What is Income Tax Returns Filing ?

Income Tax Return (ITR) Filing in India is the process through which individuals, businesses, and other entities report their income, taxes paid, and claim deductions to determine their tax liability for the financial year (April 1 to March 31). Taxpayers need to file their ITR if their income exceeds the basic exemption limit or if they wish to claim a refund. The filing is done online through the Income Tax Department's e-filing portal, and various forms (e.g., ITR-1, ITR-2, ITR-4) are used based on the taxpayer's income sources. Filing ITR ensures compliance with tax laws and helps avoid penalties.

Benefits

Filing income tax returns offers several benefits, including eligibility for tax refunds if you've overpaid during the year, and the ability to claim various deductions and credits, potentially reducing your tax liability. It also serves as proof of income, which can be essential for securing loans, visas, or other financial services. Additionally, timely filing helps avoid penalties and legal issues, ensuring compliance with tax laws.

Process / Steps

01

Gather Documents

  • Collect Form 16 (salary), Form 26AS (TDS details), bank statements, receipts for deductions (e.g., 80C, 80D), and proof of other income.
02

Choose the Right Form

  • Select the appropriate ITR form (e.g., ITR-1, ITR-2, ITR-3) based on your income sources.
03

Determine Your Filing Status

  • Identify your tax status (individual, HUF, company) and applicable exemptions.
04

Calculate Your Income

  • Add up income from salary, business, capital gains, interest, and other sources.
05

Claim Deductions and Exemptions

  • Apply eligible deductions under sections like 80C, 80D, etc., to reduce taxable income.
06

Calculate Tax Liability

  • Use tax slabs to compute your final tax liability.
07

Fill Out the Form

  • Complete the chosen ITR form online with the required details.
08

Submit Your Return

  • File your return electronically through the Income Tax e-filing portal.
09

Pay Any Taxes Owed

  • If taxes are due, make the payment before the deadline to avoid penalties.
10

Track Your Refund

  • If expecting a refund, check its status on the e-filing portal.

Documents required

    PAN Card :
  • Permanent Account Number.
    • Aadhaar Card :
  • Proof of identity.
    • Form 16 :
  • Issued by the employer (if salaried).
    • Salary Slips :
  • For the financial year.
    • Bank Statements :
  • For interest income or any other financial transactions.
    • Investment Proofs :
  • Details of investments under Section 80C, 80D, etc. (e.g., PPF, insurance premiums, ELSS, etc.).
    • TDS Certificates :
  • For tax deducted at source (other than salary).
    • Form 26AS :
  • A consolidated tax statement.
    • Capital Gains Details :
  • For income from selling property, stocks, etc.
    • Rent Receipt / Lease Agreement :
  • For claiming house rent allowance (HRA).
    • Business Income Proof :
  • If applicable, including balance sheets and profit & loss statements.
    • Other Income Proof :
  • For income from sources like interest, dividends, etc.

Our Support?

SS AUDITORS can provide comprehensive support for filing income tax returns, including:

  • Tax Preparation : Assisting with the preparation and filing of your tax returns to ensure accuracy and compliance with tax laws.
  • Document Review : Reviewing all relevant financial documents to ensure that all income, deductions, and credits are properly accounted for.
  • Tax Planning : Offering strategies to minimise tax liability through effective planning and use of deductions, credits, and other tax-saving opportunities.
  • Compliance : Ensuring that your tax return complies with all applicable tax laws and regulations, reducing the risk of audits and penalties.
  • Representation :Representing you in case of audits or inquiries from tax authorities, providing expertise and support throughout the process.
  • Advisory Services : Providing advice on tax-related matters, such as changes in tax laws, tax implications of financial decisions, and optimization of tax benefits.
  • Record Keeping : Assisting in organizing and maintaining financial records and documentation required for accurate tax filing.
  • E-filing : Offering electronic filing services for faster and more secure submission of your tax return.
  • Issue Resolution : Helping to resolve any issues or discrepancies that arise during the tax filing process, including dealing with notices from tax authorities.

Frequently Asked Questions

An Income Tax Return (ITR) is a form used to file information about your income and tax to the Income Tax Department. The tax liability of an individual is calculated based on the income.

Every individual whose gross annual income exceeds the basic exemption limit must file an ITR. The limits vary based on age and category of taxpayer.

There are several types of ITR forms, such as ITR-1, ITR-2, ITR-3, etc., each catering to different types of income and taxpayers.

Common documents include PAN card, Aadhaar card, bank statements, Form 16, TDS certificates, interest certificates, and details of investments.

The deadline for filing Income Tax Returns (ITR) in India is:

  • For individuals (non-audit cases): July 31st.
  • For businesses (audit cases): September 30th.

Extensions may be granted by the government if needed.