Income Tax Return

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File your Income tax return by 31st August, 2019 to avoid penalty. Hurry!

WHY FILE IT RETURNS

The advantages of filing for IT returns are:

  • Loans: Bank loans like education loans, vehicle loans, personal loans, can be availed easily as they require last three year’s IT returns.
  • Visa: As Immigration centres scrutinize many documents and IT returns proofs is a mandatory document for visa applicants.
  • Avoid penalties: Hefty amounts would be charged for non-filing of income tax returns and hence it is always better to file it to avoid legal repercussions.

WHO SHOULD FILE IT RETURNS

It is mandatory to file a tax return, if the income is above the basic limit, even if the payable amount is zero or refundable. Each category given below has its own taxable slab.

  • All partnership firms regardless of income.
  • A university, college or other institution referred to u/s 35(1)(ii)/(iii).
  • Non-resident Indians. Those covered by u/s 115AC and 115G are exempt.
  • Co-operative society, company, and local authority, notwithstanding of income.
  • Units/undertakings claiming deduction u/s 10A 2[or 10B], SO-lA, 80-IAB, 80-IB or 80-IC .
  • Any person who has suffered a loss from a business or profession or speculative business or capital.
  • Individuals, Hindu undivided families, Association of Persons/ Body of Individuals and artificial juridical persons.
  • Societies and Trusts – Income gained from property held for charitable, religious purposes or receiving voluntary contribution.
  • Persons who have not filed their return and have received a notice for assessment under Section 142(1) or reassessment u/s 148.
  • A scientific research institution, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union.
  • Any person who has paid TDS or advance tax in excess of tax payable on total income, or who has paid tax but does not have taxable income.

DOCUMENTS REQUIRED FOR IT RETURN

  • Bank statements
  • Proof of investments
  • T.D.S. Certificates in Form 16 or 16A as applicable
  • Documents on purchase and sale of investments/assets
  • Challan of tax paid such as advance tax or self-assessment tax
  • If PAN is applied but not received, a copy of filed PAN application and its acknowledgment
  • In case not applied for PAN, a PAN application form duly filled in and two passport size photographs
  • For businesses – a copy each of the audit report, balance sheet, trading, profit and loss account, personal account of proprietor or partners
  • Statement of receipts and payments when no regular books are maintained
  • Receipts of payment of insurance premium, provident purchase of NSCs, new equity shares, mutual fund, NSS, donations, etc. to support claimed deductions
Return Type Applicability
ITR-1 ITR-1 form can be used by Individuals who have less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only.
ITR-2 ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house property, income of more than Rs.50 lakhs.
ITR-3 ITR-3 form must be filed by individuals who are professionals or persons who are operating a proprietorship business in India.
ITR-4 ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income.
ITR-5 ITR-5 form must be filed by partnership firms, LLPs, associations and body of individuals to report their income and computation of tax.
ITR-6 ITR-6 form must be filed by companies registered in India.
ITR-7 ITR-7 form must be filed by entities claiming exemption as charitable/religions trust, political parties, scientific research insitutions and colleges or universities.

Its is mandatory for individuals, NRIs, partnership firms, LLPs, companies and Trust to file income tax returns each year. Individuals and NRIs are required to file income tax return, if their income exceeds Rs.2.5 lakhs per annum. Proprietorship firms and partnership firms are required income tax return – irrespective of amount of income or loss. All companies and LLPs are mandatorily required to file income tax return, irrespective of turnover or profit. YourProfit.in provides income tax efiling services with dedicated Tax Expert support. Upload your Form-16, sit back and relax. Our experts will file your income tax return and provide you the acknowledgement within 1 – 2 business days.

QUESTIONS & ANSWERS

What is Income tax?

There are two types of taxes in India – direct tax and indirect tax.
Direct tax is a tax that is calculated and paid directly on your Income e.g. tax on salary etc. Income tax is a direct tax.
Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service e.g. Buying a mobile phone or eating in a fast food joint. The seller of the mobile phone or the fast food service provider charges you tax and then deposits the same to the Government account. Most indirect taxes are now covered under Goods and Services Tax (GST).

Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India). The tax paid or deducted on these incomes is called the income tax.

What is Form 16?

Form 16 is a TDS certificate that an employer issues to you when TDS is deducted by the employer. An employer is required to deduct tax at source (therefore the name TDS – Tax Deducted at Source) when the employer pays salary to the employee (you). The employer deducts this tax on behalf of the Government and after deducting deposits the tax to the Government. The employer is then required to give a certificate to the employee giving the details of tax deducted. This certificate is called the Form 16.

In case no TDS has been deducted by the employer they may not issue you a Form 16.

You will require your Form 16 from your employer to file your tax return. You can directly upload your Form 16 and file your income tax return quickly.

What is Income tax return?

An income tax (IT) return is an income tax form which you need to fill and submit it electroncially to the Income tax Department. In this form you need to give details of your income and taxes (taxes – that you may have paid or other people who may have deducted your tax). The income tax return forms are in various formats viz ITR-1, ITR-2 etc. Each form depicts a separate category of Income tax payers. You need not worry of your category as myITreturn handles it for you automatically.

Remember, Income tax is a Direct tax and you need to only report Direct Income (salary, pension, interest etc) and taxes paid on that Income. The tax return formats are predefined formats by the Central Board of Direct Taxes (CBDT- which is also called the Income tax Department).

The tax returns must be filed every year and must be filed by a specific date. If the return shows excess tax has been paid during a given year, you are eligible for a ‘income tax refund’, subject to the department’s interpretations and calculations.

What if I do not file?

In case you do not file, the Income tax Department will send you a notice asking you to file your return and may ask you to pay a penalty for not filing your income tax return. You will not be given your refund. If you are found to owe the government taxes, the interest on the base tax keeps adding up till you pay.

If you are found to owe the government taxes money, then the interest keeps adding up till you pay. A penalty may also be levied.

A new section 234F has been inserted in Income Tax Act, 1961 with effect from Assessment Year 2018-19 (Financial Year 2017-18). Under this section, fee (penalty) is levied if the Income-tax return is not filed within due date. Earlier penalty for delay in filing of return was levied at the discretion of Assessing Officer. But now, the same is payable before filing of Income-tax return.

My company deducts TDS. do i still have to file my tax return?

Yes, deducting TDS and filing a tax return are two different things. You file a tax return to show that you have paid all the taxes you needed to pay. The income tax return is also a useful document when it comes to applying for a loan or visa.

How do i pay tax to government?

You can pay the tax directly on the Income Tax Department website using your Netbanking account with challan 280.

Can I file income tax returns or years I missed?

Yes, in any given financial year, you can file for the last two years. For e.g in FY 2016-17, you can file for both FY 2015-16 and FY 2014-15 online.

Is is necessary to attach any documents along with the return of income?

Taxpayers are not required to attach any documents like proof of investment, TDS certificates, for ITR return forms along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

If i had paid excess tax, how will it refunded to me?

The excess tax can be claimed as a refund by filing your Income tax return. It will be refunded and credited back into your bank account through ECS transfer. It is important to make sure no mistakes are made while mentioning bank details such as account number, IFSC code etc in the ITR form.

Is it necessary to file a return of income when i don't have any positive money?

You must file your return before the due date, if you have sustained a loss in the financial year and if you want to carry forward to the subsequent year for adjustment against subsequent years positive income. Loss can be carried forward only if you have filed the return claiming such loss before the due date.