Income Tax is a system of taxes for which every citizen of India owes tax to the government of India. Individuals, associations, LLPs, local authorities, or Hindu undivided families are all taxed on their income every year. It is required that you file your annual Income Tax Return (ITR) in order to avoid taxes. If you are more convenient, you can file your income tax return online or offline.
Income Tax Returns (ITRs) are forms submitted to the Income Tax Department of India to notify the department of an individual’s income and taxes due during the fiscal year. For an ITR to be filed, the information must be applicable to the financial year between April 1st and March 31st of the next year.
There are many ways you can earn income, such as salary, profit from your business, sale of a house or property, dividends, and interest. Your excess tax payments are refunded to you by the Income-tax Department after a year.
Do I Have to File an ITR?
According to Income Tax rules, people who earn more than the limit which is exempt from taxation are required to file their tax returns according to the tax slabs for that year. If the ITR is not filed by the due date, penalties may apply, which will prevent you from getting a loan or visa in the future.
Who is required to file an ITR?
Let’s take a look at who is legally required to file income tax returns, now that we understand what an income tax return is.
- A person under the age of 59 with an annual income over Rs 2.5 lakhs is eligible. The exemption limit for elderly people between 60 and 79 years of age is Rs 3 lakhs and for super seniors (80 years or older) it is Rs 5 lakhs. As specified in Section 10 of the Income Tax Act, the calculation of income may not take deductions into account
- Registered companies, even if they haven’t turned a profit during the year, have an annual income
- It involves the individual seeking a refund on excess income tax or income tax deducted from their annual income.
- A person with financial interests outside their country.
- Indian companies with treaty benefits on domestic transactions.
- Earners who earn more than Rs 2.5 lakh a year are exempt from taxation.
Do You Need Any Documents to File an ITR?
You’ll also need the following documents to complete your income tax return, in addition to salary slips, bank savings account passbooks, Aadhar cards, and PAN cards:
- An employer provides you with this form with information about the salary you receive and the taxes withheld at source (TDS).
- In this form, details on the TDS deducted on interests received from bank deposits, such as fixed and recurring bank deposits, are provided.
- If you sell a property, TDS is applied to the amount the buyer receives from you, and the details are available on this form.
- The TDS for the rent paid to you by your tenant is recorded on Form 16C.
- Form 26AS represents your comprehensive statement of taxes against the PAN number. TDS by your employer, bank, or other organization that has paid you are included in this category. A list of income taxes advanced or self-assessed as well as proof of savings investments such as deductions prescribed in Section 80C to 80U, including life insurance policy and term life plans are included as well.
What Is the Process for Filing an ITR Online?
Your tax return can now be submitted from home if you have an internet connection. Using pre-approved tax preparation software, the Income Tax Department has enabled the e-filing of tax returns. Increasingly, taxpayers file their returns online for several reasons, including:
- Tax deducted at source on payments made to you and you wish to claim a refund of the amount, you must furnish your ITR for the financial year in order to claim the refund.
- In order to determine your eligibility for a loan, you must provide verification of your yearly income. By submitting an ITR form, you can provide details on your previous earnings to the borrower, which lends credibility to your application. As such, visa applications also require income proofs, of which tax returns are the most commonly accepted.
- A term plan’s insurer might ask for your ITR when determining the amount to be paid to your nominees in case of your death or disability. For this purpose, the ITR is deemed to be an officially verifiable proof of income.
What Is the Best Way to Check Your ITR Status Online?
Different categories of individuals and sources of income use different ITR forms. Tax forms vary depending on the income category generated by each taxpayer:
The ITR-1 is applicable only to resident individuals (not to NRIs, HUFs or any other entity) with income up to Rs 50 lakhs, and who have income under the following categories:
a)Salary/pension income
- b) Income from a single-family home
(c) Other income
- ii) ITR-2: The ITR-2 form is applicable to individuals / HUFs who are not eligible to file ITR-1 and who have income from sources other than business and profession.
iii) ITR – 3: For individuals or HUFs with profits or gains from business or profession, this form is applicable.
- iv) ITR-4: This form is needed by all individuals and HUFs (other than LLPs) earning income up to Rs 50 lakh & earning income under the following heads:
Income from business or profession computed on a presumptive basis under section 44AD, 44AE, or 44ADA
(b) Salary and pension income
- c) Income from a single-family residence
(d) Other income sources
- v) ITR-5: The ITR-5 form is used by persons other than individuals, HUFs, companies, and those filing Form 7. The form should cover partnership firms, LLPs, AOPs, BOIs, Artificial Judiciary Persons, Cooperative Societies, and Local Authorities. Additionally, investment funds, business trusts, and estates of the deceased and the insolvent use the form.
- vi) ITR-6: This form is for any company which does not claim an exemption under section 11. For charitable trusts / religious trusts, ITR 7 applies in Section 11.
The ITR 7 is used by persons and companies required to submit a return in accordance with sections 139(4A), 139(4B), 139(4C) or 139(4D), or 139(4E) or 139(4F). Religious, charitable, and political trusts, as well as scientific research associations and universities, are examples of these entities.
On the e-filing website of the Government of India, you can easily check the status of your tax return after you have submitted it. If you haven’t made an account on the website, here are a few simple steps to check your ITR status:
- To check your ITR status without using your login details, click the link displayed on the left side of the website. You will be redirected to a page where you need to fill out your PAN, ITR acknowledgment number, and captcha code. Once you have entered the information, your tax filing status appears.
- By using your login details, you can access the website. Click the ‘view returns or forms’ link. The dropdown menu allows you to select the assessment year and income tax returns. In this case, you can check whether your ITR has been verified or processed.
What Is the Process for Downloading the ITR v Form Online?
After you have duly submitted your tax return, the Income Tax Department generates a validation form that allows you to authenticate your online e-filing. This option is only available to those who file their returns without a digital signature. Using the Internet, you can download ITR V:
- https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html is the website of the Income Tax Department of India.
- Click on ‘View Returns/ Forms’ to view your e-filed return
- Select income tax returns from the list
- The following will display all your returns for all years
- You can download ITR-V by clicking on the acknowledgment number and selecting ‘ITR-V Acknowledgment’
- You can download ITR-V with your password, enter your PAN number in lower case and your date of birth to open the document
Take a printout and sign the document. Once you have e-filed your tax return, you should send it by post to CPC Bangalore within 120 days. Another alternative is to generate Aadhar OTP through net banking, ATM, etc., and then complete the e-verification process for your ITR. Keep your ITRs up-to-date and avoid missing the deadlines to avoid penalties. A late ITR must be filed by 31st March of the following year if you miss the due date. The ITR must be filed before the end of the assessment year or by the end of the assessment year.
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