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.
What is the consequence of a delay in ITR filing?
The consequence of delay in ITR filing is those who fail to file TCS or TDS statements by the stipulated date must pay the penalty ranging from Rs. 10,000 to Rs. 1,00,000 on top of the late ITR filing penalty under Section 234E. Section 234E imposes a fee of Rs. 200 daily until TCS or TDS is paid.
Who should file for ITR online?
- Anyone with a valid PAN can file an IT return.
- Companies and enterprises are required to file ITRs.
- Individuals whose taxable amount exceeds the maximum amount not subject to taxation must file an income tax return
What is Form 15G & Form 15H?
Forms 15G and 15H are self-declaration forms that an individual sends to the bank to request that TDS on interest income not be deducted since their income falls below the basic exemption level.
What is the minimum income requirement for online ITR filing?
According to the Income Tax Act, you must file an ITR in India if your total income exceeds Rs. 2.5 lakh during the fiscal year.
Is it necessary to attach documents while ITR filing?
Yes, it is necessary to attach documents while filing for ITR.