1. What is filing Income Tax Return?
The ITR is a statement of the total amount of revenue each person receives from the various sources, his or her tax liabilities, taxes paid, and refunds (if any) that the government must pay. Each person is legally required to file an ITR if the total amount of revenue without allowing deductions below section 80C to 80U exceeds the basic release limit. This action provides proof of income as legal and disclosed.
2. Who needs to file Income Tax Return?
- Persons with total income (prior to approving any deductions under section 80C to 80U) in excess of Rs. 2,50,000 per financial year, for adults living there (between 60 and 80 years) exceeding Rs. 3,00,000 and Rs. 5,00,000 to senior residents (over 80 years).
- Each person who wants to apply for a tax refund for the financial year.
- Individuals with long-term tax-exempt income from the sale of equity shares in a company or mutual funds unit focused on equity or business unit unit in excess of Rs.2,50,000.
- Proceeds from the sale of property held under the trust of a charitable organization, a religious trust, a political party, an educational institution, or any other authority, body, or trust.
Company or Firm
- It is mandatory to file the ITR of a company or firm, whether you have a profit or a loss.
- It is obligatory to file an ITR for a foreign company that is taking advantage of the contract in any transaction made in India.
- NRI (Non-Residential India) with total revenue earned or collected in India exceeds Rs. 2,50,000 per financial year.
3. Benefits of filing Income Tax Return
Even if you do not enter any of the above methods but are looking forward to obtaining any type of loan, you should submit an Income Tax Return. The inclusion of an ITR is considered a valid proof of income and is often questioned when choosing any type of loan.
- It saves you from having to deal with different penalties automatically.
- It helps you to provide real evidence and minimize problems while applying for a loan or making any transaction.
- Helps to seek redress against past losses, retrieval is helpful if someone needs to file a renewed return. One cannot file an updated return unless you have entered the actual return.
It is better to apply the ITR not only to save yourself from punishment but also to work as an honest citizen. Even if you do not feel compelled to do so, it is still wise to do so voluntarily. So do not sit back and relax as you should be aware that completing the ITR comes with a number of benefits.
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Frequently Asked Questions
What is Income Tax Return?
It is a prescribed form in which a person can provide details of his or her income earned through various sources of income and taxes paid in the relevant financial year to the Department of Revenue.
Do I have to file my income tax return?
Yes, you are required to complete your income tax return if your income exceeds Rs. 2,50,000 in the Financial Year i.e. the basic release rate without giving effect to any type of deduction/investment.
My employer deducts and deposits TDS on my behalf. Do I need to still file my Income Tax Return?
Yes, even if your employer deducts and submits your TDS regularly and on time, you still need to complete your tax return if your income is more than Rs. 2,50,000. This helps in determining any required fees or eligibility for a refund.
Is E-Filing mandatory?
E-Filing is mandatory in certain circumstances. For example, if your total income is more than Rs. 5,00,000 p.a. or if you want to apply for a refund you will need to submit your Income Tax Return e-file. It is a much simpler process than filling out a paper return and your returns are processed as soon as your return is E-Filed.
How can I e-file my return?
You can personally file your refund with us for free through our website. It is a simple, secure, and fully automated forum to apply for your Income Tax Return. If you need an expert to help you with this process, you can purchase ‘CA Assistance Programs’ from Rs. 299 only.