What is Income Tax Return (ITR)?
Income tax returns or ITR are the tax forms used to declare the details of your income to the Income Tax Department to assess the amount you need to pay as income tax in a financial year.
Who is required to file an ITR?
Every Indian citizen whose gross total income exceeds the taxable limit must file an ITR. This implies, individuals and Hindu Undivided Families (HUFs) with total annual income exceeding Rs. 2,50,000 are required to file the income tax returns. For senior citizens (individuals between 60 years and 80 years of age) the threshold is Rs 3,00,000, and that for very senior citizens (aged above 80 years) it is Rs 5.00,000.
Is it mandatory to file an income tax return if my earning is below Rs 2,50,000?
No, it is not mandatory to file an income tax return if your annual income is below Rs 2,50,000.
What are the Advantages of filing an income tax return online?
There are many advantages of filing ITR online. Some of the benefits are as follows:
- Quick processing: You will get the acknowledgement of ITR promptly. Refunds, if any, are processed faster online than paper-filed returns.
- Accuracy: E-filing software minimizes errors
- Convenience: E-filing facility is available and can be done at your convenience
- Privacy: The data entered by you are safe as they cannot be accessed by anyone
- Record of past ITRs: It is easier to access previous data, should you need them at any time in future.
Do I need to maintain any records or proof of earnings?
Yes, in case of Income Tax Return filing, it is mandatory for every source of income you have to maintain proof of earning as specified under the Income-tax Act 1961.
Online ITR file or file ITR offline-which is easy?
The ITR file online or Income tax e filing is comparatively easy. To file income tax online; a few documents are only required. If you search how to apply for itr, the e return filing will be shown as an easier process.