What is Income Tax Return (ITR)?

In the country like India the tax law is governed under the government, the government has the authority to impose the taxable amount on the income of the persons who are, LLP, Firm, Companies, individuals, the Hindu undivided family, local authorities etc. there are certain rules that are being made for those mentioned above where the government levy of tax as per his/her residential status and income.

What is an Income tax Return?

ITR or The Income Tax Return is formed that is used to provide information about the income of the person who is filing the ITR to the Income Tax Department, the amount of tax to be paid is decided or calculated based on the income, and if the extra tax is deducted or paid then the taxpayer gets the refund from the income tax department. The return must be filed each year by the person or individual. This ITR has to be filed before the date which is specified by the authority or else and if fails to pay till the prescribed date then the penalty is imposed on the taxpayer.

As there are laws in India that it is compulsory to file ITR,  if the income is more than the basic limit, the paying or filing of ITR late not only impose the penalty, but also the chances of getting a loan from the bank get reduced and also may obstruct in getting VISA for travel purposes.

The tax laws in India had made it mandatory to file an income tax return, if the income is beyond the exemption limit, there are certain income brackets that are made if any individual or business falls under those brackets then it is compulsory for those to file ITR. 

Types of ITR forms

There are different types of ITR form and those are the following:-

ITR 1: If any individual who earns income through his salary or pension or income from the other sources such as properties than those individuals need to fill this particular ITR 1 FORM.

ITR 2: If the annual income of the person exceeds 5 lakh from salary, house, property, or any other sources, then this form is filled and this form is not used in business earnings.

ITR 3: This form is filled when the individual earns from the business, this form is not for the person who earns from his salary, pension, or any other income source.

ITR 4: When any person chooses the presumptive income scheme then this form is used and needs to be filled by the person filing ITR.

ITR 5: This form is filled by the LLP’s, Association and Body of Individuals

ITR 6: This form is filled when the income is from the property that is in use for the charitable purpose or any religious purpose.

E-Filing of ITR

Electronic filing: when the tax filing is done through the medium of internet this process is called e-filing, through this process a taxpayer can file ITR from home at his own convenience and at any time.

An individual can enjoy the benefits in certain ways:

1. It helps in claiming refund from the TDS therefore the person need to file ITR for the same
2. Easy in the verification process of the document 
3. The documents related to Income Tax Return are also the income proof of the individuals.

To file the Income tax return a person can directly or easily fill the ITR online with the help of computer and internet, the person can download the form that is known as SAHAJ from the official website of the income tax department the person can also take help from the professional in filing the ITR online, once the filing is complete the ITR 5 FORM will be generated and this further need to be verified within 20 days of filing of the return.

How can Lead India help?

The team of Lead India has the best experts and professionals who will guide you step by step in filing ITR and help you in handling the website and document verification process.