An Income tax return (ITR) is a form filed with the income tax authority which reports income, expenses, and other pertinent tax information. In this blog, we will discuss about Income tax return filing. Let's start the journey.
What is Income Tax Return (ITR) filing?
ITR is a simple form in which taxpayers declare their tax payments, deductions, and taxable income. An income tax return is a proof that you have paid your tax on time. It is a way of informing the Government of India about your earning of income in a financial year. It is a yearly procedure which needs to be completed before 31st July of every year. The procedure of filing ITR is very well known as income tax filing. The total amount which needs to go to to the government as tax must be calculated before ITR filing.
Who is liable to file Income Tax Return?
List of the persons who are liable to file an income tax return is given below:
1. The Income tax department of India has made it compulsory for every individual whose annual income exceeds Rs 25000 and above is bound to file ITR
2. Where a non-resident has income sources from India, then he/she is liable to file ITR.
3. NRIs, sole proprietors, Companies, LLP, and partnership are required to file ITR
What are the advantages of Income Tax Return Filing?
There are numerous advantages of ITR filing and list of all those advantages is discussed below:
1. Easily apply for loans - If you file ITR on time, then it will be easier for you to apply for a home loan and vehicle loan.
2. Carry forward of capital losses - To carry forward capital loss, ITR filing is important.
3. Income Tax refund - At the time of filing ITR, you can claim for income tax return.
4. Visa Processing- ITR receipt is also very useful in Visa processing. If you are traveling abroad, foreign embassies and foreign authorities can ask for a copy of ITR filing of previous year especially at the time of Visa interview.
How to file Income tax return online?
For ITR filing, you have to visit the website as prescribed by the income tax department:
1. Your PAN card is treated as your user id.
2. After successful login, you have to select the option of Income Tax return Filing and need to choose the Financial year.
3. The next step is to download the proper ITR form.
4. After knowing the taxable amount, you have to pay tax and submit challans.
5. Upon payment of tax, you need to select Submit option and your ITR will be uploaded also you will get ITR V Form.
6. You can verify your return electronically by using Aadhar OTP or by sending a signed printout of the ITR V Form to the Income-tax department.
7. Once your return is successfully uploaded, an acknowledgment of ITR V will be sent on your registered email address.
Documents required for Income tax return filing.
List of the documents required for ITR filing is given below:
1. Abstracts of Bank statements
2. Proof of investment, Form 16(Salary certificate issued by the employer)
3. Form 16A/TDS certificate
4. Copy of PAN card and Aadhar card
5. Tax payment challans for self-tax assessment tax and advance tax paid by you.
Conclusion
Income Tax return allows and enables taxpayers to calculate their tax liability, schedule tax, payments or refunds for the overpayment of taxes.
Enterslice is an award-winning company in the matter of providing best and affordable services of Income Tax return filing. If you are planning to file ITR, then kindly contact Enterslice or any of its consultants.
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