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 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 refund and if it short paid need to clear the liability.Income Tax has provided ITR form from ITR-1 to ITR-7 for different category of Taxpayers.The income tax law mandates 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.Futher certain category of taxpayer are required to file ITR irrespective of Income.
The Assessment order is issued by Income Tax department for each assessee who file the return.This assessment order is accepeted as an address proof.
Income Tax return is considered as proof of income.ITR creates financial history of taxpayer.Lenders like bank and financial institution use ITR as tool to calculate repaying capacity of borrower.ITR is demanded for any kind of borrowing from banks.Normally bank asks for 3-4 year ITR.Banks consider only normal Income which is shown in ITR.Abnormal Income or one time income is not considered in calculation of repaying capacity.
Carry forward the losses means losses of current year can 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.Business Loss can be carried forward to 8 years.
Income Tax return to be Mandatory be filed if Income exceed maximum exemption limit as per Finance act as amended and for certain category of assessee.
Non-Filing of the Income Tax Return may result in the Best Judgement Assessment. This is an assessment carried out as per the best judgment of the Assessing Officer on the basis of all relevant material he has gathered.
Since ITR serves as proof of Income of an individual, ITR for 3-4 years is demanded by embassies of most of the countries for issue of 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
Make the payment of fees
Initiate Process-We will submit ITR online/Offline through utility as the case may be
Get Acknowledgemet of Income Tax return
An Income tax return is a predefined format in which taxpayer submit information about his income. Tax liability is calculated through this form. There are various type of form available by income tax department from ITR-1 to ITR-7.
Individual having Income exceeding minimum exemption limit are required to file Income Tax Return. Apart from this Company and firm is required to file ITR irrespective of Income.
ITR Form 1 to 7 are available for different type of entities and for 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. Presumptive scheme is basically for small taxpayer. Limit for professional and business is defined separately under Sec 44ADA and 44AD . For 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 upto 50 Lac 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 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 assessment year is the year following financial year in which evaluation of income is done.
Refund can be claimed by filing ITR .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.
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