Every Indian who falls under the Income Tax slab rates has to necessarily file an Income Tax Return to the authorities. It is now possible to file your income tax return easily and quickly through the online process. There are no time limits and this method is precise and quick.
Moreover, submitting ITR forms is a must when filing an income tax return in India through the official website. Individuals and salaried individuals must use separate ITR forms. As the income tax department has different forms with titles ranging from ITR 1 to ITR 7, this is a crucial responsibility to file the correct form and with accurate details. Every form is for different purposes with different objectives.
The tax forms or forms needed to file income tax with the Income Tax Department are known as income tax returns (IT returns). The revenue statistics used to determine the tax burden are typically entered into the tax return itself, which is typically formatted in a predetermined format of the ITR form. Tax returns give the person the option to estimate their tax burden, make payments, and obtain refunds. For every person or company that received income during the year, whether from wages, interest, dividends, capital gains, or other profits tax returns must be submitted each year.
E-filing has made the process of ITR filing easy and quick, and due to this reason, people now get their ITR filed through online mode. Therefore, let us dive deep, and understand the benefits of filing an Income Tax Return:
By filing the income tax return on time, you save yourself from any notices that might be issued in your name from the income tax department in case of failure or delay in filing the ITR.
If you will file your income tax return on time, then it will become easy for you to maintain your financial records, and keep track of your money earned and invested.
In case you have incurred losses in the previous financial year, and have filed a proper Income Tax Return. Then, ITR filing will enable you to utilize losses incurred in the past to reduce your future taxes.
Filing Income Tax Returns online on time will result in a quick and easy tax refund, which can have a positive financial impact.
If your income is less, even then, it is always advised to file an ITR as this will help you in maintaining a good tax record. Filing an ITR will increase your credit score and increase your accessibility to credit cards and loans.
E-filing of Income Tax Returns can help firms fulfill their tax responsibilities more easily by streamlining the tax procedure.
ITR filing helps you properly evaluate your financial status
Any individual will have to mandatorily file ITR in the following circumstances:
You must file your tax return even if your income is below the basic exemption level if any of the following apply to you:
The different types of ITR forms are mentioned below:
Form ITR-1: Individuals with only one residential property and less than Rs. 50 lakhs in annual income from salaries or pensions may file an ITR-1 form.
Form ITR-2: Those who are NRIs, directors of corporations, shareholders of private firms, or who have capital gains income, foreign-source income, two or more residential properties, or income over Rs. 50 lakhs are required to file an ITR-2 form.
Form ITR-3: Individuals who are professionals or who run a sole proprietorship in India are required to file the ITR-3 form.
Form ITR-4: Taxpayers who are enrolled in the presumptive taxation scheme may file an ITR-4 form. The taxpayer must have less than Rs. 2 crores in business revenue or less than Rs. 50 lakhs in professional income in order to be eligible to file this form.
Form ITR-5: Partnership businesses, LLPs, organizations, and bodies corporates are required to file the ITR-5 form in order to declare their revenue and compute their taxes.
Form ITR-6: India-registered companies are required to file the ITR-6 form.
Form ITR-7: Entities seeking exemption as political parties, colleges or universities, scientific research institutions, and charitable or religious trusts, must complete the ITR-7 form.
The following are required to be furnished in order to file an ITR:
The procedure of online income tax filing is mentioned below:
Step 1: First and foremost, save all soft copies that is, scanned copies of all the necessary paperwork, such as your bank statement and previous year's return for your online ITR filing.
Step 2: File and submit the ITR Form 16.
Step 3: Gather and compile all the required documents, and provide these to a professional to apply for ITR.
Step 4: By reaching at the official website, the professional or the experts at PSR Compliance will file your ITR online by selecting the correct ITR form.
Step 5: The source of your income category will determine which ITR Filing Form will be used, and professionals will complete it with all the necessary data and claim any relevant exemptions.
Step 6: After accounting for all exemptions, our professionals will make you aware of any pending taxes or answer your queries, if any.
The option of online ITR filing has made the ITR filing procedures hassle-free, simple, and efficient. With an easy, convenient, and secure scheme, PSR Compliance provides expert income tax return e-filing services to help you maximize your taxes while lowering the business issues and complexities. With years of experience in the same field, we offer the best services while claiming exceptions and deductions on your taxable income.
Every year, the individuals, NRIs, partnerships, LLPs, companies, and trusts are required to file income tax returns.
Absolutely, there are penalties and interest charges for taxpayers who fail to file their income tax returns on time.
The easiest way to get your tax refund is to file a full income tax return before the deadline. As you submit your return, you may review the entire amount of advance tax payments made on Form 26AS.
If you experience any financial loss in any given year, you still have to file your return on time. In the next years, you can simply file less tax while showing the carry forward losses. However, you won't be able to use this option unless your income tax return is filed on time every year, irrespective of the profit or loss you make.
If your total income for the given financial year exceeds? 2.5 lakh, you are required under the Income Tax Act to file an income tax return in India.