Every citizen of India is required to pay income tax to the Government of India as per the Income Tax rules and regulations. This tax applies to individuals, associations, firms, LLPs, local authorities, and Hindu undivided families, and it is calculated based on their income for each financial year. Income Tax Return Filing in Delhi on an annual basis is essential, and taxpayers have the option to file their returns online or offline for their convenience.
Understanding Income Tax Return
An Income Tax Return is a form that taxpayer has to submit to the Income Tax Department of India, providing information about their income and taxes payable during a specific financial year, Which starts on 1st April of a year and ends on 31st March of the next calendar year. Income can be derived from various sources, such as salary, business profits, property sales, dividends, capital gains, and interest received, among others.
Compulsory Filing of ITR
According to Income Tax rules, anyone earning more than the exemption limit set by the Government is mandatorily required to file their tax return, following the applicable tax slabs for each year. Failing to file an ITR within the due date may result in penalties and also impact future loan or visa approvals.
Who Needs to File ITR?
Various individuals and entities are mandated by law to file income tax returns every financial year:
- Individuals: Any individual below 59 years with an annual income exceeding Rs. 2.5 Lakhs, senior citizens between 60 to 70 years with income above Rs. 3 Lakhs, and super senior citizens (80 years and above) with income exceeding Rs. 5 Lakhs need to file ITR.
- Registered Companies: Any registered company with yearly income, even if it hasn’t made any profits during the period, must file an ITR.
- Refund Claims: Individuals seeking refunds on surplus income tax or tax deducted from their annual income are required to file an ITR.
- Foreign Assets: Individuals having assets or financial interests outside of India need to file ITR.
- Foreign Companies: Companies from outside India enjoying treaty benefits on transactions within the country must file ITR.
- Non-Resident Indians: NRIs earning above the basic yearly exemption limit of Rs. 2.5 lakhs are required to file ITR.
Documents Required for ITR Filing
When filing income tax returns, individuals need to gather various documents, including:
- Pan card
- Adhaar card
- Bank Account Details and Statements
- For 26as AIS TIS
- Home loan Statement
- Capital Gain Details
- Rental Income
- Foreign Income
- Dividend Income
- Form 16: Provided by employers, it contains details of the salary paid and tax deducted at source (TDS).
- Form 16A: Contains details of TDS deducted on interest received from deposits like fixed or recurring bank deposits.
- Form 16B: Provides TDS details on property sale transactions.
- Form 16C: Records TDS details on rental income.
- Form 26AS: A comprehensive statement of taxes against the PAN number, including TDS by employers, banks, or other organizations, and self-assessment tax payments.
- Tax saving certificate: Tuition fee home loan statement PPF life insurance premium investment in NPS donation receipt medical insurance
Filing ITR Online
E-filing has made it possible for taxpayers to submit their tax returns from the comfort of their homes with the help of pre-approved tax preparation software by the Income Tax Department.
Some benefits of filing ITR online include:
- Refund Processing: To claim a refund on TDS deducted, taxpayers need to furnish their ITR for the respective financial year.
- Verification Proof: ITR forms serve as income verification for loan and visa applications, lending credibility to the applicant.
- Proof of Income: ITR is considered an officially verifiable proof of income for purposes such as buying a term plan.
Types of ITR Forms
There are seven different types of ITR forms, each designed for specific categories of individuals and sources of income:
- ITR-1: For resident individuals with total income up to Rs 50 lakhs and income from salary, house property, and other sources.
- ITR-2: Applicable to individuals and HUFs with income from sources other than business or profession.
- ITR-3: For individuals and HUFs with income from profits and gains of business or profession.
- ITR-4: For resident individuals, HUFs, and firms (other than LLP) with total income up to Rs 50 lakhs and income from specific sources.
- ITR-5: For entities other than Individuals, HUFs, Companies, and those filing ITR-7.
- ITR-6: Applicable to all Companies except those claiming exemption under section 11.
- ITR-7: For persons including companies required to furnish returns under specific sections.
Checking ITR Status Online
After submitting the tax return, taxpayers can check its status online through the e-filing website of the Government of India. Depending on whether they have a login account, they can follow simple steps to check their ITR status.
Conclusion
Filing Income Tax Returns is a crucial responsibility for every citizen of India falling within the taxable income brackets. By understanding the different ITR forms, gathering the necessary documents, and filing returns online, taxpayers can ensure compliance with tax laws and benefit from the advantages of timely tax filing.
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