Income Tax Return:
The most authentic proof of your income earned is your income tax return. Seven types of Income Tax Returns (ITR) forms have been granted by the Income Tax Department based on the type of income and status of taxpayers. Understanding tax compliance and filing tax returns is mandatory for every service-oriented individual and organization. It is therefore a form where taxpayers declare their taxable income, tax payment as well as a deduction. The process through which the Income Tax is filed is referred to as Income Tax Filing. During the filing procedure, the amount you owe to the administration also gets calculated.
In case you have underpaid taxes for the year, you are requested to pay the remaining amount and then continue filing your Income Tax Returns. If paying more tax for the particular financial year, then the IT Department refunds the extra amount to your account. When talking about the different types of ITR, some forms are longer than the other and may need additional disclosures such as balance sheets and profit and loss statement information. As the government has made filing tax returns easier using Saral/Sahaj forms, the task remains a cumbersome procedure for many individuals.
The need for filing Income Tax Returns:
Filing an Income Tax Return is mandatory if your total Indian Income exceeds Rs. 2.5 lakh. The matter of being a resident of India or an NRI is not under consideration. The Income Tax Return document is a very crucial document that should be produced at the tenure of assisting a home loan. It gives a review of your financial discipline as well as affluence and shows your position to repay a loan. You should know to file or e-file your Income Tax Return, even if you do not meet the border.
If you plan out to go out of the country for higher studies or a job then you will need at least 3 years filed Income Tax Returns as proof of income. Your ITR documents are generally asked by people processing your visa application to evaluate your financial health. This shows whether you can support yourself on your own in some other country.
Who should file Income Tax Returns (ITR):
- Individuals less than 60 years with an annual income of more than Rs. 2.5 lakh.
- For senior citizens the cut-off is Rs. 3 lakh and for individuals who are more than 80 years, the cut-off is Rs. 5 lakh.
- People having a Salary income can file with or without Form-16.
- If a person has switched jobs during the financial year can file (Multiple Form-16).
- Individuals having Income from Capital Gains such as mutual funds and stocks, House property, FD, Interest, etc.
- An individual having a foreign Income (Onsite deputation), Foreign Assets, NRI.
Documents required for e-filing your Income Tax Returns:
- It is mandatory to provide all the bank accounts details held in the given financial year.
- Details about all the deduction claimed under Section 80.
- Your PAN card, Aadhaar card, and current address.
- Income proofs such as current salary details, income from investments, Form16, etc.
- Tax payment details like TDS and advance tax payments.
How can a person file an Income Tax return in India?
It can be filed online either on the income tax department’s website or with us at business rights. Our company provides a serene way of filing Income tax returns or e-filing as our experts help you in the filing. Remember that the due date to e-file your income tax return has been extended to November 30, 2020, from the usual deadline of July 31, 2020, because of the COVID-19 pandemic.
How to File an Income Tax Return:
The process for filing Income Tax Return comprises of ten different steps.
- The first and foremost step is to know whether you have to file an Income Tax Return or not. You can check that above.
- Accumulate all the necessary documents required for the filing procedure. Check the documents needed mentioned above. Note that the return is an annexure-less form which means that you are not required to send supporting documents with your tax return. But make sure you secure and keep them carefully.
- Sign up or log in to your email account.
- Your Form16 has to be uploaded on the site and your income, deduction, TDS will be automatically read and then pre-fill your Income Tax Return. In case you don’t have a Form16, you can prepare a tax return with a payslip.
- Claim HRA, LIC premium, and any other Section 80C expense or deduction you have missed and then check if you are required to pay tax.
- Pay tax is due. In case you need to pay additional tax then you must pay the tax first and then e-file the tax returns. If you fail to furnish the income tax returns before the deadline then a penalty of 5000 rupees is imposed, if the return is furnished on or before December 31 of the assessment year, The amount increases to Rs, 10000 if tax is paid after December 31 of the assessment year.
- Re-check the details entered and e-file your income tax return.
- As soon as you file your tax return online, a 15 digit acknowledgment number will be displayed on your screen.
- E-verify your Income Tax Return or send ITR-V.
- Track refund in case you are getting one.
Benefits of filing Income Tax Returns:
- A maximum forfeiture of Rs. 10000 should be avoided if your total income surpasses Rs. 5 lakh.
- Processing your visa is quick and easy. Many embassies and consulates ask for the IT returns for the last 3 years.
- Losses against house property and depreciation can be carried forward.
- Circumvent Tax notices.
- You are permitted to claim for a tax refund as soon as you file.
- The Tax return documents are proof for the financial investments and are useful when applying for a visa or loan.
Contact us for help with easy way of e-filing income tax return,