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Income Tax Return (ITR) Filing
Income Tax Return (ITR) Filing is a mandatory process for individuals, businesses, and organizations earning income in India. Filing an ITR provides a summary of the taxpayer’s income, deductions, and tax liabilities for a financial year. It ensures compliance with the Income Tax Act, 1961 and helps claim refunds, carry forward losses, and establish financial credibility.
Importance
1. RLegal Compliance : Mandatory for individuals and entities exceeding the income threshold or engaged in taxable activities.
2. Claim Refunds : Enables taxpayers to claim refunds for excess tax deducted or paid.
3. Avoid Penalties : Prevents fines and penalties for non-compliance with income tax regulations.
4. Financial Credibility : Acts as proof of income for obtaining loans, visas, and other financial services.
5. Carry Forward Losses : Allows taxpayers to carry forward business or capital losses to offset against future income.
Documents Required
For Individuals
For Businesses/Organizations
Features
Features & Benefits of Income Tax Return (ITR) Filing
Multiple ITR Forms
Tax Calculation Assistance
Carry Forward Losses
Linking with Aadhaar
Income Tax Return (ITR) Filing
Penalty Avoidance
Refund Claims
Financial Credibility
Integration with TDS Records
Annual Filing Requirement
Comparison Between ITR-1 and ITR-4
| Feature | ITR-1 (Sahaj) | ITR-4 (Sugam) |
|---|---|---|
| Applicability | Salaried individuals | Individuals and businesses under presumptive taxation |
| Income Sources | Salary, one house property, other sources | Business income, salary, and house property |
| Turnover Limit | No turnover limit | Up to ₹2 crore (business), ₹50 lakh (profession) |
| Complexity | Simple | Moderately complex |
Frequently Asked Questions
What is Income Tax Return (ITR) filing?
It is the process of reporting income earned during a financial year to the Income Tax Department for calculating tax liabilities or refunds.
Who is required to file an ITR?
Individuals, businesses, and organizations whose income exceeds the basic exemption limit or meet other criteria specified under the Income Tax Act.
What is the due date for filing ITR?
- For individuals: July 31st of the assessment year.
- For companies and audited entities: September 30th of the assessment year.
What happens if I fail to file my ITR on time?
Late filing may result in penalties up to ₹10,000, loss of carry-forward benefits for losses, and delayed refunds.
Can I revise my ITR after filing?
Yes, revised returns can be filed until the end of the assessment year.
What is the penalty for incorrect ITR filing?
Fines, penalties, or prosecution may be imposed for intentional misreporting or fraud.
Can salaried individuals claim deductions under Section 80C?
Yes, deductions for investments like PPF, ELSS, and LIC premiums are allowed.
Do non-resident Indians (NRIs) need to file an ITR?
NRIs must file an ITR if their Indian income exceeds the basic exemption limit.
What is the role of Form 26AS in ITR filing?
Form 26AS provides a summary of taxes paid, TDS, and advance tax, ensuring accurate reporting.
Is it mandatory to link PAN with Aadhaar for ITR filing?
Yes, linking PAN with Aadhaar is mandatory for filing ITR.