An income tax return is a form where a taxpayer pronounces their income, expenses, tax deductions, and investments. As per the income tax Act, 1961, it is mandatory for a taxpayer to file an income tax return. The tax levied on income is to be paid to the central government.
An income tax is filed to report the annual income of a taxpayer. It is necessary to pay income tax even in the absence of any income in a particular financial year. A taxpayer has to file income tax to report his income, losses, income tax refunds, and deduction for a financial year. In case you have filed more tax required then the IT department will refund the additional amount into your account.
Individuals need to understand how to file income tax returns and get help from professionals to avoid unwanted disputes.
It is a form to be filed with the income tax department. Any individual or company earning an income above a certain limit is subject to income tax. Income could be from salary, interest earned on savings, sale of property, business, or income from investing in stocks. The Income tax return form is arranged properly to allow you to calculate tax liability, scheduling tax payments, and requesting refunds in case of overpayment of taxes.
The income tax department has various forms such as ITR 1, ITR 2, ITR3, ITR4, ITR5, ITR6, and ITR7 for various types of incomes and different types of entities
ITR-1 (SAHAJ) : This form is filed by an individual having income exceeding Rs 50 lakhs from salary, one house property, agriculture, and other sources.
ITR-2 : This form is filed by individuals and HUF’s having income other than profits and gains of business or profession.
ITR-3 : This form is filed by individuals and HUF having income from profits of business or job.
ITR-4 (Sugam) : This form is filed by individuals, HUF, and firms having presumptive income tax returns.
ITR-5 : This form is filed by entities other than individuals, HUF, company, and the person filing ITR-7.
ITR-6 : This form is filed by all companies except those who claim tax exemption as per section 11.
ITR-7 : This form is filed by every person including companies who are required to file returns under 139(4A), 139(4B), 139(4C), and 139(4D).
As per the Income Tax Department, one has to file income tax if coming under the following conditions
Income tax return filing is a completely online process. You can follow these steps to file your return
A taxpayer should choose the correct ITR form based on under which category they fall
Incorrect selection of assessment year may attract double taxation and unwanted penalties.
While filing ITR all details of the assessee such as name address, E-mail ID and mobile number should be correctly filled.
It is important to disclose all income sources irrespective of they are taxable or exempted
Although you don’t pay any taxes on the exempted sources of income it is important to report them.
After filing the form it is important to check the form to avoid errors.
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