In every sphere of life, everyone has to shell out a percentage for
everything that they buy, directly or indirectly. This shelling out of money is
basically in layman terms called a tax.
Tax exists everywhere, at the movies, at a restaurant, for services and even
for your electricity. It is the duty of each and
every citizen to pay the tax to the Government.
What Is Income Tax Return?
Income tax return is plainly the filing of the income tax form
prescribed by the Government by a citizen. The tax return form contains
information concerning the person’s income and tax paid to the Government. This
tax return form is filed at the end of each
financial year by people who come under the taxable slab.
Who Fills An ITR?
Filing of income tax returns is necessary for people whose annual income
exceeds Rs. 2.5 lakhs. You can also be an individual in the possession of valid credit. The criteria however for a
senior citizen of 60 years of age is Rs. 3
lakhs per annum and for a super senior citizen of 80 years of age is Rs. 5
lakhs per annum. ITR’s also need to be filed by people who own immovable
property as well as vehicles.
Why Should One File Income Tax Returns?
The Income Tax Act, 1961 of India, section 139(1) states that all
individuals whose total income of the previous year extended the maximum amount
not taxable, is mandatory to file
Income Tax Returns (ITR). Taxable income is the gross income minus the
deductions or exemptions permitted in that tax year.
What Is Individual Income Tax Return?
Every individual salaried or self-employed and who earns a certain
amount of income needs to file an individual income tax return. An individual
income tax return is a document to be filed with the Internal Revenue Service
IRS or the state tax board specifying your income, profits and losses in
business, other deductions and detailed description of taxability or tax
refund. Taxation rates vary depending on the characteristics of a taxpayer. The
filing of tax returns forms depends on various criteria as each taxpayer cannot
submit the same form.
What Is The Deadline For Filing Individual Income Tax Return?
Each taxpayer has to file their individual income tax returns by the 31st
of July for each financial year.
What Are The Different Income Tax Returns Forms?
·
ITR-1: This is for
persons who are salaried, pensioners, or who acquire income from a house
property or lottery with no loss or foreign relief. However, a person who has
an income above Rs. 50 Lakhs cannot file under this category.
·
ITR-2: This is for persons
who do not have income under any proprietary firm.
·
ITR-3: For those
persons who are business owners and professionals.
·
ITR-4: For those
persons who are assessed on a presumptive basis.
·
ITR-5: For
Association of Persons, Body of Individuals, LLPs, etc.
How Do You Compute Your Income For Tax?
Your individual income tax return has to be
calculated after certain deductions are
made. These deductions can be made
under Section 80D for medical insurances, Section 80G for donations, Section
80C for investments/expenditure. Tax rates are
also computed after all tax variables and deductions are done at the salary level. Balance tax rate
after claim of prepaid tax needs to be paid
after tax returns are filed.
How Do You File Your Individual Income Tax Returns?
Individual income tax returns can either be
filed in the electronic or the digital paper format. Persons with
incomes less than Rs. 5 Lakhs can file their individual income tax returns in
the physical form. However, those wishing to claim tax refunds have to compulsorily file in the digital format.
Quoting and linking your Aadhar number with your PAN number is an
important criterion before filing your
tax.
Steps for Filing Your Individual Income Tax Returns
1. Creation of your e-filing account on the Government’s income tax website
under the Register Yourself tab is the first step in this process.
2. You need to access the Form 26AS and download the same. Form 26AS is basically your computed tax statement paid by
you against your PAN number.
3. Download the ITR form that is suitable to
your income category.
4. Fill all your income details in the ITR form. These details will be your basic details, bank details and
income details. Kindly re-verify your details before moving on to the next
step.
5. Calculate your liability in terms of
deductions.
6. Submit your filled income tax form.
7. Send a print out of your ITR form to the Income tax department after
which you will check the status of the receipt.
