An income tax is a kind of direct tax that the governments imposes on financial income obtained by all the departments within their legal power or jurisdiction. According to law, different businesses and the individuals must file an income tax return every year to check whether they owe any taxes or are eligible for a tax refund. Income tax is an important source of funds that the government uses to carry out its various government policies for the public.
Now, what is “income tax return” (ITR):-
So, an income tax return is a type of certain form where taxpayers declare or announce their taxable income, deductions, and tax payments. This process of filing income tax returns is referred to as income tax filing. While filing up of the actuals, the total amount that should go to the government as income tax is also calculated. If you’ve paid more tax than required for that financial year, then you will be refunded back by the income tax department. Quite a time, you may also see that you have less paid taxes for that year. In such cases, you must pay the remaining of the tax, and file your income tax returns.
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In India, the Income tax return form ranges various categories from ITR 1 to ITR 7, and they are used for different types of income. Few of the income tax return forms are complicated and are larger than others, and they may need additional revelation such balance sheet and profit and loss statement information.
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According to Section 139 of the Income Tax Act, the filing of return is necessary for a certain class or range of taxpayers depending on their annual salaries. And also, as per the law Income tax returns must be filed every year by an individual or business companies that received income during the year whether through regular wages, interest, capital gains, or by any other source. This altogether must also be filled by a specific date.
Accordingly, as per the rules and regulations of Indian tax system. Filing of income tax is very important and compulsory in India and in case you fail in filling the income tax return you might have to go through legal aftermath or consequences for it. Filing of Income Tax Return is important as it proves to be a proof of your income so that it cannot be calculated as black money in the future.
Filling up the Tax Return is also an activity that has been done annually and is seen as a moral, ethical and social duty of every responsible citizen of a country.
The documents required for ITR filing are:-
- Form 16A or TDS certificate
- Documents on the purchase and sale of investments.
- Collect TDS certificate
- Statement related to home loan
- Proof of investments and Form 16A
- Abstract of Bank statements
- PAN card
- Aadhar card
It is advisable that for the purpose of filing your income tax returns your Aadhaar number must be cited and linked to your PAN Card.
The process to file ITR by going Online:-
Step1: Visit the e-filing website https://incometaxindiaefiling.gov.in
Step 2: Login to e-file your returns
Step 3: Register to e-file ITR
Step 4: Select the user type
Step 5: Basic details must be filled
Step 6: Fill the registration form
Step 7: Verification of PAN
Step 8: Activation of Account