Edit Content

Income Tax Return

Income Tax Return

An income tax return (ITR) is a form where taxpayers disclose their taxable income, exemptions, deductions, and tax payments. In India, an income tax return needs to be filed by individuals and entities to the Income Tax Department of India every year on or before the due date, which is usually July 31st of the assessment year. If you’re planning to file your income tax return, it’s recommended to seek the help of a chartered accountant or a tax consultant to ensure that your income tax return is accurate and is filed correctly.

Resource_Library___t_His___Rock_This_Revival-removebg-preview

Free Consultation by Expert

Contact Form Demo
Harshit Nagar- Uttar Pradesh, India
Read More
Professional service for accurate and timely income tax return filing.
Rakhi Solanki- Delhi, India
Read More
Seamless income tax return filing, handled with precision and care.
Sagar Bhati- Delhi, India
Read More
Hassle-free income tax return preparation, managed with expertise.

Under which act Income Tax Return Fall ?

 In India income tax return is formed under the Income Tax Act, 1961. The Act levies taxes on the total income earned by individuals and businesses in a financial year. The Income Tax Act mandates every person, whose income exceeds the prescribed limit, to file an income tax return every year. It’s important to adhere to the guidelines and regulations mentioned in the Act and consult a tax expert for any queries.

What are the eligibilities for Income Tax Return ?

Every person whose total income exceeds a specific limit as prescribed under the Income Tax Act, of 1961 needs to file an income tax return. The eligibility criteria for an individual or entity to file an income tax return vary based on their income sources, age, and any tax exemptions and deductions availed by them.

The following table shows the eligibility criteria to file an income tax return for individuals in India:

 Criteria :Eligibility:

There are two main factors to consider for income tax return eligibility in India:

  1. Income Thresholds:
  • Resident Individuals:
    • Below 60 years old: Must file if total income exceeds ₹ 2.5 lakh
    • Between 60 and 80 years old (Senior Citizens): Must file if total income exceeds ₹ 3 lakh
    • 80 years old and above (Super Senior Citizens): Must file if total income exceeds ₹ 5 lakh

2. Income Source and Type:

Even if your income falls below the thresholds mentioned above, you might still be required to file an income tax return if your income includes:

– Income from business or profession (even if below the threshold)
– Capital gains (short-term or long-term)
– Winnings from lottery, horse racing, or gambling
– Income from more than one house property
– TDS (Tax Deducted at Source) under section 194N of the Income Tax Act

There are also specific ITR forms with their own eligibility criteria. For instance, the simplest ITR-1 (Sahaj) can only be filed if your income meets certain limitations.

 Tax Deductions | Individual: Availed deductions under Section 80C to 80U

It’s important to note that the eligibility criteria for income tax return may change based on amendments to the Income Tax Act.so, If you have any queries you can contact us.

What are the benefits of Income Tax Return ?

Filing an income tax return comes with many benefits for individuals and entities in India. Some of the benefits are outlined in the following table.

Carry forward of losses :Losses incurred in a financial year can be carried forward to the next year, only if the income tax return is filed within the due date.

Quick processing of loans: Lenders require a copy of the income tax return to process loans, especially for individuals who are self-employed or business owners.

Avoiding penalty :Filing an income tax return helps individuals and entities avoid the penalty for non-filing or late filing of the income tax return.

Proof of income :Income tax return acts as proof of income for individuals, especially when applying for visas, loans or credit cards.

Claiming tax refunds :Filing an income tax return is necessary to claim refunds, if any tax is paid in excess of the actual tax liability.

What is the process of Income Tax Return ?

The process for filing an income tax return in India involves the following steps:

  1. Collecting necessary documents: Collect all relevant documents such as Form 16, Form 26AS, bank statements, and other documents required for filing the income tax return.
  2. Choosing the right ITR form: There are different ITR forms available depending on the sources and amounts of income earned. Choose the right ITR form as per your eligibility criteria.
  3. Filling in the details: Fill in the details such as personal information, income from all sources, tax deductions, and exemptions in the relevant fields of the ITR form.
  4. Verifying the details: Verify all the details provided in the ITR form before submitting it.
  5. Submitting the ITR form: The ITR form can be submitted online through the Income Tax Department’s e-filing portal or offline by submitting the form at the income tax office.
  6. Acknowledgement: After submitting the ITR form, the Income Tax Department issues an acknowledgment receipt.

7. Processing of ITR: The Income Tax Department verifies the details provided in the ITR form and processes the income tax return.

What are the required document for Income Tax Return?

The documents you’ll need to file your income tax return in India:

  1. PAN Card: It’s a mandatory document for filing taxes.
  2. Form 16: It’s issued by your employer and contains salary and tax details.
  3. Form 26AS: It’s a tax credit statement showing TDS and other taxes paid.
  4. Investment proofs: Provide evidence of investments in tax-saving schemes like PPF, NSC, and ELSS.
  5. Bank statements: Include statements showing interest earned on savings accounts and fixed deposits.
  6. Property documents: If you own properties, gather sale deed, purchase deed, and rental income details.

7. Capital gains statement: If you’ve sold assets like shares or mutual funds, provide a statement.

Make sure to have these documents accurate and ready to avoid any errors while filing your return.

Important Note: This is a general overview. Specific steps and requirements may vary depending on your situation and the chosen ITR form.

For detailed guidance and latest information, refer to the Income Tax Department website or you can contact us.

Why Choose Black Tie legal Services

We have a team of 100+ Professionals

Commitment of 100% Client Satisfaction

50,000+ Clients in PAN India