Income Tax Return is to be filled by filing a form of income tax to the Income-tax Department. Income Tax is a tax that is imposed on the income of the individual and business entities by the Central Government.
The filing of Income tax is the responsibility of every citizen. After filing the Income-tax Return the department verifies the declaration of income and if it is found any discrepancy or any undisclosed income then the department will ask for the source of that income and issues a notice to the Taxpayer.
The Income Tax Department after verification of the Income if there is any refund for the taxpayer that is when the amount of tax paid is more than the Liability of tax that is to be paid then they will issue a refund in their respective bank accounts. All the taxpayers should file their returns on time to avoid penalties from the Department.
The form that contains the details of income and the amount of tax paid by the assessee is called the Income tax Return Form. There are various types of Income tax Return form according to the types of income of the assessee such as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7.
Any Loss in the Income tax return against house property, depreciation, business loss if not set off against the income can be carried forward for subsequent years.
Benefits of Filing Income Tax Return
Loans can be easily taken on the basis of last three years Income tax Return. You can take personal, educational and vehicle loan on the basis of returns filed.
Immigration centers ask for various proof any one of them is the Income tax Return proof which is mandatory to apply for a Visa.
- Avoid Penalties
To avoid hefty penalty charges, it is better to file Income Tax Return on time.
How to file income tax return online
- To file your income tax return you should have your bank statement, last year’s income tax return, and Form 16 for salaried persons.
- Log on to www.incometaxindiaefiling.gov.in
- You have to register yourself in the income tax Portal using your Pan card number
- View from 26AS. It shows the tax deducted by any entity against your pan number. Form 16 Tax deduction will also be shown in form 26AS.
- Download and fill the ITR form according to your type of income choose the right form.
- Complete the entire form and then submit it
- Go to the Calculation of tax to check the amount of Tax
- Pay the amount of Tax if applicable by creating a challan.
Due Dates for Filing Income Tax Return
- 31st July for the firm or individual who are not liable for audit.
- 30th September for the Company liable to do audit.
Who should file income Tax Return?
- As Per the Income Tax Act the entities required to file a return:
- Every Company like Private Company, LLP, or Partnership must file Income Tax return.
- Individuals who are earning incomes from stocks, bonds, mutual funds, interest, and house property must file income tax return.
- Individuals or business entities who want to claim refunds.
- A salaried person earning incomes from salary is also required to file income tax return.
- All Individuals earning income from foreign are also required to file return.
- A Sole Proprietor is run by a single owner who is the owner of the business so therefore the owner and the business is the same as there is no separate legal entity so Single ITR is filed according to the slab rates defined by the Income Tax.
- A company is required to file income tax return according to the fixed rate defined by the income tax for the companies.
Documents Required for Income Tax Return filing
Documents required for filing ITR are:
- Bank Statement
- Proof of any investment done in a financial year.
- Form 16 TDS Certificate is required in case of salaried person.
- Proof of any Sale and Purchase of any investment or assets.
- If PAN is applied but not received then copy of PAN application.
- For businesses ITR balance sheet, profit and loss and Personal account details.
- If no books are maintained than the statement of receipts and payments are required.