IT Return

Filing an Income Tax Return (ITR) is an essential process for individuals and entities to report their income, calculate tax liability, and pay taxes to the government. Here’s an overview of the IT return process:

1. Types of Income Tax Returns (ITRs):

• ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (excluding lottery and racehorse income), and total income up to ₹50 lakh.
• ITR-2: For individuals and HUFs (Hindu Undivided Families) not having income from business or profession.
• ITR-3: For individuals and HUFs having income from business or profession.
• ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession.
• ITR-5: For LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), and artificial juridical persons.
• ITR-6: For companies other than companies claiming exemption under section 11 (income from property held for charitable or religious purposes).
• ITR-7: For persons including companies required to furnish return under sections 139(4A), 139(4B), 139(4C), and 139(4D) (e.g., trusts, political parties, colleges, etc.).

2. Documents Required for IT Return Filing:

• PAN (Permanent Account Number)
• Aadhaar Card
• Form 16 (for salaried individuals)
• Bank Statements
• Investment Proof (e.g., 80C investments, donations, etc.)
• Details of Income from Other Sources
• Details of Capital Gains, if any
• Details of Foreign Assets and Income, if applicable

3. Steps to File IT Return:

a. Registration: Create an account on the Income Tax e-Filing portal (https://www.incometax.gov.in/). b. Choose Appropriate ITR Form: Select the relevant ITR form based on your income sources and status. c. Fill in Details: Enter your personal information, income details, deductions, taxes paid, and other required information in the form. d. Verify and Validate: Review the filled-in form for accuracy and validate it. e. Calculate Tax Liability: The portal will calculate your tax liability based on the information provided. f. File Return: Submit the completed form on the portal. You can file it online or offline (by submitting a physical copy at the income tax office). g. Verification: After filing, verify your return using any of the available methods (Aadhaar OTP, EVC, etc.). h. Acknowledgment: Once verified, you will receive an acknowledgment (ITR-V) via email or can download it from the portal.

4. Due Dates for IT Return Filing (for Individuals):

• 31st July: For most individuals (without audit requirements).
• 30th September: For individuals whose accounts require auditing under the Income Tax Act (e.g., business income exceeding ₹1 crore).

5. Penalties for Late Filing:

• Interest: A penalty is levied on late filing, along with interest on any tax payable.
• Late Fees: Late filing fees may also apply.

6. Post-Filing Actions:

• Keep the acknowledgment (ITR-V) safely.
• Complete any further verification or communication required by the income tax department.