Income Tax Return in India

Table of Contents

Introduction

According to the Income-tax rules and regulations, every person has to pay tax on their income to the government of India. Individual, association or a firm, LLP, Local authority, or a Hindu undivided Family is to pay tax for each financial year as per the Income Tax Law. It is essential to file the Income Tax return (ITR) on annual basis. You have to opportunity to choose to file the Income Tax Return online or offline according to your convenience.

Income Tax Return

Income Tax Return is a form in which an individual submits to file the information about his own income and pay the taxes during the particular financial year. The income included a salary of the person, profit in business, sale of house or property, dividend, and any interest received among others. If you paid excess taxes then during the year Income Tax Department is refund back money to you. An individual or any business holder or any other person to file the tax return before a specified date of the financial year. If a taxpayer fails to submit the return after the deadline date, then he/ she has to be liable to pay the penalty which is imposed by the Income Tax Department.

To file the Income Tax Return is compulsory or not

According to the tax laws in India, if your income tax is more than the basic exemption limit then it is compulsory to file the income tax return. The rate of the income tax is pre-decided by the Taxpayer. If you delay filing the ITR then pay the late filing fee and also obstruct your chance of getting a Loan and a visa for travel purposes.

Who should file Income Tax Returns?

ITR is filed by the individual or business that falls within the category which is decided by the Income Tax Act. There are some entities or businesses that are required to compulsory to file their ITR in India given below:

All individuals up to the age of 59 whose total income for a financial year exceeds Rs.2.5 lakh, Senior citizens aged 60-79 whose increases the limit is Rs.3 lakh, and for citizens of a super senior whose aged 80 and above the limit is Rs.5 lakhs.
All registered companies file the income tax return whether they have made any profit or not throughout the year.
Those people can claim the refund from the income tax department that pays the excess tax at the time to file the tax return.
All foreign companies made in India that enjoy the treaty benefits on transactions.
NRIs who earn more than Rs.2.5Lakh in India in a financial year.

Documents Required

There are many documents that are required for filing the ITR. But some are given below:

Pan card
Form 26AS
Form 16A, 16B, 16C
Salary Pay slips+
Bank statements
Interest certificates
TDS certificate
Proof of tax-saving investments

Advantages of filing the Income Tax Return

There are many advantages to filing the Income Tax Return but some are given mentioned below:

Income and Address Proof: Income Tax Return can be used as an income and address proof.
Claim Tax Refund: If you pay the extra amount at the time of filing the income tax return then he may claim a tax refund from Income Tax Department.
Easy Loan Approval: If you pay an income tax return the bank can easily approve the Loan. At the time to give the loan to individuals, all banks can ask for a copy of the income tax return.
Quick Visa processing: At the time of visa all embassy and consultants can also ask for a copy of the income tax return slip for past couple of years.
Carry forward your Losses: If you File a return within the due date you will carry forward all the losses to the subsequent year, which can be used to set off against the income of the subsequent year.
Avoid Penalty: If you require for filing the income tax return but did not file any return then Income Tax Department imposed a penalty up to Rs.5, 000.

Conclusion

It concluded that all individual, association a firm, LLP, Local authority, or Hindu undivided Family is to pay tax for each financial year as per the Income Tax Law. It is essential to file the Income Tax return (ITR) on annual basis. You have to opportunity to choose to file the Income Tax Return online or offline according to your convenience. If you paid excess taxes during the year Income Tax Department is refund back money to you. An individual or any business holder or any other person to file the tax return before a specified date of the financial year. If a taxpayer fails to submit the return after the deadline date then he/ she has to be liable to pay the penalty which is imposed by the Income Tax Department.

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