Tax Compliance or timely filing of Income Tax Return proves your financial wisdom and ethics. An Income Tax Return is a predefined format that is used to file income details and tax thereon with the Tax Department. Any person whose income during the year exceeds the threshold limit whether, through the property, rental, salary, dividends, interest, capital gains from any profession or business or through any other sources has to file Income Tax Returns. Filing of Income Tax Returns is not a burden anymore. Everyone has to file Income Tax Returns digitally which is the online filing of Income Tax Returns. Only senior citizens aged 80 years or above are allowed to file Income Tax Returns or ITR in paper format.
Income Tax Return- What is it?
An Income Tax Return or ITR is a form used to file information about income and Tax to the Income Tax Department. Every person must file Income Tax Return as prescribed under Section 139 of the Income Tax Act. The income can be in the form of business profits, salary, capital gains, interests, the income of house property or any other sources of income. Tax liability is calculated on the basis of tax payer’s income. In most cases, tax returns are filed annually. In case an individual pays excess tax during a year, they can apply for Income Tax Refund from the Income Tax Department.
List of Documents Needed to file Income Tax Return! – According to sources of Income
Be handy with all the documents mentioned below for easy filing of Income Tax Return or ITR.
The basic documents are:
List of Documents according to sources of Income:
|Types of Income||Documents Needed|
|2.||Salary (Deductions not declared by the Employer)||
|3.||Business or Profession||
|6.||Any other Sources of Income||TDS Certificates relating to interest, dividend, income from sources which is not included above.|
|7.||Agricultural Income||Bank Statement mentioning agricultural income|
|8.||Incomes to be clubbed||Details of Income of any dependents or spouse which the taxpayer wishes to declare as his income.|
Different forms for Income Tax returns
Income tax Return forms depend on the type of income of the taxpayer. The various forms are available on the official website of the Income Tax Department. The forms can be downloaded from the official website.
https://www.incometaxindiaefiling.gov.in/home and Download form from the List of Income Tax Returns and forms available.
|S. No||Form No||Applicability|
|3.||ITR-3||Professionals or Proprietors of business.|
Read our article:How to e-Verify your (ITR) Income Tax Return Filing
What are the Prerequisites to file ITR Smoothly?
Tax Credit prescribed under Form 26AS
Check Form 26AS before filing Income Tax Returns online. It specifies the employees deducted the tax amount from the salary. An individual must compare Form 16 with 26AS.To save oneself from tax departments notice the returns must be filled with clarity.
80C and other Deductions
Deductions from total Income can be claimed like PPF, ULIPs, ELSS, and many other sources.
Penalty for Late Filing Income Tax Returns
Under Section 234F, the penalty is charged if the Income-tax return is not filed within the due date. The defaulters are liable to pay late ITR Filing fees of:
- Rs 5,000 if the tax return is filed after the due date but on or before December 31 of the assessment year- For income above Rs. 5 lakh.
- Rs.1, 000 if the tax return is filed after due date – For income below Rs. 5 lakh.
- Rs 10,000 if the tax return is filed after December 31 but before the end of the mentioned assessment year.
- In case the taxpayers are eligible to receive a refund, and there is a delay in filing Income Tax Returns, taxpayers will have to pay 1% interest on the pending amount.
Step by Step Guide to file Income Tax Returns Online
|Step-1||Login to the portal – https://www.incometaxindiaefiling.gov.in/home|
|Step-2||Download the appropriate form|
|Step-3||Fill all the details in Form 16|
|Step-4||Computation of taxable amount|
|Step-5||Confirm all the above details|
|Step-7||Digital signature(Not mandatory in case it is not available)|
|Step-8||Confirm ITR verification|
We at Corpbiz will provide you with expert assistance in filing your Income Tax Returns. Our Professionals comprising of well versed CAs will help you claim a maximum tax refund. We will also keep track of the due dates and the tax refund application.
It is mandatory to file Income Tax Returns on or before the due date to avoid facing penalties. As a real Indian, it is considered a duty and responsibility to file a tax return. It highlights all the expenses along with the revenue generated, thus helping in the claim of refunds. The Income Tax Department examines the Income Tax return to check fraud or misstatement of revenue. So it is better to take the help of professionals and file your returns timely and accurately.
Read our article:Do You Know About Income Tax For NRI in India: 10 Minutes Read