Income Tax Return
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Online Income Tax Return Filing
In today’s fast-moving world, everybody is running to earn more and more money. Whether it is business or be it service, men and women both aim at reaching the top and getting the highest profit or pay. In such a situation, where people do have the time to breathe, Income Tax Return filing can be an intimidating task. A slightest of mistake can land us into a mine of a botheration with the Income Tax department. Every person has to take many precautions while filing their Income Tax Returns. Some people take the help of professionals like Chartered Accountants and Tax Lawyers for ITR filing online. We the Legal Pillers which are providing CA Services and are tax consultant in India will guide and assist you more on Income Tax Return filing and the benefits that come along with it and help you with the correct form which is applicable and with exact time.
What is the Income Tax?
Every person who earns money exceeding a certain amount is subjected to pay government tax, known as Income Tax. The income earned by a person can be through salary, interest from savings, income from mutual funds, sale of a property, profit from a business, and professional income. In simple words, the tax paid or deducted on these revenues is called Income Tax. The Union Budget pre decides the rate of Income Tax at the beginning of every year. In India, there are two types of taxes.
- Direct Tax
- Indirect Tax
- Direct Tax
It is the tax, which is calculated and directly paid on your income. Tax on Salary is one such example of Direct Tax.
- Indirect Tax
It is the tax, which is charged to you indirectly on the purchase of goods and services. After the new rule, most of the indirect taxes are covered under Goods and Services Tax (GST). Tax charged on the purchase of mobile is one example of Indirect Tax.
What is Income Tax Return?
Income Tax Return or efiling income tax is a form that one must fill and submit it electronically to the Income Tax department. The form requires you to give details on your revenue and taxes (Taxes – which you have paid or that others have deducted from your income). The Income Tax e-filing forms are in different formats depending on the category of the Income earned. The Income Tax Returns should be filed every year within the specific dates and Income tax department of India has also decided various forms for it such as ITR 1, ITR 2, ITR 3, ITR 4S, ITR 5, ITR 6 and ITR 7.If you have paid excess tax during a particular year, you will be eligible for ‘Income Tax Refund’, which is subject to the IT department’s calculations and analysis.
Who has to file Income Tax Return?
Referred below is a list of individuals who need to file their IT Returns:
- Every such person who is liable for paying taxes i.e. Every company, be it Private limited, LLP or partnership irrespective of the income or loss must file IT returns
- A person who wants to claim a TDS refund eiving income from property under charitable trusts, religious trusts or income from voluntary contributions
- Individuals receiving income from bonds, fixed deposits, house property
- Individuals and companies who wants to claim the refund of the tax
- A resident of India who has signing authority in a foreign account
- Every Indian who has an asset or any other financial interest in foreign
- For long term capital gain
- People interested in filing voluntary Income Tax Return (This helps in the future when taking a loan or any other financial assistance)
Due Dates of LLP ROC Compliance
|ITR 1 (Sahaj)||This is for resident individuals with a Total Income of up to Rs. 50 lakhs (Having Income from salary/Pension, One House property, Other Sources, and Agricultural Income of up to Rs. 5000.)|
|ITR 2||This is for individuals and HUFs that do not have any income under the heading profits and gains of business or profession. It may be from capital gain, lottery.|
|ITR3||This is applicable on Individual and Hindu Undivided Family who have income from profits and gains of business or profession.|
|ITR 4||This is for individuals and firms and HUFs (excluding LLPs) that are residents and have a Total Income of up to Rs. 50 lakhs and have Income from business or profession, which is computed under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However if the turnover of any business exceeds the limit of Rs.2 crore, then the taxpayer has to file ITR-3 in that case. (This is not applicable for an individual who is a Director in a company or has invested in Unlisted companies).|
|ITR5||This ITR is applicable to Firms, LLPs, (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Business trust and investment fund.|
|ITR6||This is applicable to all companies except all those who have claim tax exemption under section11 (Income from property held for charitable or religious purposes).|
|ITR7||This Return is applicable to persons including the company which are required to furnish the return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).|
Benefits of Income tax Return Filing
There are different according to the types of GSTR. But the common documents are: Mentioned below are the different forms available Income Tax filing online portals that a taxpayer can use to file their return:
- Avoid Penalty
Many of the Individuals and Corporate entity if are required to file the Tax returns but they didn’t file then non-filing of income tax returnslevies a penalty up to of Rs 5,000.
- Carry Forward Losses
As per the Income tax law, if the Income tax return is filed within the due date, then you will be able to carry forward losses to subsequent years, and set them off against future years’ income.
- Tax Refund
Once, you filed your Income Tax Return then you will be able to Claim for the tax refund from the Income Tax department.
- Loan Approval Ease
Filing the Income tax return will help the Individuals and corporates to get the easy loan approval from the Banks and financial institution.
Due Dates for Filling ITR
- Firm and Individual or Body of Individual who are not liable for auditing- July31st
- Company who is liable for Auditing-September 30th
- All Individual and those companies who are filing belated returns-March 31st.
Documents are required for filing Income tax Returns?
