All About Income Tax Returns and Who Should File it

Now, your duty as a taxpayer doesn’t just end with paying your taxes on time. In fact, there are other requirements that you would have to comply with as well. One such requirement is the filing of Income Tax Returns (ITRs).

Failing to comply with income tax return filing despite paying all of your taxes on time can still lead to unnecessary troubles with the Income Tax Department, which can include exorbitant fines.

Coming to the concept of an Income Tax Return, it is essentially a statement containing all of the different incomes that you’ve earned during a financial year and the amount of tax that you’ve paid during the said year.

The Income Tax Return is supposed to be filed by you with the Income Tax Department each year within the due date, which is usually the 31st of July of every year.

Contrary to popular opinion, IT return filing need not be done by everyone. It is only mandatory if you satisfy the conditions laid out under the Income Tax Act, 1961. Let’s take a quick look at individuals for whom tax return filing is mandatory.

• If you’re an individual whose gross annual income exceeds Rs. 2.5 lakhs in a year, you should file your ITR.

• In the case of senior citizens (above 60 years of age) and super senior citizens (above 80 years of age), income tax return filing is mandatory if the gross annual income exceeds Rs. 3 lakhs and Rs. 5 lakhs in a year.

• Partnership firms and companies should also file an Income Tax Return each year, whether they make profits or losses.

• If you’re an individual who is a resident of India, but has assets outside India, you must file your income tax return.

• If you’re an individual who derives income from properties held under charitable trusts, research associations, political parties, news agencies, and educational institutions, among others, income tax filing is mandatory.

• If you’re an individual who is an authorised signatory for a foreign account, you need to file the relevant ITR.

• If you’re an individual who has paid excess taxes and wishes to obtain an income tax refund, ITR filing is a must.

• If you wish to carry forward losses of a particular year onto the next year, you need to file your income tax return on time.

The Income Tax Department has notified several different types of Income Tax Returns. And the type of return that you’re required to file is dependent on factors such as the kind of incomes that you generate and whether or not you’re an individual. Here’s a quick look at the various types of ITRs that can be filed.

Knowing how to file your ITR is extremely important since it eliminates the need to seek assistance from others. The process is quite simple and can be completed within a short period of time, provided you have all of the pertinent information with you. Check out a brief overview of the process down below.

• Visit the following link - https://eportal.incometax.gov.in/iec/foservices/#/login

• Register yourself on the income tax portal.

• Once you’re registered, log into your account using your user credentials.

• Hover over the ‘e-File’ option on the webpage and then the ‘Income Tax Returns’ option.

• Click on the ‘File Income Tax Return’ option.

• Select the assessment year for which you wish to file your return and the mode of filing - online or offline. Filing an ITR online is the easiest and fastest way to complete.

• If you’ve selected the online method, click on ‘Continue’ to proceed.

• Click on the ‘Start New Filing’ option.

• Select your status - Individual, HUF, or Others and click on ‘Continue’.

• Choose the ITR form that’s applicable to you and proceed.

• You will be asked a few questions, which you will have to answer.

• Once you’ve answered all of them, you will be taken to the ITR form applicable to you, where you can fill in all of the details of your income and taxes paid.

• After filling all of the information, submit the ITR form and proceed towards verification of the return.

• You can verify your returns through multiple different methods - through Aadhaar OTP, through an EVC, or by sending across a signed physical copy of your ITR to the Income Tax Department.

• Once you’ve verified your ITR, your Income Tax Return filing would now be complete.

With this, you must now be aware of how to file an ITR online. Don’t forget to file your return well within the given due date to avoid last minute stress and issues.

Also, keep in mind that you need to account for all of your tax saving investment options at the time of ITR filing. If you haven’t invested in any tax saving investment options, simply head over to Bajaj Markets. You can find a plethora of different options that can not only help you save tax, but also protect you and your family financially.