ITR Filing

ITR Filing

Income Tax Return

Filing an Income Tax Return (ITR) is the process of submitting a form to the tax authorities, detailing your income, expenses, and any taxes paid over the previous year. This process helps the government assess how much tax you owe or if you have paid too much and are due for a refund.

Purpose of Filing ITR

  1. Legal Obligation: It's a statutory requirement under the Income Tax Act, 1961.
  2. Proof of Income: Acts as proof of income for various purposes like applying for loans or visas.
  3. Claiming Refunds: Helps in claiming refunds of excess taxes paid.
  4. Loss Carry Forward: Allows you to carry forward losses to subsequent years, which can be set off against future income.
  5. Avoid Penalties: Non-filing or incorrect filing can lead to penalties and interest charges.

Who Should File ITR?

  1. Individuals and HUFs:
    • Below 60 years with income above ₹2.5 lakhs.
    • Between 60-80 years with income above ₹3 lakhs.
    • Above 80 years with income above ₹5 lakhs.
  2. Companies and Firms: Regardless of income, all companies and firms need to file ITR.
  3. Others: Trusts, LLPs, AOPs, BOIs, etc.

Types of ITR Forms

  1. ITR-1 (SAHAJ): For individuals with income up to ₹50 lakhs from salary, one house property, and other sources (interest, etc.).
  2. ITR-2: For individuals and HUFs not having income from business or profession.
  3. ITR-3: For individuals and HUFs having income from business or profession.
  4. ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession.
  5. ITR-5: For persons other than individual, HUF, company, and person filing ITR-7.
  6. ITR-6: For companies other than those claiming exemption under section 11.
  7. ITR-7: For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).

Documents Required

  1. PAN Card: Permanent Account Number is mandatory.
  2. Form 16: Issued by the employer, showing salary details and TDS.
  3. Form 26AS: Summary of taxes deducted and paid.
  4. Bank Statements: For details of interest income and other transactions.
  5. Investment Proofs: For claiming deductions under sections like 80C, 80D, etc.
  6. Loan Statements: For claiming deductions on home loan interest.
  7. Other Income Proofs: Such as rent receipts, dividend income, etc.

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