Income Tax Return Online
Income–tax return (ITR) is a statement of income and tax thereon, which is to be furnished by a taxpayer to the Income-tax Department in prescribed form.
Income Tax Filing Chennai
Income tax return (ITR) is a statement of income and tax thereon, which is to be furnished by a taxpayer to the Income tax Department in prescribed form. Every year different forms of returns of income are prescribed by the Income-tax Department for different taxpayers having different income from different sources. Income Tax Return is the
form in which assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses. We have two types of taxes in India – Direct Tax and Indirect tax.
Direct Tax is a tax that is calculated directly on your Income e.g. tax on salary etc. Income tax is a Direct Tax.
Indirect Tax is a tax that is indirectly charged. And is put on goods or services. So if you are purchasing a mobile phone or a new suit. Most indirect taxes have now come under Goods and Services Tax (GST).
Income Tax (Direct Tax)
Anyone earning an income above a certain amount is subject to income tax. The income could be from salary, rent, and interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are decided at the start of the financial year in the Union Budget (in the Parliament of India). The tax paid on these incomes is called the income tax.
Income Tax Return
It is simply a Form to be filed with the Income Tax Department. A Form to be filed as a statement of income earned. It is arranged in such a way that calculating tax liability, scheduling tax payments or requesting refunds for the overpayment of taxes has been made convenient for the taxpayers. They must, first, determine the type of Income Tax Return (ITR) Form they need to fill before actually filing their Returns. Which Form is to be filled, depends on the income that the taxpayer earns. Its purpose is to report our income and taxes paid thereon to the government.
What is Form 16?
| 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 – Persons 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. |
What is Form 16?
Form 16 can be termed as Salary TDS (Tax Deducted at Source) Certificate that an employer issue to you for the TDS deducted. Form 16 is an Income tax form, used by the companies to provide their salaried employee’s information on the tax deducted.
As soon as the income from your salary for the financial year exceeds the basic exemption limit, the employer is required to deduct TDS. The deducted amount is to be deposited to the Government.
After deducting TDS from the salary, the employer is required to give a certificate to the employee consisting of the details. This certificate is known as Form 16.
It consists of two parts i.e. Part A and Part B. Part A consists of details about the employer & employee, name and address, PAN and TAN details, TDS deducted & deposited, etc. And Part B consists of details related to other income, deductions allowed, etc.
- If no TDS has been deducted, you may not be issued Form-16.
- The employees need this at the time of filing for tax returns.
- You can directly upload your Form 16 and file your income tax return quickly.
Advantages of Tax Filing
If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of loan would depend on your income. This can be established through filed ITRs. ITR will help your lender to assess your repayment capacity.
If you plan to travel overseas, proof of earning is required. If you are salaried then a certificate from the employer will work. But if you are self-employed then income proof & details need to be submitted.
There could be some TDS cut on some investment. And you will have to file the ITR to claim a refund of the same. Or you may have paid excess tax on your income. To get this refund, you must file ITR.
Many salaried individuals don’t file ITR as they think that the tax on their income has already been deducted and they have Form 16. But your employer may have paid more tax on your behalf. Not taking into consideration your actual house rent, children’s school fees, tax-saving investments or insurances. So, the filing of ITR will enable you to get a refund from the IT department.
As per Income tax rules, losses are allowed to be carried forward and set off against capital gains. But this applies only to those individuals who file ITR in the relevant assessment year. If you have incurred losses for a year and you have earned below the exemption limit. You must file your returns to be able to carry forward the losses you have incurred. And it gets balanced against future gains and income.
The capital losses can be carried forward for 8 consecutive years, as per the IT Act.
Although the Motor Vehicles Act does not make it compulsory to present the ITR while calculating the compensation in case of accidental death or disability, the procedures approved by Delhi High Court mention the need for ITR for self-employed persons.
This helps to establish the income of the person to arrive at appropriate compensation.
Businessmen, consultants, and partners do not get any Form 16. For such self-employed individuals, ITR receipts become an important document. ITR is the only proof of income and tax payment for them, in all sorts of financial transactions. And if they want to take up some contract or tender, they may be asked to show their tax return receipts of the previous 3 to 5 years.
Staying on the right side of law helps. Similarly, keeping the income tax department informed about your income and taxability helps too. This is only possible when you file your ITR. Those who earn less than the prescribed slab of income can file returns voluntarily. Filing returns are a sign that you are a responsible taxpayer.
Frequently Asked Questions
Who needs to pay Income Tax?
1. Individual – Salaried, Self-employed or Professional,
2. Hindu Undivided Family (HUF)
3. Company
4. Firm
5. Association of Persons (AOP)
6. Local Authority
7. Artificial Juridical Person
8. Body of Individuals (BOI)
9. Political Party,
10. Educational or medical institution,
11. Trade Union, etc.
Do I need to pay income tax?
(a)Earn gross annual income (before deductions u/s 80C to 80U) more than-
1. Rs. 2.5 Lakhs – For individuals below 60 years,
2. Rs. 3 Lakhs – For individuals above 60 years but below 80 years,
3. Rs. 5 Lakhs – For individuals above 80 years,
(b) Earn income other than salary like house property, etc.,
(c) Want to claim an income tax refund of taxes already paid. Such as TDS, Advance Tax, etc.,
(d) Earn from or have invested in foreign assets,
(e) Looking to apply for visa or loan applications,
(f) Company or a firm, irrespective of profit or loss,
(g) Having Bank Deposits of over Rs. 1 crore,
(h) Bought foreign exchange of more than Rs. 2 lakh,
(i) Paid an electricity bill of more than Rs. 1 lakh.
What documents are to be attached with Income Tax Return?
When you don’t get Form-16, given below is a list of documents that you may have:
(a) Copy of the previous year’s tax return (to declare any losses or other details),
(b) Your Bank statements (for the interest paid to your loans, balances, etc.),
(c) Your TDS certificates (to include taxes that have already been paid),
(d) Your Savings Certificates, Deductions, Donations, etc. (to include deductions),
(e) Certificates of Disability in your family (for deductions),
(f) An Interest statement that shows the interest paid to you, (possibly from Bank and/or Post Office),
(f) If having business income/loss, have balance sheets, Profit & Loss account statements, and other requisite Audit Reports.
What is Financial Year, Previous Year, and Assessment Year?
How to select a name of the company?
- It should be unique
- There should be no trademark registered of the given name
- It should have a prefix and activity word
- It should not have words like finance, minister etc
- For words like Global, Corporation, World the capital should be more that 25 lakhs
How to pay income tax to the government?
When are income tax returns to be filed?
It is important to file Income Tax Returns within the stipulated time.
Can I claim the deductions missed out in Form 16 issued by my employer?
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