Individuals, NRIs, partnership firms, LLPs, corporations, and trusts must file income tax returns each year. Do you need to file an income tax return, GSTR, or TDS return? We provide hassle-free Income Tax Return filling and TDS return services. We file on all matters pertaining to TDS return/ROC filing compliance at the lowest possible cost and in the shortest amount of time.
If the total gross income is greater than the basic exemption limit, income tax returns must be filed. For the fiscal year ending March 31, 2019, the basic exemption is Rs. 2.5 lakhs for an ordinary individual, Rs. 3 lakhs for an individual over 60 years, and Rs. 5 lakhs for an individual over 80 years.
The total income chargeable to tax is computed after gathering all required documents and verifying all taxes deducted from the income. The term gross total income does not refer to the income used to calculate your tax liability. The gross total income is the income before any deductions under Sections 80 C, 80 CCC, 80 CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80G and 80 GGA, 80U, and 80 TTA are taken into account.
If you are required to file a return as discussed above, the deadline is July 31. Individual taxpayers are generally subject to the due date. However, if you run a business and your accounts need to be audited, the deadline is extended until September 30th. Even for people who work as partners in partnership firms and have their accounts audited, the deadline is September 30th.
The Income Tax Department has notified various ITR forms for different Taxpayers who are based on the source of Income of different taxpayers. This is done in order to create a simple tax structure in our country. Based on the source of Income, a taxpayer chooses ITR form and file his/her return. The return is required to be filed every year subsequent to the year of Income. Now the details of PAN and Aadhaar card is mandatorily required to be furnished with the department while filing the ITR return. There are various forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 which is required to be filed by the different Taxpayer. However, it is to be noted that it is not mandatory to file the return by all taxpayers, this is only the certain individual having threshold income more than as prescribed under the Income Tax Act who are required to submit the Income-tax return. The return must be filed before the due date in order to avoid late fees and penalties. Further, aforesaid forms are designed for different taxpayers and it shall be processed by the income tax department accordingly.
ITR Form 1 is a small and simple form for individuals who are having Income upto Rs. 50 lakh through below sources of Income ie., from:1. Salary/Pension
A Taxpayer who is deriving their Income from sources except for form “Profits and Gains from Business or Profession. Hence, one can say that Taxpayer who is earning Income from the following source is required to file ITR Form 2.
A taxpayer who is deriving their Income from “Profits and Gains from Business or Profession. Hence, one can say that a Taxpayer who is earning Income from the following source is required to file ITR Form 3.
ITR Form 4 is to be filed by individuals or HUFs or Partnership Firm whose total Income includes:1. All business income computed in accordance with provisions of Sections 44AD and Section 44AE of the Income Tax Act.
The ITR FORM 5 is design for Taxpayer as shown below
As discussed above, every company which has not claimed any exemption as provided under Section 11 of the Income Tax Act, 1961 can file the ITR Form 6. Hence we can say that if you are a company and has not claimed exemption as provided under the provisions of the Act. It is interesting to notice that the ITR Form 6 do not have any annexure means it is an annexure less form. There is no requirement of any attachment while filling and filing the ITR Form 6.
The ITR Form-7 is to be filed by all taxpayers which includes a Company, any firms, AOP, and also other organizations that falls under the Section 139 (4A), Section 139 (4B), Section 139 (4C) and Section 139 (4D).
Section 139 (4A) of the Income Tax Act, 1961 provides for aforesaid Taxpayers which are getting their Income from any properties involved in religious or charitable purposes.
Section 139 (4B) of the Income Tax Act, 1961 provides for aforesaid Taxpayers which is a Political party. As we know that Political parties are exempted from any levy of tax as provided under Section 13A of the Income Tax Act, 1961 however, it is applicable only if Political party filed the Income tax return in ITR Form-7.
Section 139(4C) specifies following Taxpayers who required to file ITR Form-7.
Section 139(4D) provides for educational institutions which are not covered above shall file ITR Form 7.
What are the benefits of filing an income tax return?Filing an income tax return helps an individual in several ways such as: 1. Processing of loans. Banks or other financial institutions ask for the previous year’s income statements as proof before granting loans. This is mainly to check whether the borrower has the ability to return the loan or not. An ITR works as an income statement. 2. Claiming refunds. A taxpayer can claim a refund of any excess liability paid or deducted by filing an ITR. Visa processing. While applying for a visa to travel outside India, an ITR acts as an important document. All embassies ask for the applicant’s income proof and tax compliances to ensure that he or she is capable of bearing the travel expenses outside India 3. Claiming deductions and exemptions. The income tax department offers various deductions and exemptions, specified under the income tax act, from the income of an individual. Filing an ITR can help the taxpayer claim those deductions and reduce his tax burden. 5. Availing presumptive taxation schemes. Income tax laws provide various presumptive taxation schemes to taxpayers. Under this, specified taxpayers can enjoy the benefit of reduced tax rates applicable on their income.
How to file an income tax return?
A taxpayer can file an income tax return, regardless of the amount of income (a nil return can also be filed), through the official website of the income tax department, i.e.,incometax.gov.in. The income tax department of India has provided the facility of electronic filing of income tax returns to all taxpayers and the step by step process for that is as follows:
Step 1: Calculate taxpayer’s income and tax liability paid after taking into consideration all the deductions and exemptions prescribed under the income tax act. Pay any balance tax payable calculated as per self assessment.
Step 2: Verify the details of taxpayer’s tax deducted at source, tax collected at source and advance tax paid during the year with the help of Form 26AS downloaded online from TRACES
Step 3: Visit the official website of income tax department of India and login with the taxpayer’s valid username and password. If the taxpayer is a new assessee then click on the register option instead of login to register the taxpayer on the website
Step 4: Go onto the File income tax return option under e-filing tab
Step 5: After this choose the category of assessee that the taxpayer fall in i.e., individual, HUF, company, firm or any other
Step 6: Select the ITR form applicable to the taxpayer according to his income
Step 7: After this, verify the pre-filled bank account and ITR details. You can make the changes if required.
Step 8: If all the details provided on the portal are correct then confirm the same and validate it.
Step 9: Once you have validated the ITR details on the portal the process will be completed.
Step 10: Then at the last step verify the income tax return and file its copy to the income tax department
The documents needed for the GST Registration Online in India differs depending on the type of business. Below is the list of documents needed:Proprietorship