Income Tax Return Filing

 



Income tax Return :


All Indian citizens are required to pay income tax to the Government of India in accordance with the income tax laws and regulations. Income Tax laws apply to all individuals, associations, firms, LLPs, local authorities, and Hindu undivided families in each financial year. It is therefore important to file your income tax return (ITR) annually. Income tax returns may be filed online or offline based on your convenience.


How does an income tax return ?


Individuals are required to file Income Tax Returns (ITRs) with the Income Tax Department of India to report their income and taxes for the year. ITRs should be filed by the end of a particular financial year between April 1st and March 31st.


There are many ways to earn income, such as salary, profits, sale of property or house, dividends, capital gains, interest, and dividends. Tax excesses are refunded to you by the Income Tax Department if you paid them during the year.



Does ITR filing have to be done ?


In order to avoid being taxed by the Government, you are required to file your tax return each year if your income exceeds the exemption limit. The late filing of your ITR can lead to penalties and will also prevent you from getting future loans or visas.


Online Income Tax Returns - Reasons To File


What is the ITR process?


Let's take a look at who is required by law to file income tax returns every financial year now that we know what an income tax return is.


1. Anyone who earns at least Rs 2.5 lakh a year and is under 59 years old. Seniors over 60-79 are eligible for a Rs 3 lakh exemption, while those over 80 can claim a Rs 5 lakh exemption. Section 10 of the Income Tax Act specifies that income should be calculated without deductions


2. Despite not making any profit for the past year, a company may still be registered with yearly income


3. Refunds are available for individuals who have deposited surplus income tax or taxes already deducted.


4. A person who holds assets outside of their country or has any other financial interests outside of that country.


5. Treaty benefits are available to companies based outside of India on intra-country transactions.


6. Those NRIs who earn more than the Rs 2.5 lakh exemption limit every year should be exempt from paying tax.


Do you need any documents to file an ITR?


To ease the process of filing a tax return, there are a few other documents that you will need to put together when you start to file your tax return. Apart from your salary slip, your bank savings account passbook, your Aadhar card, and your PAN card, there are a few other documents you will need:


1. Form 16: You will receive a Form 16 from your employer, which will provide all the relevant details regarding how much salary the company has paid you and the total amount of tax deducted at source.


2. Form 16A: This form consists of details of the TDS deducted by the bank on interest received from deposits, whether they are fixed or recurring.


3. Form 16B: You have to fill out this form if you want to sell a property and have TDS applied to the amount received by the buyer from you. Detailed information concerning the TDS will be given below.


4. Form 16C: Your tenant pays you rent and you record the TDS.


5. Form 26AS: Compilation of tax statements against PAN. A payment made to you by an employer, bank or another organization includes TDS. The list includes tax deductions from Section 80C to 80U, advanced taxes or self-assessment taxes paid, and life insurance policies or term plans.


What are the steps to file an ITR online?


If you have an internet connection, you are now able to submit your tax return from the convenience of your own home. The Income Tax Department has made this possible by allowing taxpayers to e-file their tax returns, which uses pre-approved software to prepare their tax returns. In recent years, there has been an increase in the number of taxpayers filing their returns online due to its many advantages such as:


1. Refunds: In case you have had tax deducted at source on a payment that was made to you and you would like to claim a refund of that amount, you will have to furnish your ITR for the financial year for which the refund is being claimed.


2. Proof of Eligibility: Your yearly income determines your loan eligibility. You can lend credibility to your application by providing a detailed ITR form that details your earnings in the past. Tax returns are the most common proof of income for visa applications.


3. Income Proof: If you buy a term plan from your insurer, he may ask for a copy of your ITR as part of the decision making process for the amount that can be paid to your nominees if you die or become disabled. ITRs are verified proofs of income that are considered legally valid.

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