Income tax return is the amount of money which you have to pay to the government, if your earnings for the year exceed the figure; pre-decided by the government; according to income tax 1961. Income tax return filing is a plain and basic process, which you can do it online. It can be done from your office, home or wherever you are; according to your convenience. You don’t have to take a special day off to file your income tax returns. Sometimes dealing with the taxes is quite challenging and time consuming, so people prefer to call professionals to do the task.
Now a day there are several professional companies, which are just one call away to help you with your income tax return filing and make all your income tax return filing a hassle free task.
WHO HAS TO FILE THE INCOME TAX RETURNS?
Individuals, NRIs, partnership firms, LLPs, Companies and trust have to file income tax returns every year on the basis of their PAN (Permanent account number), which is essential to file the income tax return.
Ø If the income of individuals and NRIs exceed 2.4lakhs per annum, they have to file the income tax returns.
Ø No matter, what is the income of proprietorship and partnership firms or regardless of their income and loss. They are supposed to file their income tax return each year.
Ø All companies and LLPs mandatorily file their income tax return , irrespective of their turnover and profit
DATES NOT BE MISSED
Ø 31st July is the due date for filing the income tax returns every year for individual taxpayers.
Ø 30th September in case your income tax filing requires auditing in accordance with the Section 44AD of Income Tax Act.
PENALTIES FOR LATE INCOME TAX RETURN FILING
Every taxpayer is supposed file their income tax returns before the due date, if they fail to do so in any case; then they are charged with the late payment fees under the penalty provision.
LATE CHARGES OF INCOME TAX RETURN FILING
Ø If you file income tax returns between 1st of august and 31st of December-Rs.5000.
Ø If you file income tax returns after 31st of December-Rs.10,000.
Ø If the taxable income is less than 5lakhs-Rs.1000.
FORMS TO BE FILLED FOR INCOME TAX RETURN FILING
Filing income return requires few forms to be filled, ranging from Income Tax Return1 (ITR1) to Income Tax Return7 (ITR7). You need fill the every minute detail of your possessions and earnings, which may take little longer time than expected and some additional disclosures.
Following are the forms to be filled for income tax return filing.
S.NO
FORMS FOR FILING THE INCOME RETURN
DETAILS
1.
ITR1
Person earning a salary, one house property owners, income from interest and with the total income upto Rs.50lakhs.
2.
ITR2
For individuals and HUFs not having income from profits and gains of business and professionals.
3.
ITR3
Income from profits and gains of business or profession from individuals and HUFs
4.
ITR4
For presumptive income from business and profession
5.
ITR5
For persons other than:-
· Individual
· HUF
· Company
· Person filing form ITR7
6.
ITR6
Companies which are not claiming tax exemption under section 11
7.
ITR7
Individuals and companies who are required to produce income tax return under section 139(4E), section 139(4F) and section 139(4A) of Income Tax Act 1961.
ADVANTAGES OF INCOME TAX RETURN FILING
Many of us overlook the mandate of Income Tax Return filing, without knowing the benefits of maintaining it. Here are the few basic perks and benefits to the income tax payers.
Ø APPLYING FOR LOANS- Whenever you go to bank and ask for a loan, most of the banks ask for income tax returns. If your income tax filing is correct and up to date, your loan is more likely to get approved.
Ø CONSOLIDATION OF FINANCES-Income Tax Return receipts is an official proof of your income from all the sources and can be used for many purposes.
Ø INCOME TAX REFUND-While filing your income tax returns, you can also claim for the refund.
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