Income TAX Return Filing

Income TAX Return Filing

  • Computing tax payable
  • Filing returns
  • Rebates and Deductions
  • Professional services in accounting procedures
  • Computing tax payable
  • Filing returns
  • Rebates and Deductions
  • Professional services in accounting procedures
  •  

Income TAX Return Filing - An Overview

Income Tax Return (ITR) is a declaration made by an assessee to the Income Tax Department regarding the income and tax paid thereon. It is a proof showcasing the amount of income and the tax that has been charged on it and duly paid. Income Tax Return is paid for one financial year and the income earned in the particular financial year is shown in it.

In the ITR, it has to be shown from where the assessee is earning income- be it salary, other sources, via investments, etc.

Documents Required for Income TAX Filing

The following documents are required for filing the income tax return:

  • PAN Card
  • Aadhaar Card
  • Details of Bank Account
  • Income Source Details
  • Form 16 (that has been issued by the employer)
  • e-filing profile on ITR e-filing portal
  • Details of investment (if any)
  • Details of loan (if any)
Form
Applicability
ITR 1 (SAHAJ)
This form is for individuals (not being “not ordinarily resident”, who have an annual total income of up to INR 50 lakhs, the source of income being – salaries, one house property, other sources and agricultural income.
ITR 2
This is for individuals and Hindu Undivided Families that do not have profits or gains from business or profession
ITR 3
This is for individuals and Hindu Undivided Families that have income from profits and gains of business or profession
ITR 4 (SUGAM)
This is for resident individuals, Hindu Undivided Families and firms (except LLPs) that have annual total income up to INR 50 lakhs and the income is from business and profession as evaluated under Sections 44AD, 44DA or 44AE.
ITR 5
This is for persons other than – individuals, company, Hindu Undivided Family or person filing Form ITR-7.
ITR 6
This is for companies except the companies that claim exemption under Section 11.
ITR 7
This is for persons (inclusive of companies) that are required to file return under Sections – 139(4A), 139(4B), 139(4C) or 139(4D)

Benefits of Income TAX Return Filing

Filing the ITR will help individuals, when they have to apply fora vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns

If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund.

Income Tax Return can be used as a proof of your Income and Address.

Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.

Carry Forward Your Losses

If you are required to file your Tax returns but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000.

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Frequently Asked Questions

If a person has paid excess tax, the same shall be refunded by making credit in his/her bank account through ECS transfer.

It shall be relevant to note that ITR Filings and TDS Deduction are not the same thing. One needs to file ITR to confirm that all the taxes have been duly paid from his/her side.

The term “Defective Return Notice” denotes the time intimation given by the Income Tax Department to a Taxpayer to re-file his/ her ITR after rectifying all the errors mentioned.

A taxpayer can revise his/ her Income Tax Return only before the end of the relevant assessment year or before the completion of the assessment.

Yes, in the case of companies and business entities, it is necessary to file Nil ITR if the income earned by the company in a financial year is 0.

The term Form 16 denotes a Salary TDS Certificate issued by an executive after deducting TDS from the salary.

One needs to select a suitable form as per his/ her eligibility. In case a person wants to file his/ her ITR but is confused about ITR to be filed, contact BizOkay India Pvt. Ltd..