ITR filing FY 2023-24: The
Income Tax Department
has made filing
income tax
returns (ITR) for AY 2024-25 easier with three updated utilities. Whether you’re an individual or a Hindu Undivided Family (HUF) needing to file
ITR-3
for FY 2023-24, you now have the option to choose between offline (Java), online, or Excel-based utilities.
As per an ET report, you can download these utilities from the e-filing ITR portal’s ‘Downloads’ section.
The deadline for filing income tax returns for FY 2023-24 (AY 2024-25) is July 31, 2024, for those exempt from an income
tax audit
.
Divya Jokhakar, a partner at a Mumbai-based CA firm and co-convenor of the Bombay Chartered Accountant Society (BCAS), outlines the differences among the three utilities:
– Excel Utility: You download it, fill in tabs, and create an uploadable file.
– Online Utility: Accessed through the e-filing ITR portal, where you fill out each page and submit your ITR. Most information is automatically filled in.
– Offline Utility: Downloadable Java-based software, not Excel. It’s simpler for those who prefer not to use the online process.
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So, who should opt for ITR-3 filing?
According to the Income Tax Department’s FAQ, ITR-3 is for individuals or Hindu Undivided Families (HUFs) with income from “profits or gains of business or profession” who can’t file ITR-1, ITR-2, or ITR-4.
Jokhakar says that ITR-3 may be necessary if someone receives payment from a partnership firm or LLP, as this income is considered Business/Profession Income. However, those opting for presumptive taxation must file ITR-4, regardless of their business or professional income.
Income from trading in derivative contracts of the stock market (options and futures) is classified as business income. If this income exceeds certain thresholds, a tax audit is necessary. Therefore,
taxpayers
with such income must file ITR-3 if they haven’t opted for the presumptive taxation scheme.
Choosing the right tax filing utility
Each utility serves a particular group of taxpayers. Chartered accountant Mihir Tanna, associate director at S.K Patodia LLP, clarifies which utility is suitable for different taxpayers.
Online Utility: Taxpayers log into the e-filing ITR portal to file their ITR. Most information is automatically filled in the form. Users will see pre-filled data and can easily confirm and add any additional information before filing.
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Offline Utility (Java): This Java-based utility, usually used by taxpayers with extensive data, allows for filing ITR offline. It’s handy for individuals with detailed records or those subject to a tax audit. Additionally, taxpayers can save a draft ITR using this utility.
Excel Utility: This offline utility uses Excel format. It’s an alternative for taxpayers facing difficulties with the Java-based utility. However, users must be cautious while handling data to prevent Excel utility corruption. One common issue with offline utilities is version updates, which can cause errors during ITR upload if there’s a mismatch in utility versions.
Updates to offline utility for ITR-1, 2, and 4
The Income Tax Department has updated the common offline utility for ITR-1, 2, and 4 as of May 9, 2024. Experts note that this update isn’t significant and anticipate further updates until July.
Transitioning from online to offline filing
According to a FAQ by the tax department, individuals can switch from online to offline filing even if they have partially filled their online ITR.
The Income Tax Department states, “You can use the Import Draft ITR filled-in online mode option in case you have already partially filled your return in online mode and wish to change the mode of filing from online to offline. This applies to ITRs available in online mode, currently ITR-1 and ITR-4.”
