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Don’t skip out on ITR filing due to assessment year/financial year misunderstanding.

The covid epidemic compelled the government to repeatedly extend the deadline for submitting the income tax return (ITR). While the deadline for filing ITR for the assessment year (AY) 2021-22 was March 31, this year, it is now time for taxpayers to file tax returns for the assessment year (AY) 2022-23.

Before submitting ITR, taxpayers must be clear about the difference between the fiscal year (FY) and the assessment year.

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ASSESSMENT YEAR VS. FINANCIAL YEAR

In India, a fiscal year is defined as the period from April 1 to March 31. You make revenue throughout this time period, which is referred to as the accounting year.

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The assessment year is the year that immediately follows the fiscal year. In AY, taxpayers’ income generated throughout the fiscal year is assessed and taxed. So, basically, the AY for FY 2021-22 is 2022-23.

FORMS OF ITR

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Income taxpayers should be aware that the Finance Ministry has issued new ITR forms for the fiscal year 2022-23. The Central Board of Direct Taxes (CBDT) has announced the release of forms ITR-1 through ITR-5.

LAST DATE FOR ITR FILING

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According to the Income Tax regulations, taxpayers can submit ITR for FY 2021-22 or AY 2022-23 by July 31, 2022, if a tax audit is not required.

Income taxpayers who are subject to audit can file ITRs for AY 2022-23 or FY 2021-22 by October of the current year.

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This year, taxpayers who have engaged in a local or overseas transaction must file an ITR by November 30.

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