Income Tax Return Guide: What is it, who should file ITR and Documents Required Income tax in India is imposed by the Government. The Government levies tax on taxable income of all persons who are individuals, body of individuals and business entities. According to these laws, every individual who qualifies as a resident of India is required to pay tax on his global income.
What is an income tax return? An Income tax return (ITR) is a form that contains information about the person’s income and taxes to be paid to the Income Tax Department during the year. Income can be of any form such as income from house property, salary, capital gains, and other sources such as dividends, interests. As per the laws, the return must be filed every year by an individual or firm pertaining to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.