Tax Filing

What is Tax Filing?

Tax Filing or Tax Return is a tax form. It discloses your Real Income and a proof that you have paid your rightful taxes to the tax authorities of Government. It is a worksheet where your income figure is used to calculate your tax liability. Tax returns file on a specific date whether it relates to an individual or a business.

Income Tax Return (ITR) is a form for reporting gross taxable income from different sources, claiming tax deductions and declaring net tax liability to the income tax authority. ITR is filed to the income tax department by a salaried or self-employed individual, Hindu Undivided Family (HUF), companies or firms. The process of filing the ITR is referred to as income tax filing. A taxpayer can file the ITR online on the e-portal of the income tax department. The process of filing ITR online is referred to as e-filing. The following article will explain important aspects of e-filing Income Tax Returns.

Income Tax Return (ITR)

Who needs to file Income Tax Return (ITR)?

An individual is required to file his Income Tax Return for a Financial Year if his taxable income for that year was in excess of the amount of basic exemption. It is mandatory for you to file Income Tax Return if your income is above the taxable limit. If your income does not exceed the taxable limit (Rs. 2.5 lakh per annum, according to FY 2016-17), you are exempted from Income Tax. Filing of Tax Return is every taxpayer’s duty and earns for you the dignity of consciously contributing to the development of the nation.
tax filing
tax filing

How to file Income Tax Return (ITR)?

Firstly you have to note that while filing the tax return, every individual having both PAN card or Aadhar Card. And also they should link to each other (According to Finance Act 2017) and your bank account details. The documents you are going to need for filing Tax Return depend on your source of income.

There’s income tax return form ranging from ITR 1 to ITR 7 for different types of income. If you are a salaried individual you are only going to need Form 26AS and Form 16. There are many options to file your Income Tax Return online through official website of Income Tax Department of India. It is simple, easy and quick. The Government offers various Tax Saving Schemes where you can invest your money.

Here is the list of some Tax Saving Schemes:

Documents Required for ITR Filing

The documents that are necessary for the filing of income tax returns online are as follows:

  • PAN card
  • Bank statement
  • Interest certificates from banks or post offices
  • Proof of tax-saving investments
  • Form 16 (for salaried individuals)
  • Salary Slips
  • TDS certificate
  • Form 16A/16B/16C
  • Form 26AS

Types of ITR Forms

On the Income Tax Department of India website, there are different forms that can be used to file income tax returns based on different income sources and types of taxpayers (resident/non-resident/individual/non-individual, etc.).

As of Assessment Year 2019-20, there are seven forms available from ITR-1 to ITR-7. Some of these forms might be longer than others and may require additional disclosures such as profit and loss statements. To help you know which one of the forms fits best to your requirements, here is each one of them briefly explained:

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