How do I know if I’m eligible to file an income tax return?
- Those whose income exceeds the prescribed limit (Indian residents and NRI) – Required.
- Owner-operators
- Organizations
- In any case, the ITR filing is mandatory for ‘Partnership Firms’, ‘Sole Proprietorship Firms’, ‘Companies’, and ‘LLPs’ regardless of turnover, income, profit, or loss.
- Those who earn income from mutual funds, bonds, stocks, fixed deposits, interest, or house property.
- Income from charitable trusts, religious trusts, and voluntary contributions, as well as tax refund claims.
- Salary earners who exceed the exemption limit before deductions under sections 80C to 80U.
- Foreign nationals and technology professionals working on onsite projects with foreign income and assets are eligible.
ITR forms types
ITR Form Types include:
- ITR 1 (Sahaj)
In this form, individual residents earning income from a salary, single residence property, agriculture, and any other source are required to fill in their total income up to fifty lakh rupees and agricultural income up to five thousand rupees.
The above does not apply to individuals who are directors in a company, own unlisted equity shares or have foreign assets or foreign income.
- ITR 2
The form is for individuals and HUFs earning income from sources other than PGBP (profits and gains of business or profession). Those who have invested in unlisted equity shares during the financial year are also required to file it. Capital gains, lottery winnings, foreign assets, etc., must be a part of the total income, which should exceed Rs. 50 lacs. Agriculture income should be a minimum of Rs. 5 lacs. e filing itr for small proprietorship business
- ITR 3
It also needs to be filed by individuals who have income as partners in a business or profession.
Why should you file a tax return?
The following are the benefits of filing an income tax return:
- By doing so, the taxpayer becomes eligible to apply for a loan.
- It helps you claim a TDS refund or any other overpayment of taxes.
- In addition, losses can be carried forward.
- As a result, an individual becomes a responsible citizen.
- Ensures that penalty provisions are avoided.
- A loan or visa can be obtained using this document as financial evidence.
- Provides the government with information about taxpayer income.
How to fill out your income tax return: List of documents you need
In order to file an Income Tax Return, the following documents must be provided:
- Aadhaar copy and PAN number
- Details about the address
- Information about the bank account
- Payments from payroll & fixed deposits are disclosed in addition
- To claim a deduction, you will need the following data
- Information regarding the filing of TDS returns and the payment of advance taxes is required
- Proven investment
- Certificate of TDS in Form 16
How to file an income tax return
To file an income tax return, follow the steps below.
- Documents such as Form 16 (TDS Certificate issued by the employer), Form 16A (Bank Issued for TDS deducted on the interest payment on the Fixed Deposit), and capital gain statements should be collected.
- Verify that tax deposited with the government is deducted from your salary or interest income by filing Form 26AS and cross-checking with your TDS certificate.
- Form 26AS should be rectified in case of any errors. If there is an error, the taxpayer can’t claim the credit.
Frequently Asked Questions
- Filing an income tax return has many advantages, what are they?
- Taxpayers are eligible to receive loans through it.
- Tax paid in excess can be refunded via this form.
- In addition, losses can be carried forward.
- As a result, the individual becomes a responsible citizen.
- Avoids penalties.
2. How will the TDS/TCS reports be delayed?
If A taxpayer fails to deposit the TDS/TCS return on the due date shall be liable to pay a penalty of Rs. 200 for every day the return is delayed under Section 234E.
3. What happens if I pay too much tax? How will I get it refunded?
If you file your income tax return, you can claim back the excess tax. It will be credited to your bank account via ‘ECS transfer’. It is essential that no mistakes are made when considering bank details such as ‘account number’, ‘IFSC code’ in the ITR form.
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