Income Tax Return is the form in which assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. While filing, the total income tax you owe to the government is also calculated. If you’ve paid more tax than needed for the financial year, the IT Department will refund the extra money to your account. If you have underpaid taxes for the year, please pay the remaining amount, and then file your income tax returns.
If you are planning to go abroad for higher studies, or are about to take up a job outside of India, you’ll need at least three years’ filed income tax returns to show as proof of income.
An income tax return is an important document you must produce at the time of availing a loan, as it reflects your financial discipline as well as shows your capacity to repay loan.
Salaried personnel receives the income after deduction of TDS. It may happen that after the eligible deductions, the tax liability is lower than the amount of TDS actually deducted.
Income tax rules allow carry-forward losses to set them off against capital gains only to those who file ITR in the relevant assessment year, which makes your tax transaction easy.
Having an Income Tax return receipt is important because it is more detailed than Form 16, entailing your income and taxation along with revenue from other sources uses as proof.
Hefty amounts would be charged for non-filing of income tax returns and hence it is always better to file it to avoid legal repercussions and help governments for building better India
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