An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. This procedure of filing income tax returns is referred to as income tax return filing. While filing the actuals, the total amount that should go to the government as income tax is calculated. If you have paid more taxes, you can claim a refund, and if there is an additional liability above the tax already paid, you will have to pay the difference.
Income Tax department has provided ITR form from ITR-1 to ITR-7 for different categories of Taxpayers. The income tax law mandates the filing of return for those individuals who have a Gross Total Income exceeding Rs 2.5 lakhs (RS 3 lakhs for senior citizens and Rs 5 lakhs for super senior citizens) for any particular financial year. Further, certain taxpayers are required to file ITR irrespective of income.
ITR filing is an annual procedure and is required to be completed by all the taxpaying citizens of the country. It is possible for you to file income tax return online from the official portal of the Income Tax Department. At StartupSeven, we propose to offer hassle-free and on-time services at affordable prices for Income Tax return filing for FY 2019- 2020.
The Assessment order is issued by Income Tax department for each assessee who files the annual ITR. This assessment order is accepted as an address proof.
Income Tax return is considered as proof of income as it creates authentic financial history of the taxpayers. Lenders like banks and financial institutions use ITR to evaluate the borrowing capacity. Banks usually examine ITR of the past three to four years and consider the income mention in the income tax return to be your actual income.
Carry forward the losses means losses of current year can be set off with future profit. As per Income Tax Provisions, if you have business losses in particular year you can set off them in next assessment year with the profit. So, the tax liability will only be calculated on the income which is left after set off. Such business losses can be carried forward up to 8 years.
Filling income tax return is mandatory for assessee who exceed the maximum exemption limit as specified in the Finance Act as amended and for certain category of assessee.
Since ITR serves as proof of Income of an individual, ITR record is demanded by embassies of most of the countries for issuing VISA. It is advisable to file ITR in case VISA of foreign country is required.
Arrange and provide basic documents as per the list provided by us.
Pay the required fees.
We will submit ITR online/Offline through utility as the case may be.
Get acknowledgement of income tax return.
An Income tax return is a predefined format in which the taxpayer submits information about his income. Tax liability is calculated through this form. Several forms ranging from ITR-1 to ITR-7 are made available for the income tax department
An individual with income exceeding the minimum exemption limit are required to file an income tax return. Additionally, a business entity registered as a company or firm is also required to file ITR irrespective of income.
ITR Form 1 to Form 7 are available for a different type of entities and for a different type of income.
Filing ITR offers a host of benefits, some of them are given below:
If return is not filed within due date it will be called belated return Following is the due date of filing ITRCategory Due date of filing
Individual who are not required to be audited 31 July
Company or Individual whose accounts are required to be audited 30 September
Assesse required to furnish report u/s 92 E 30 November
Penalty U/s 234F
If income upto 5 Lac
Late Fees- 1000
In Income is more than 5 Lac and ITR is filed Upto 31 December Late Fees-5000
In Income is more than 5 Lac and ITR is filed After 31 December and upto 31 March Late Fees-10000
Individual HUF and partnership firm can opt for presumptive scheme. The presumptive scheme is basically for the small taxpayer. Limit for professional and business is defined separately under Sec 44ADA and 44AD. Businesses whose gross receipt is up to 2 crores can pay tax on 8% or 6% of the gross receipts as the case may be.
For professional covered under Section 44ADA having gross receipts up to Rs 50 lakhs can choose presumptive scheme. Income chargeable to tax will be 50% of gross receipts.
Followings are the benefits of opting Presumptive scheme
26AS is a consolidated statement which shows details of TDS/TCS deducted and deposited deductor wise. Before making any claim of TDS or TCS in the income tax return, details must be cross verified from 26 AS. It also contains details of advance tax or self-assessment tax paid.
Financial year is the year in which an income is earned, and the assessment year is the year following the financial year in which evaluation of income is done.
A refund can be claimed by filing ITR. A person can claim the refund of tax which deducted in excess of actual tax liability. Particular of tax credit must be matched with 26 AS.
Best judgement assessment could be carried out by an assessing office on the basis of relevant material with their disposal. Such a situation may arise in case of non-filing of the income tax return.
Bhanu is a person to count upon, with his expertise in his domain and knowledge he brings on you can reach him with a problem any time. His appetite to listen and understand the issue makes him the man for the job. He is proactive, energetic and a resourceful guy. My best wishes to Bhanu and Startup seven for future endeavour.
Founder at Addensure Media LLP
Startup Seven is perfect to partner with in your startup or corporate journey. Seamless service and support provided by team is really helpful specially when you are trying to setup your venture. I would like recommend Startup Seven to every startup.
Founder Onmytap - NETWORK FOR PROFESSIONAL GROWTH
Bhanu is one of the most sincere and trustworthy person I have come across. He is extremely ethical and is completely customer focused. His hard work and dedication is commendable and with him handling the legal as well as taxation things are always in order and compliant. Keep up the good work Bhanu. Wishing you more and more success as you grow.
Co-founder, Executive - Brightsandz Clean Tech Pvt Ltd