An overview of the Income Tax Return (ITR). Why is it necessary to file income tax returns in India?
The primary incentive is that in India, you must file an ITR with the government if your income surpasses a certain level. Additionally, the usage of particular financial services and products is facilitated by the voluntary provision of proof of tax returns. Typically, you need to submit your past three years’ tax returns in order to be eligible for loans and other credit options. Additionally, since losses from the previous year cannot be demonstrated for a future exemption, having them on file through income tax return filing is advantageous. By doing this, you can reduce your tax due in the upcoming years.
Now that you are aware of the benefits and justification for filing taxes, take a look at the procedure for getting your returns ready.
Is it necessary to file ITRs?
If your income is more than the amount that exempts you from government taxation, you must file your tax return each year in line with the appropriate tax slabs, according to income tax legislation. You might face penalties and have a more difficult time getting a loan or visa in the future if your ITR is submitted after the deadline.
What conditions need to be fulfilled in order to submit an ITR?
As per the Income Tax Act of 1961,
- The filing of an Income Tax Return (ITR) is mandatory for individuals under the age of sixty who earn Rs. 2.5 lakh or more annually. To see who else meets the requirements, keep reading.
- Anyone between the ages of 60 and 80 who earns a minimum of Rs. 3 lakh each year
- Anybody over 80 who earns more than Rs. 5 lakh in total income per year
- Any company or organization operating in India, regardless of profitability
- Any Indian citizen who owns real estate or has ties to a foreign entity financially
- Anyone who desires to continue recovering from their injuries
Which documents have to be filed in order to file taxes?
Along with your pay stubs, bank savings account passbook, Aadhar card, and PAN card, you will also require the following documents to expedite the process of filing your income tax return:
- Form 16: This document, which your employer supplies to you, details the salary you were paid as well as the amount of tax withheld at the source (TDS).
- Form 16A: Your employer will provide you with this form, which shows the amount of tax withheld at the source (TDS) and the pay you received.
- Form 16B: TDS is payable on the amount that the buyer gets from you upon the sale of a property; this form contains the details.
- Form 16C: The TDS details of the rent that your tenant has paid you are included on this form.
- Form 26AS: This is the document that shows you your complete tax statement in comparison to your PAN. It includes TDS from your job, bank, or any other business that has paid you. Included are evidence of tax savings investments, such as deductions permitted by Sections 80C to 80U and including a term plan or life insurance policy, as well as proof of advance taxes or self-assessment taxes paid.
What kinds of ITR forms are there?
There are seven distinct forms you should be aware of if you want to file your income taxes online. These are mentioned as follows:
• ITR-1: During a fiscal year, individuals having income up to Rs. 50 lakh from employment, pensions, investments, a single residential property, or any other source may utilize this form.
• ITR-2: Anyone or any Hindu Undivided Family (HUF) whose income for a certain fiscal year does not come from earnings from a business or occupation may utilize this form.
• ITR-3: This form may be used by individuals or HUFs whose income for a given fiscal year comes from the earnings of a business or profession.
• ITR-4: Those who fulfill the presumptive taxation plan’s standards and earn less than Rs. 50 lakh from a profession or Rs. 2 crore from a company may utilize this form.
• ITR-5: Associations, partnerships, and Limited Liability Partnerships must use this form when reporting revenue for a fiscal year.
• ITR-6: Any firm registered in India that has to declare taxes for a fiscal year needs to utilize this form.
• ITR-7: Organizations like charity trusts, political parties, research centers, and educational institutions that are filing tax returns for a fiscal year must use this form.
How may the income tax return form be downloaded?
As previously noted, in order to proceed with the electronic filing of income tax returns, you need to download the appropriate form. Here’s how you go about choosing and downloading.
- Go to the web portal of the Income Tax Department.
- On the home page, search for the “Forms/Downloads” link.
- Nonetheless, go over it and choose “Income Tax Returns.”
- After reviewing it, select “Income Tax Returns.” Select the one that most closely fits your financial situation.
- Fill out the required information after downloading it.
What steps are involved in submitting income tax returns?
You must file your ITR online using the official Indian income tax website in compliance with the most current change to the income tax filing regulations. However, you must register on this page in order to begin.
After registering for the e-filing service, do the following:
• Enter your user ID and the CAPTCHA to log in.
• Choose the proper ITR form and assessment year.
• A page to fill out the form will be displayed to you. To prevent errors, thoroughly read the instructions.
• Verify the details after inputting the pertinent data. Then, to continue, click the “Preview and Submit” option.
• Once the return is submitted, you will need to confirm it using an electronic verification number or your Aadhaar card.
• You will get an email at your registered email address and a text message on your registered mobile number upon successful verification and processing.
In what way can you view your ITR status report online?
You are unable to view the status of your ITR until after your income tax returns have been correctly filed. You can choose one of these two methods.
• After logging into the portal and providing your acknowledgement number, you may select the “ITR Status” button.
• By entering your login information, you can also see the status on your dashboard.
Using one of these really easy methods, you might have your ITR status in a matter of minutes.
What happens if income tax returns are not filed?
The amount of the penalty you will pay for not paying your taxes depends on your applicable income tax rate and the amount of time that has gone since the deadline. Depending on these factors, you might be penalized anywhere from Rs. 1,000 to Rs. 10,000 if your income is less than Rs. 5 lakh. If your income is more than Rs. 5 lakh, you may be subject to fines of between Rs. 5,000 and Rs. 10,000.
The most important thing to keep in mind is that filing taxes is a requirement of being a law-abiding citizen. To speed up the process, try to file your tax returns well in advance of the income tax return date. Remember the above recommendations and take notice of the provisions pertaining to your financial profile before filing your ITR.
How Can I Download the ITR V Form Online?
The Income Tax Department will give you a verification document once your tax return has been correctly submitted, which you may use to verify that your online tax filing was done electronically. This is only available to taxpayers who file their returns without using a digital signature. Now let us look at how to obtain the ITR V form online:
- To examine the return you e-filed, click “examine Returns/ Forms.”
- Next, from the list of alternatives, choose income tax returns.
- Then select income tax returns from the list of options.
- To download ITR V, click on the acknowledgement number and choose “ITR-V Acknowledgement.”
- To access the document, provide your date of birth and PAN number in lowercase when prompted for a password.
- Take a print out of the document and sign it. After filing your taxes electronically, you have 120 days to mail it to CPC Bangalore. The alternative is to complete the e-verification of your ITR and generate an Aadhar OTP using ATMs, net-banking, etc. To be safe, file your ITR on time and make sure you do not miss any deadlines. You have until March 31st of the following year to file your ITR if you inadvertently miss the deadline. In other words, you have the option to file your ITR before the conclusion of the assessment year or before it ends.