As such, one does not need to attach any documents while filing the Income Tax Return. However, the mentioned documents will help you ease the filing process:
- PAN Card
- Aadhaar Card
- Form 26 AS
- Form 16
- Bank Statement
- TDS Certificate
- Receipts of Investment to claim deductions under various sections like PPF, LIC, donation, charity
- Various proof of investments
- Mandatory documents on sale and purchase of assets/investments
- Receipt/challan of any tax paid i.e. advance tax or self-assessment tax
- Copy of all the audit report and balance sheet, income statement, profit and loss account person details of the directors and partners.
What is Form 26 AS?
Form 26 AS is a consolidated annual statement issued as per the Income Tax Act, 1961. The form encloses details of various taxes that have already been deducted from your income by the deductors. The form also consists of a list of advance taxes (if any applicable) and a self-assessment tax that has already been paid by you during the relevant financial year. Apart from this, the Form 26 AS also contains a statement on details of Tax Collected at Source (TCS). The form also contains the details on Income Tax Refund (if any) received from the Income Tax department during the relevant year. Note: Deductors include employer, banks, and tenants
What is Form 16?
Income Tax Form 16 is a certificate issued by an employer, to you when the Tax Deducted at Source (TDS) has already been subtracted from your salary, and deposited to the IT department. Form 16 consists of all the information that you would need when preparing and filing your online Income Tax Return, which will include the deductions. Form 16 is issued every year by the employer on or before 15th June of the relevant financial year. You can directly upload the form and quickly complete your ITR filingonline. Form 16 essentially consists of two parts – Part A and Part B.
- Part A – Form 16
Part A, Form 16 can be easily generated and downloaded by the employer from TRACES. The employer is required to authenticate the correctness of the contents of the form before issuing it to the employee. Some components of Part A are as mentioned:
- Name and Address of the employer
- TAN number of employer
- PAN number of employer
- PAN number of the employee
- Summary of Tax deducted and deposited (certified by employer)
Note: If a person changes the job during one financial year, every employer will issue a separate Part A of form 16 for the particular period of employment.
- Part B – Form 16
Part B, of From 16 is an addition to Part A. Some components of Part B are as mentioned:
- Detailed break-up of the salary
- Deduction certified under the Income Tax Act
- Relief under the Section – 85
Note: If a person changes the job during one financial year, it is for you to decide whether you want Part B from every employer or just the last one.
What is the mode of filing Income Tax Return?
Every individual has to file his or her Income Tax Returns electronically. However, there are some exceptions to it:
- A senior citizen above the age of 80 years
- A person with an income of less than Rs. 5 Lakh and had no Income Tax Refund to be claimed.
Why should you file Income Tax Return?
Many people think that the e-filing Income Tax Return is optional. Hence, they give no notice of it considering it unnecessary. Filing your Income Tax Returns is a yearly happening, which is the moral and social duty of every responsible Indian citizen. Some of the benefits of filing Income Tax Returns are:
- To claim Tax Refund
- To carry forward the losses
- To apply for government tenders
- To avail loans
- To avoid unnecessary scrutiny by the Income Tax department
- Helps with Visa processing
Deductions in the Income Tax Act?
Mentioned below is a list of some major deductions allowed to every individual under the Income Tax Act:
|TYPE OF DEDUCTION||MAXIMUM LIMIT OF DEDUCTION|
|Interest On Savings Bank Account||TRs. 10,000\-|
|Equity Savings Scheme||50% of the Total amount invested (Maximum deduction Rs. 25,000\-)|
|Under Section 80C, 80CCC, 80CCD for Insurance policies, LIC, and PF||Rs. 1,50,000\-|
|The premium for Medical Insurance (including parents who are a senior citizen)||Up to Rs. 75,000\-*|
|The premium for Medical Insurance under 80D for Senior Citizens (including parents who are a senior citizen)||Up to Rs. 1,00,000\-*|
|Interest on Loan for higher education from financial institutions||Interest for a maximum of 8 years (Subjected to conditions)|
|Interest on Loan for the acquisition of residential property from financial institutions||Rs. 50,000\-|
|Interest received from Savings Bank Account||Rs. 10,000\-|
|Investment in long term infra bond notified by the government||Rs. 20,000\-|
|Donations to trust and charities under 80G||Depends on the type of donation|
What happens if a person does not file Income Tax Returns?
In case, if you do not file your Income Tax Return due to any reason, the Income Tax Department will send you a notice asking you to abide by the rules and file your returns. This process might include penalties for delay in filing or not filing the Income Tax Returns. In defaulter cases, the IT department does not pay back your refunds. Also, if you are found to pay taxes to the government, the interest on the base tax keeps adding up on your principle amount until you clear all your dues. Under the Income Tax Act 1961, a new section 234F has been added with effect from the assessment year 2018-19. Under the section, a penalty is levied to the person if they have failed to file returns within the due date.
How Legal Pillers Help you?
- Legal Pillers will help you to file the income tax efiling within due date to avoid penalty.
- Our Professionals are available 24/7 which helps only few minutes to file the online income tax return filing.
- Most of the persons choose the incorrect form our professionals will help you to Pick the correct IT online return form.
Frequently Asked Questions
|From Rs.2, 50,001 to Rs. 5 lakh – 5%||12,500/-|
|From Rs.5, 00,001 to Rs.7.5 lakh – 10%||25,000/-|
|From Rs.7, 50,001 to Rs.10 lakh – 15%||37,500/-|
|From Rs.10, 00,001 to Rs.12.5 lakh – 20%||50,000/-|
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