It is mandatory to file the Income Tax Return online for all the registered taxpayers.

Simply, an Income Tax return or ITR is a form used to declare your gross taxable income for a given financial year. It comprises income from all sources and dictates the income tax slab that you qualify for. ITR also helps you claim deductions and thereby determines your annual tax liability.

Income Tax Return is called return, as it contains all the details of your income that you earned for the relevant Financial year.

Income Tax Return (ITR) is a form through which you report the details of your income earned from various sources and thereon pay taxes to the Income Tax Department.

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.

ITR contains all the details of incomes and tax-saving investments done by an individual in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax Return (Forms are relevant for individuals, companies, firms, etc.).

The Income Tax Act 1961, obligates certain eligible persons to file their income tax returns once a year. Filing of Income Tax Return legitimize your earnings and investments whereas non-filing means that you have not disclosed your eligible income which is required to be disclosed as per law, which becomes your Black Money. Also, by filing your Income Tax Return you can get an income tax refund, if you have paid excessive taxes to the government. Further, your Income Tax Return plays a crucial role in the time of applying for loans, credit cards, etc.

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 your electricity bill exceeds Rs. 1 lakh for a single bill or in totality for the financial year.

If you have deposited Rs. 1 crore in your current accounts maintained with a bank or cooperative bank.

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.

If you are an ordinarily resident individual with income from foreign countries AND/OR assets in foreign countries AND/OR have signing authority for any account outside the country.

If you have spent Rs. 2 lakh on yourself/others for travel to a foreign country.

Tax is levied on your income once it surpasses a certain level. To pay the taxes, you have to file an Income Tax Return.

1. It Acts as a Legal Document

Income Tax Return holds immense legal value. It is recorded with the government. It acts as legal proof in two ways,

2. Income Proof

Thus, ITR can also be used as income proof as some transactions such as the purchase of property do require you to show proof of income.

This can come in handy for the ones who are self-employed and don't receive Form 16.

3. Avoid tax notices

Taxpayers are served notices from the IT Department if they fail to file the returns timely.

4. Claim Refund of TDS

If TDS has been deducted on your income by any person, you should timely file your return so that refund of excess TDS deducted may be claimed.

5. Helps in faster loan processing

ITR filed with Government indicates financial worth of the taxpayer. Before lending money, all banks and financial institutions ask for copies of IT Return to track the repayment capacity of borrower

6. Avoid late fees under section 234F

If any person is liable to file his IT Return but fails to file it timely, he may be liable for maximum penalty up to Rs. 10,000 depending upon total income and quantum of delay

7. Quick Visa Processing

Most embassies and consulates require to submit IT Returns for last 3 years for visa processing

When you decide to apply for a loan to purchase something, say a car or a new home for your family or for business, the bank requires you to submit some documents such as

Aadhar card
PAN Card
Bank ACCOUNT Statements
Home Loan Statements
Form 16
Form 26AS
Rental Income details
Agricultural Income
Children Fees details
LIC Details
Tax Saving Instruments
Foreign Income
Dividend Income
Every type of Income & expenses details

Send us the document online and we will file Income Tax Return.

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