Everything You Should Know About Income Tax Returns
If you are a taxpayer in India, you may have heard about Income Tax returns. If you are aware of Income Tax returns, that’s good, but if you don’t know what an income tax return is, you might be paying more in taxes than your actual taxes. So, what is an Income Tax Return?
Income Tax Return or ITR is a form in which you submit all the information about your annual income from all the sources, tax deductions that you are eligible for, and taxes that you have paid on your income. Moreover, this information is processed by the Income Tax Department of India. And, if you are eligible for a tax refund under the mentioned sections of the Income Tax Act, the IT department will credit your account with the refundable amount. However, the ITR filing is not a very simple process. While filing your ITR, you must declare your income, your tax bracket, and the sections of the IT Act that you want to take advantage of.
Is it important for you to file Income Tax Returns in India?
Yes, filing an income tax return in India is mandatory if your income falls in any of the taxable income brackets. However, if your income falls under the non-taxable income bracket, you can avoid filing ITR returns. But if you fail to file your ITR on time, it will lead to a late payment fee.
In addition, there can be other disadvantages to not filing an ITR or failing to file an ITR on time. One of them is the difficulty in getting loans. You may have to face loan application rejection due to the late submission of ITR returns. And if you are a travel enthusiast and love travelling to different countries, then it’s better to file your ITR returns on time. The reason for this is that a late ITR filing makes it difficult to obtain travel visas.
Who is required to file an ITR?
The Income Tax Act of 1961 clearly defines who is required to file an Income Tax Return. According to the IT Act, if an individual between the ages of 18 and 59 earns 2.5 lakhs or more in a single fiscal year, the individual is required to file the ITR.
But to clarify every section, like individuals, companies, NRIs, etc., you can refer to the points below.
Individual
- Below the age of 60 with an annual income of ₹2.5 lakhs or more.
- Above the age of 60 and below the age of 80 with an annual income of ₹3 lakhs.
- Above 80 with an annual income of more than ₹5 lakhs.
- Owning any form of asset in a foreign country.
- Who wants to carry forward losses from the past eight years to counter the tax eligibility?
Registered Company
- Which generates money whether the company is profitable or not.
NRI
- Earning or accumulating money above 2.5 lakhs in a financial year.
How to file an Income Tax Return by yourself?
In India, filing ITR returns is considered a very difficult task, and most people approach others to file ITR returns on their behalf. But no more dependency on others for your ITR filing because we covered all the steps for you in the simplest way possible. First, you should know about the ITR forms and the documents important for the ITR returns filing process.
There are seven types of ITR forms for various categories. Moreover, these documents are required to fill out the ITR form.
- PAN Card
- Form 16A from the employer if the company collects TDS.
- Form 16B from the buyer if you sold out a property.
- Form 16C from the tenant if the tenant collects TDS on the rent.
- Bank statement
- Salary slips
- Interest Certificates to avail of benefits
- Proof of investments for tax savings
- Form 26AS
Procedure to file Income Tax Return
After the recent amendment to the Income Tax filing policy, the ITR returns filing procedure has shifted online. It means that you can file your ITR from the official website of the Income Tax Department.
To file your ITR, follow these steps:
- First, register yourself on the official website of the Income Tax Department.
- Sign in to the portal by entering your login credentials and the CAPTCHA code.
- After that, choose the financial year and ITR form according to your category, and you will be sent to the main page to fill out the ITR form.
- Before starting to fill out the forms, read the directions carefully so that you can avoid any kind of mistake.
- Now, start filling in the details that the form asks for. Also, opt for eligible sections of the IT Act to make your taxes as low as possible and get a refund.
- Now, preview your ITR form attentively and submit it.
- After submitting the form, you will have to verify your ITR returns. You can either use your Aadhar card or the OTP that will be sent to your registered mobile number.
- You will receive an email and an SMS on your registered email and mobile number after the successful ITR returns filing.
How to check the status of my ITR online?
You can check your income tax return status on the same Income Tax Department website. There are two methods to check the status of your ITR returns.
- By using your acknowledgement number, you can use the acknowledgement number generated after the successful ITR filing. The acknowledgement number is sent to your registered email. Click on ITR status after signing in to the website. Fill in your acknowledgement number and get the status of the ITR returns.
- Using your login credentials: you can also simply sign in to the Income Tax Department website. The status will be visible on the dashboard.
The bottom line
If you are a taxpayer in India, filing an ITR is just as important as paying taxes. However, it is also good for you to file ITR returns on time. You can get a refund of the excess tax you paid for a financial year by using various sections of the IT Act. There are a lot of sections that provide benefits to the taxpayers of India. You can deduct the interest of your loans from your yearly income, you can deduct the principal amount of the insurance from your income, and many more. However, you should know the right way to use all these sections. Now that you know the procedure and benefits of filing an ITR, you can apply for a personal loan from our website by clicking here, or you can also contact us at 18002666444.