Income tax is a tax imposed on taxpayers that varies with respect to their incomes. And it is collected by the Indian Government. Taxes in India can be categorized as direct taxes and indirect taxes.
Direct tax is the tax you pay on income directly to the government, whereas indirect tax is the goods and services tax that has recently introduced by the government to eliminate the complexities of the cascading taxes.
Everyone who earns or gets an income in India is subject to income tax. No matters, whether he/she is a resident or non-resident of India.
Each of these taxpayers is taxed differently as per their incomes. Whereas firms and Indian companies have a fixed rate of tax 30% of profits.
Is it mandatory to file an ITR?
Filing ITR returns is mandatory for individuals who are getting income.
So, the answer to this question is it mandatory to file the ITR is clear now. Whoever earns an income from their jobs has to file an ITR.
An income tax return is a legal document that implies your proof of income.
If you are not satisfying the eligibility criteria of the ITR and earning annual income, it may still a wise choice to file an ITR to do.
The returns can serve a proof of your income if you apply for a loan as a co-borrower. If you are thinking about the international trip, ITR can be helpful while applying for a visa.
Below we have mentioned some points which tell you who should file an income tax return?
People whose gross income is over the exemption limit for the year.
The limit is 2.5 lacs for those whose age is below 60 years and 3 lacs for those between age 60 and 80 years, and 5 lacs for those whose age is above 80 years.
- A resident who is assigning the authority in any account located outside India.
- A person who claims relief under section 90 A or deduction under 90 act.
- Individuals who don’t have taxable income should file ITR.
- As per the current assessment which is passed in the 2019-2020 budget, individuals who withdraw Rs. 1 Crore from the current bank account in a year, or spending more than Rs. 2 crores in foreign travel have to file ITR.
- Companies who gaining profits, facing loss, or generating zero income have to file an ITR.
- NRI’s whose income is greater than Rs. 2.5 lacs have to file an ITR.
In the event, if you avoid filing an ITR due to any reason, you are subjected to respective penalties.
What is required to file an ITR?
Are you looking for the procedure to file an ITR? You have come to the right place. Now, we are going to tell you the steps of filing an ITR. So, let’s get started.
Documents are required to file an ITR:
- PAN card
- Aadhaar Card
- Bank account details
- Form 16 (issued by the employer)
- Income tax e-filing profile (profile on ITR e-filing portal)
- Investment details (if any)
- Loan details (if any)
- The procedure of file ITR Online:
Before the introduction of the e-filing ITR website, it is very difficult to file an ITR.
Now, with the help of the internet, you can file an ITR from anywhere and any platform.
Now, we are going to tell you the procedure of filing ITR online- So, let’s get started.
- First and foremost download the ITR preparation software in your laptop or mobile.
- Start preparing return by using the software.
- Collect all the above-mentioned documents at the time of file ITR.
- Once you gather all the information, now login to e-filing with your username and password and date of birth.
- Navigate to the e-file section and tab on the return.
- Select the appropriate ITR, assessment year, XML file.
- Upload the digital signature and click on the submit button.
If the submission gets successful, ITR-V would be displayed. All you need is to do, just click on the link, the return filing process will be completed.
If the return is not submitted with DSC, the ITR-V form should be submitted to CPC within 120 days from the date of filing the ITR. Final Say:
We hope this guide on ITR filing will help you a lot. For any query regarding ITR filing, you can share at our comment section. We are readily available to response to your queries.