Income Tax Return

An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return shows that excess tax has been paid during a year, then the individual will be eligible to receive a income tax refund from the Income Tax Department.

As per the income tax laws, the return must be filed every year by an individual or business that earns any income during a financial year. The income could be in the form of a salary, business profits, income from house property or earned through dividends, capital gains, interests or other sources.

Tax returns have to be filed by an individual or a business before a specified date. If a taxpayer fails to abide by the deadline, he or she has to pay a penalty.

Who should file Income Tax Returns?

According to the Income Tax Act, income tax has to be paid only by individuals or businesses who fall within certain income brackets. Mentioned below are entities or businesses that are required to compulsorily file their ITRs in India.

  • All individuals, up to the age of 59,:- whose total income for a financial year exceeds Rs 2.5 lakh. For senior citizens (aged 60-79), the limit increases to Rs. 3 lakh and for super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs. It is important to note that the income amount should be calculated before factoring in the deductions allowed under Sections 80C to 80U and other exemptions under section 10.
  • All registered companies that generate income, regardless of whether they’ve made any profit or not through the year.
  • Those who wish to claim a refund on the excess tax deducted/income tax they’ve paid.
  • Individuals who have assets or financial interest entities that are located outside India.
  • Foreign companies that enjoy treaty benefits on transactions made in India.
  • NRIs who earn or accrue more than Rs. 2.5 lakh in India in a single financial year.

Documents required to fill ITR

It is important to have all the relevant documents handy before you start your e-filing process.

  • Bank and post office savings account passbook, PPF account passbook
  • Salary slips
  • Aadhar Card, PAN card
  • Form 26AS – your consolidated annual tax statement. It has all the information about the taxes deposited against your PAN salary paid to you and TDS deducted E

                Interest certificates from banks and post office

  • Form-16A, if TDS is deducted on payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws.
  • Form-16B :- from the buyer if you have sold a property, showing the TDS deducted on the amount paid to you
  • Form-16C :- from your tenant, for providing the details of TDS deducted on the rent received by you, if any
  • a) TDS deducted by your employer
  • b) TDS deducted by banks
  • c) TDS deducted by any other organisations from payments made to you
  • d) Advance taxes deposited by you
  • e) Self-assessment taxes paid by you
  • Proofs to claim deductions under section 80D to 80U (health insurance premium for self and family, interest on education loan

Home loan statement from bank.