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.
The tax returns have to be filed before a specified date. Failure to abide by the deadline, the taxpayer has to pay a penalty. Is it mandatory to file income tax return? As per the tax laws in India, it is compulsory to file ITR if your income exceeds the exemption limit. The taxpayer should read the guidelines carefully as a delay in filing returns not only results in late filing fees but also creates an obstacle in getting a loan or visa for travel purposes. Who should file income tax returns? Every individual or business has to file income tax return if his total income exceeds the maximum amount which is not chargeable to tax. There are different basic tax exemption limits for an individual that depends on age. Let’s understand who should file ITR in detail: ● As per income tax act, in any of the following situations, it is mandatory for you to file income tax return in India ● All registered companies or firms that generate income, irrespective of whether they've incurred profit or loss during the financial year ● Those who wish to claim an income tax refund ● If you are a resident individual and have assets or financial interest in an entity located outside India ● Foreign companies taking treaty benefits on transactions in India ● Proof of return filing may also be required at the time of applying for visa or loan Documents required to fill ITR Before starting your e-filing process, it is important that you have all the relevant documents handy. ● Salary slips ● Aadhar Card and PAN card ● Bank and post office savings account passbook
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Form-16- TDS certificate Interest certificates from banks and post office Tax saving investment proofs Income tax login ID and password
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