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Income Tax Return (ITR) Filing - An Overview

An income tax return, or ITR, as it is commonly called, is a document filed by a taxpayer with the Income Tax Department of India. ITR reflects your contribution directly to public services and infrastructure. This contains all the information you need about your income sources, deductions & exemptions, tax liabilities, and filing information.

e-filing of income tax returns is mandatory for registered companies, individuals, HUFs, or other professionals. Based on the type of taxpayer, there are multiple income tax return forms filed. Every taxpayer should complete their ITR filing within the deadline to avoid penalties.

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"Act: The Income Tax Act, 1961 (India)"

Advantages of Income Tax Returns (ITR ) Filing

Filing income tax returns offers multiple advantages for a citizen. Here are the top 5 advantages of filing an income tax return in India.

Easy to Claim Tax Refunds

If a taxpayer earns less than ₹5 lakh in a year, they can claim tax refunds that are deducted from their income. It is crucial to file IT returns online by 31 July of every year.

Avoid Legal Consequences

Not filing your income tax returns online in India may result in penalties and legal consequences. The income tax authority may send a notice that carries hefty fines and penalties. It is essential to prevent it by submitting ITR returns on schedule.

Effective for Easy Loan Processing

While applying for a loan or a visa, you should provide your last three years of ITR filing. Submitting the tax returns increases credibility and can help lenders assess your financial status.

ITR Returns Can Act as a Verified Income Statement

Freelancers or other self-employed individuals who don't have an official income statement can use their ITR returns to verify their income.

Documents Required to File Income Tax Return File

Along with other forms, the following documents should be provided to file your income tax returns online:

  • PAN Card
  • Aadhar Card 
  • Form 16
  • Form 16A
  • Form 16b
  • Form 16c
  • Bank account details
  • Investment details 
  • Bank statement or passbook
  • Home loan statement 
  • Details of capital gains
  • Details of Rental income
  • Details of foreign income
  • Details of dividend income
  • Investments in tax saving instruments
  • Life insurance receipts
  • PPF receipt
  • Donation receipts
  • Details regarding equity or mutual funds
  • Eligibility Criteria for Income Tax Returns (ITR ) Filing

    Individuals or companies that fall under the following criteria should file IT returns in India: 

    • Salaried individuals whose gross income exceeds the threshold level before considering deductions under Section 80c and Section 80u should file ITR returns
    • Entities like private limited companies and limited liability partnerships, irrespective of profit or loss, should file ITR returns
    • Individual directors or partners holding positions in private limited companies or limited liability partnerships should file income tax returns online
    • Individuals earning dividends from multiple sources like mutual funds, equity, fixed deposits, interests, and bonds should file their ITR online
    • Individuals sourcing income from charity, religious trust, or other forms of voluntary contributions should file IT returns
    • Businesses and individuals who are eligible for tax refunds should definitely file their income tax returns online 
    • Non-resident Indians should file an income tax return based on their incomes.

    Checklist for Income Tax Returns (ITR ) Filing

    Here is a detailed checklist for filing ITR returns

    • Make sure to have all your personal information, like your name, address, contact details, and PAN
    • Find out the appropriate income tax return forms 
    • Select the proper forms and collect all the income details
    • Keep proofs of all the deductions and exemptions
    • Take note of the information on TDS returns, capital gains, and foreign assets and incomes
    • In the case of a firm or registered company, make sure to have all the financial statements, audit reports, TDS compliances, and other related party transactions.
    • Have proof of all the annual compliances in hand.

    FAQs on Filing ITR online

    Who is eligible for ITR filing?

    Individuals, Hindu Undivided Families (HUFs), businesses, and others who meet the Income Tax Department’s income requirements are all eligible to file an ITR.

    How to file an income tax e-filing online?

    You can opt for hassle free income tax e-filing online with our tax experts at Vakilsearch.

    What is e-filing in income tax?

    ‘E-filing’ is the procedure of electronically filing income tax returns online through the website of the Income Tax Department.

    How can I claim an income tax return?

    Make an accurate tax return claim by including all allowed deductions and exemptions, and by attaching the required supporting documentation.

    Can I file ITR without Form 16?

    Yes, you can file ITR without Form 16. You can use other documents like salary slips, bank statements, and investment proofs for accurate reporting.

    Can I file my ITR myself?

    Yes, individuals can file their ITR themselves using online platforms. However it’s highly recommended to get in touch with Tax experts to avoid errors.

    How can I check my income tax online?

    Check your income tax online using the income tax departments filing portal. Log into the Income Tax Department’s e-filing portal > Select ‘View Returns/Forms’ section > You can check the status.