ITR Filling
Who should file an income tax return?
Anyone who's significantly less than sixty decades old and it has a yearly income greater than Rs 2.5 lakh needs to file an income tax return, as stated by the Tax Act. For older citizens, the basic slab is Rs 3 lakh, also for people somewhat more than eighty years older, of the cut off is Rs 5 lakh.
Reasons why to File Income Tax Returns by Individual taxpayers?
There are a lot of reasons as to the filing of returns by the taxpayers.Some significant benefits that accrue to individual taxpayers in filing IT returns are:
1. Getting Loans and Credit Cards approved
For getting various loans like Housing Loans, Vehicle Loans, Business, personal loans and credit card approvals, copy of ITR is mandatory part without which you can face hurdles in getting such loans approved smoothly.
2. Quick Visa Approvals
For visa approvals, it is mandatorily required by the Immigration department to produce the proof of Income tax returns along with scrutiny of other essential documents.
3. To Claim Income Tax Refunds and Business Losses
Any income tax-related refunds and losses in the business can only be claimed from the IT department when a taxpayer duly files a return. It is equally required to carry forward the previous year losses as well.
4. Avoiding Penalties and Prosecution
There are punitive provisions in the income tax act in the form of fines, penalties and prosecution if a taxpayer fails to file the return of income when he is required to file as per the law. It is advisable to file these returns either of your own or by hiring someone who can do this for you.
Required Documents for ITR Filing.
- Aadhaar Number
- PAN Card
- Income Tax Login credentials
- Bank Statement
- Investment proof for claiming deductions
- TDS certificates (Form 16 or 16A)
- Records of Sale or Purchase of Assets/Investments
- Proof of payment of insurance premium, PPF, purchase of NSCs, Mutual funds, donations etc
Types of ITR
There are up to 8 types of Income Tax Return Forms, currently. We have divided them into 2 parts:
| ITR Forms for Individuals | ITR Forms for Non-Individuals |
|---|---|
| ITR – 1 (Sahaj) – For individuals earning income from salaries, one house property, interest income, agriculture, other sources, etc. | ITR – 5 – Entities other than,- (i) individual, (ii) HUF, (iii) company, and (iv) person filing Form ITR-7 |
| ITR – 2 – For Individuals and HUFs having income other than from profits and gains of business or profession. It may be from capital gain, lottery or foreign assets, etc. | ITR – 6 – All companies except those that claim tax exemption as per Section 11. |
| ITR – 3 – For individuals and HUF with income from profits of a business or profession. | ITR – 7 – Person incl. companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only. |
| ITR – 4 (Sugam) – For Individuals, HUFs, and Firms (other than LLP) having presumptive business income tax returns. This is computed under sections 44AD, 44ADA, or 44AE. |
Comparison of Tax Rates Under New Tax Regime & Old Tax Regime
| Old Tax Regime (FY 2022-23 and FY 2023-24) | New Tax Regime | ||||
|---|---|---|---|---|---|
| Income Slabs | Age < 60 years & NRIs | Age of 60 Years to 80 years | Age above 80 Years | FY 2022-23 | FY 2023-24 |
| Up to ₹2,50,000 | NIL | NIL | NIL | NIL | NIL |
| ₹2,50,001 - ₹3,00,000 | 5% | NIL | NIL | NIL | NIL |
| ₹3,00,001 - ₹5,00,000 | 5% | 5% | NIL | 5% | 5% |
| ₹5,00,001 - ₹6,00,000 | 20% | 20% | 20% | 10% | 5% |
| ₹6,00,001 - ₹7,50,000 | 20% | 20% | 20% | 10% | 10% |
| ₹7,50,001 - ₹9,00,000 | 20% | 20% | 20% | 15% | 10% |
| ₹9,00,001 - ₹10,00,000 | 20% | 20% | 20% | 15% | 15% |
| ₹10,00,001 - ₹12,00,000 | 30% | 30% | 30% | 20% | 15% |
| ₹12,00,001 - ₹12,50,000 | 30% | 30% | 30% | 20% | 20% |
| ₹12,50,001 - ₹15,00,000 | 30% | 30% | 30% | 25% | 20% |
| ₹15,00,000 and above | 30% | 30% | 30% | 30% | 30% |
FAQ
Income Tax Return is the form in which assesses files information about his/her Income and tax thereon to Income Tax Department. The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assesses. Only those Forms which are filed by the eligible Assesses are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessed and the category of the Assessed.
Yes, if any TDS is deducted, the person should file an income tax return. It is also beneficial to file ITR if a taxpayer wants to claim a refund. Despite TDS deduction, if a person does not file ITR, the chances of getting notice from the department arise.
A taxpayer can pay the income tax in challan 280 self-assessment tax through net banking.
An income tax return can be filed up to one year from the end of the relevant financial year. For example, the return of F.Y 2019-20 can be filed up to 31.03.2021.
An Electronic Verification Code (EVC) is a code which is sent to the registered mobile number of the tax filer while filing his/her returns online. It helps to verify the identity of the tax filers. An EVC can be generated through the e-filing portal of Income Tax Department.
After successfully e-verification of ITR, a taxpayer is not required to send physical ITR-V to Bangalore for further processing. Your ITR can be verified electronically through any of the following means:
No, taxpayers are not required to attach such documents while filing an income tax return. However, it should be kept carefully by the taxpayers so that it can be provided to the department if required in case of scrutiny or any assessments.