of your salary up to Rs. 50,000.

Section 80D

Deduction for the premium paid for medical insurance

You (as an individual or HUF) can claim a deduction of Rs. 25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000 if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000, which has been increased in Budget 2018 from Rs 30,000.
In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs 1 lakh.

Section 80DD

Deduction for rehabilitation of handicapped dependent relative

Section 80DD deduction is available to a resident individual or a HUF and is available on:

1. Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative
2. Payment or deposit to specified scheme for maintenance of handicapped dependent relative.
3. Where disability is 40% or more but less than 80% – fixed deduction of Rs 50,000.
4. Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,00,000.

To claim this deduction a certificate of disability is required from prescribed medical authority.

Section 80DDB

Deduction for medical expenditure on self or dependent relative

1. For Individuals and HUFs below age 60

A deduction up to Rs. 40,000 is available to a resident individual or a HUF. It is available with respect to any expense incurred towards treatment of specified medical diseases or ailments for himself or any of his dependents. For an HUF, such a deduction is available with respect to medical expenses incurred towards these prescribed ailments for any of the HUF members.

2. For senior citizens and super senior citizens

In case the individual on behalf of whom such expenses are incurred is a senior citizen, the individual or HUF taxpayer can claim a deduction up to Rs 1 lakh. Until FY 2017-18, the deduction that could be claimed for a senior citizen and a super senior citizen was Rs 60,000 and Rs 80,000 respectively. This has now become a common deduction available up to Rs 1 lakh for all senior citizens (including super senior citizens) unlike earlier.

3. For reimbursement claims

Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section.
Also remember that you need to get a prescription for such medical treatment from the concerned specialist in order to claim such deduction. Read our detailed article on Section 80DDB.

Section 80E

Deduction for interest on education loan for higher studies

A deduction is allowed to an individual for interest on loans taken for pursuing higher education. This loan may have been taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a legal guardian.
80E deduction is available for a maximum of 8 years (beginning the year in which the interest starts getting repaid) or till the entire interest is repaid, whichever is earlier. There is no restriction on the amount that can be claimed.

Section 80EE

Deductions on home loan interest for first time home owners

The deduction under section 80EE is available only to home owners (individuals) having only one house property on the date of sanction of the loan. There is an additional deduction of Rs 50,000 available on your home loan interest on top of deduction of Rs 2 lakh (on interest component of home loan EMI) allowed under section 24.

Section 80G

Deduction for donations towards Social Causes

The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction. From FY 2017-18 any donations made in cash exceeding Rs 2,000 will not be allowed as deduction. The donations above Rs 2000 should be made in any mode other than cash to qualify for 80G deduction.

a. Donations with 100% deduction without any qualifying limit

• National Defence Fund set up by the Central Government
• Prime Minister’s National Relief Fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
• Fund set up by a State Government for the medical relief to the poor
• National Illness Assistance Fund
• National Blood Transfusion Council or to any State Blood Transfusion Council
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• National Sports Fund
• National Cultural Fund
• Fund for Technology Development and Application
• National Children’s Fund
• Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
• The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
• The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
• Chief Minister’s Earthquake Relief Fund, Maharashtra
• Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
• Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
• Prime Minister’s Armenia Earthquake Relief Fund
• Africa (Public Contributions — India) Fund
• Swachh Bharat Kosh (applicable from financial year 2014-15)
• Clean Ganga Fund (applicable from financial year 2014-15)
• National Fund for Control of Drug Abuse (applicable from financial year 2015-16)

b. Donations with 50% deduction without any qualifying limit

• Jawaharlal Nehru Memorial Fund
• Prime Minister’s Drought Relief Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation

c. Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

• Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
• Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India

d. Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

• Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
• Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
• Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
• Any corporation referred in Section 10(26BB) for promoting the interest of minority community
• For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.

Section 80GGA

Donations made towards scientific research or rural development

Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assesses except those who have an income (or loss) from a business and/or a profession.

Mode of payment: Donations can be made in the form of a cheque or by a draft or in cash; however, cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed is considered eligible for deductions.

Section 80GGC

Deduction on contributions given by any person to political parties

Deduction under section 80GGC is allowed to an individual taxpayer for any amount contributed to a political party or an electoral trust. It is not available for companies, local authorities and an artificial juridical person wholly or partly funded by the government. You can avail this deduction only if you pay by any way other than cash.

Section 80 TTA

Deduction from Gross Total Income for Interest on Savings Bank Account

Section 80TTA provides a deduction of Rs 10,000 on interest income. This deduction is available to an Individual and HUF.
This deduction is allowed on interest earned:

• From a savings account with a bank
• From a savings account with a co-operative society carrying on the business of banking
• From a savings account with a post office

This deduction is NOT allowed on interest earned on time deposits. Time deposits mean deposits repayable on expiry of fixed periods. It shall not be allowed for

• Interest from fixed deposits
• Interest from recurring deposits
• Any other time deposits

Maximum Deduction – The maximum deduction is limited to Rs 10,000. If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000. (You have to consider your total interest income from all banks where you have accounts).

How to claim the deduction – First add your total interest income under the head ‘Income from Other Sources’ in your Return. The deduction is shown under section 80 Deductions under section 80TTA.

Section 80U

Deduction for person suffering from physical disability

A deduction of Rs.75,000 is available to a resident individual who suffers from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a deduction of Rs 1,25,000.

New Tax Regime vs. Old Tax Regime

The income tax department introduced a New Tax Regime from FY 2021-21 which prescribes a different taxation slabs with higher amount of incomes and lower tax rates but at the same time disallowing some deductions under Chapter VI-A (80 C etc.). An individual has an option to select the Old or the New Tax Regime for computing tax liability while filing the return. For Runtime HRMS users, the tax regime can be selected by an individual using the Investment Declaration options under Requests section.

Filing ITR

ITR filing is relatively simple and is available on Income Tax website (https://www.incometax.gov.in). The ITR filing process is a self-service workflow and anyone can file the return. However, if you are not comfortable with various tax provisions, sections and general tax calculations, it is recommended to engage a practicing tax consultant or a chartered accountant to file the return for you.