Income Tax Return: Hello friends, How are you? I hope you and your family members are doing well and taking a step towards success. Today I am welcome you all on a tax related topic and that topic is Income Tax Return. We all know that whether we fall in tax slab or not but we have to fill Income Tax Return as it is our responsibility. If a person is filing Return every year then it shows then it is indication that this particular person is a good responsible citizen. So guys stay connected to our website to learn more about Income Tax Return.
What Is Income Tax Return?
It is a form which is used to file information about our income and tax liability towards the Income Tax Department. The tax liability is calculated as per the income of the taxpayer. If this return shows that excess tax has been paid by the payer during a particular year then the taxpayer becomes eligible to receive a refund from the Income Tax Department.
In the income tax law it is written that the return must be filed every year by every individual or business that earns any income through any source of business during a financial year. The income may be in the form of salary, business profits, income from property or earning through dividends, capital gains, interests or other sources. This Return must be file before a specified date. If a we fails to file before or on the deadline date then we have to pay a penalty specified as per income tax law.
Is It Mandatory To File Income Tax Return?
Guys if this question is coming in your mind also then the answer is yes. It is compulsory to file Income Tax Returns if our income is more than the basic exemption limit. If we do delay in filing of return then it is not only attract late filing fees but also impact chances of getting a loan or a visa for travel purpose.
Who Can File Income Tax Return?
As per the Income Tax Act, everyone is liable to file return if earning falls within certain income brackets. Below are entities or businesses that are required to compulsorily file their ITRs as per the Indian income tax law-
1) All individuals
All the individuals up to the age of 59 and whose total income for a financial year exceeds Rs 2.5 lakh. For senior citizens (aged 60-79) this limit increases to Rs. 3 lakh and lastly for super senior citizens (aged 80 and above) the limit reaches to Rs. 5 lakhs. Here the important points is that the income amount is calculated before factoring deductions which is allowed under Sections 80C to 80U and other exemptions under section 10.
Note : These slab rates changes every year. So it is not necessary that non-taxable income is always be 2.5 lakh.
2) All Registered Companies
Any registered company that generate income is required to file ITR. Here the point is that it is not necessary that company made any profit or not through the year. ITR is required if the company is going in loss.
3) Who Want To Claim Refund
People who want to claim refund on the tax they have paid also can file ITR.
4) Assets Outside India
Individuals who have assets or any financial interest entities that are located out of India can file ITR.
5) Foreign Companies
Any foreign company that enjoy treaty benefits on any transaction made in India is required to file ITR.
NRI who earn more than Rs. 2.5 lakh in India in any financial year can file ITR.
Documents Required To File ITR
It is very important to collect all required documents before start e-filing process. The required documents are as follows-
1) Bank and post office account passbook, PPF account passbook
2) Salary slip for entire financial year
3) Aadhar Card, PAN card
4) Form-16- It is a TDS certificate issued to us by our employer which provide details of the salary paid to us and TDS deducted on it.
5) Form-16A – It shows TDS deduction on payments other than salaries i.e. interest received from fixed deposits, recurring deposits etc. up to the specified limits as per the current tax law.
6) Form-16B – It is required if we sold any property.
7) Form-16C from our tenant. It provide details of TDS deducted on the rent received by us.
8) Form 26AS – It is our consolidated annual tax statement. It contains all the information about the taxes deposited against our PAN. It contains-
a) TDS deducted by our employer
b) TDS deducted by banks
c) TDS deducted by any other organization from payments made to us
d) Advance taxes deposited by us
e) Self-assessment taxes paid by us
What Is Form 26AS?
Form 26As is a detailed document that show the portion of TDS on payments/investments made by individuals, employees and freelancers. It enables the taxpayers to claim refunds for any additional tax or overdue tax payments made by him or her.
How To Link Aadhar To Income Tax Return?
It is necessary for every individual taxpayer to quote their Aadhar number while filing returns. He/she is also required to link their PAN (permanent account number) card to their Aadhar number because nobody can file tax return unless the Aadhar number is quoted. Senior citizens can file their tax returns manually but people below 80 years have to file return electronically. To link your Aadhar number to your income tax return the following steps need to follow-
1)Type or write the number in the additional spaces provided in the new ITR forms on the Income Tax website.
2)If we have applied for an Aadhar number but it is not received yet then we can use the 28 digit enrolment ID in place of it.
3) If it is already added the the Aadhar number gets automatically populated in the ITR forms
What Is TDS?
As I have already used this word with their expansion in this article, TDS stands for tax deduct at source. It is a part of income tax. TDS is a form of income tax. It is reduced from the money paid at the time of making salary, rent, interested, professional fee etc. The government through TDS deduct income tax in advance. The salary that we received, TDS is already deducted from it.
I hope guys this article will give you lots of information. The Income Tax Return is a very vast topic. It is not limited only the things mentioned in this article. I will write one more article to cover the remaining things. Friends if you have any kind of query or suggestions regarding this topic then feel free to drop a message in the comment box. I will definitely resolve all your queries and will work on your suggestions.