What is ITR?
The Income Tax Return (ITR) is a necessary form that individuals must complete to disclose their net tax liability, claim tax deductions, and report their gross taxable income. It is mandatory for individuals who earn a specific income threshold to file their IT Returns.
Hindu Undivided Families (HUFs), businesses, and self-employed or salaried people are all required to submit ITRs with the Indian Income Tax Department.
ITR Filing
The procedure of submitting an ITR requires a taxpayer to provide a return detailing all of the income they received within a certain fiscal year. The official portal of the Income Tax Department is where people may finish completing their taxes. Seven different forms have been notified: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.
ITR Form Types
The form that must be provided will vary according on the taxpayer’s income category. The following lists the many formats that can be used for ITRs:
ITR-1 or Sahaj
Individuals who earn an annual income of less than Rs.50 lakh through pension or salary, and possess only one house property, must ensure they use the ITR-1 or Sahaj form.
ITR-2
Non-Resident Indians (NRIs), directors of corporations, shareholders of private firms, and anyone who receive income from overseas sources, two or more residential properties, capital gains, or any combination of these must file the ITR-2 form. The individual's income must, however, exceed Rs. 50 lakhs.
ITR-3
In India, professionals or those who manage a sole proprietorship must utilise the ITR-3 form.
ITR-4 or Sugam
ITR-4 form must be used by those who are subject to the presumptive taxation plan. Those who wish to enroll in the plan must make less than Rs. 2 crores from their business or less than Rs. 50 lakhs from their profession.
ITR-5
ITR-5 Form must be utilised in order for partnership businesses, associations and bodies of persons, and Limited Liability Partnerships (LLPs) to record their income and tax computation.
ITR-6
ITR-6 Indian-registered businesses are required to utilise the ITR-6 form.
ITR-7
The ITR-7 form must be used if organisations such as universities or colleges, scientific research organisations, political parties, or charitable or religious trusts are requesting an exemption.
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The Reasons for Filing an ITR
- In India, if a person meets any of the following criteria, they must file income tax returns:
- Those who are included in the appropriate tax slabs.
- In the case of a company or firm, regardless of the earnings or losses realized throughout a fiscal year.
- If a claim for a tax refund is necessary.
- If a loss needs to be carried over under an income category.
- In case of someone needing a loan or a visa.
- Being an Indian resident entitles one a financial interest in any firm situated outside of India as well as the ability to sign documents for accounts opened abroad.
- Any income received by an NRI from sources within India, whether or not it is derived from there, is subject to Indian taxation.
- If a person receives income from assets held in trust for religious or charitable purposes, or from a political party, research group, news organisation, hospital, trade union, not-for-profit university, educational institution, infrastructure debt fund, or any other authority, body, or trust.
Following the adoption of electronic filing of income tax returns, the following scenarios will necessitate electronic income tax filing:
- If a reimbursement is necessary
- If the gross yearly total revenue is more than Rs. 5 lakhs.
- If a refund of income taxes is necessary.
- ITRs 3, 4, 5, 6, and 7 must be electronically filed.
Documents Needed to Submit an ITR
The list of documents required will vary according on the tax bracket the individual is in. The following is a common list of papers required in order to file an ITR:
- Pan card
- Form 26AS
- Form 16A, 16B, 16C
- Pay slips for salaries
- Account statements
- Interest certificates
- TDS certificate
- Proof of tax saving investments
How Would You File an ITR?
You have the option of submitting your Income Tax Returns (ITR) online or offline. The following are the steps involved:
Online procedure
The online site for electronically filing income tax returns has been upgraded by the Income Tax Department (ITD) and may be accessed by following the steps listed below:
- Go to the income tax department’s official e-filing site at the e-Filing Home Page.
- Use the ‘Register’ button to register if you are a new user; otherwise, Select the ‘Login’ option.
- Find the “e-file” tab and pick the option to “File Income Tax Return.”
- Choose the income bracket. (person, HUF, Hindu Undivided Family, etc.)
- Choose the appropriate form.
- Put the bank information in.
- Examine the ITR beforehand. A relevant modification can be made.
- The next step is to do the e-verification before filing the IT.
Offline Process
The following is the process that has to be performed in order to file the ITR offline:
- Proceed to the Income Tax Department’s e-filing facility.
- Downloading the Utility programme is required.
- Select the ITR form.
- The form has to be completed.
- Save the form and examine it as an XML before saving it.
- Determine how much tax require to be paid.
- Open the UTL software first. Input of the PAN and password is required.
- Then choose “Income Tax Return.”
- Choose the assessment year and form.
- Pick the “Original/Revised Return” filing category.
- After completing the check, upload the XML.
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FAQ’s
It is possible to submit your income tax return beyond the deadline. If the ITR is filed beyond the deadline, there will be a penalty assessed.
On the Income Tax Department of India’s official website, you may check the status of your income tax return. With the use of your password and Permanent Account Number, you may verify the status.
The Income Tax (IT) Department may send you a warning if you fail to file your income tax return during an assessment year.
Yes, you may file the ITR by going to the Income Tax Department’s official website.
Yes, Income Tax Returns (ITR) can be submitted without Form 16.
Yes, there are fines if the ITR is not submitted.
Salaried workers who are subject to a tax bracket are required to complete an ITR.
No, filing your ITR is required. With the aid of the ITR, the government obtains a comprehensive record of the distribution of your income.