Income Tax filing
Income Tax filing is good for both salaried and Businessmen. It is companies duty to deduct Income Tax according to their salary slabs and pay it to Income Tax Departments at the same time it is the duty of the Businessmen to calculate his income every year and pay Income Tax accordingly. Employees working with companies Income There are many benefits of filing returns. It helps the Income Tax applicant to get help in all Government schemes and recognition in all fields. Income Tax filing to be done every financial year from 1st of April to March 31 every year.
By filing Income come tax returns, the applicant would come to know about various kind of rules in Income Tax and various sections by which most of the Tax can be saved.
Benefits of Income Tax filing :
- To get loans: your return shows your credibility
- To claim refund of excess tax paid/deducted.
- To get the Visa processed
- To carry forward losses to future years
- To buy high value life cover
Benefits of e-filing the return of income:
- Saves time and efforts.
- The e-filed returns are generally processed faster.
- Easy to maintain the copies of the Return Filed.
Paper returns can only filed by those who are above 80 years of age OR by an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.
- E Return can be filed by ITD portal or through ERIN suvch as Integrated.
- ITRV form to be sent CPC, Bangalore within 120 days, from the e- Filing date.
- Y verifying the return electronically (EVC), there is no need for sending the ITRV to CPC.
- EVC can be done using assesse’s Bank Account, AADHAAR, Demat Account or by directly logging in e filing-portal.
What is Financial Year?
The Financial Year (FY) is the year in which you can earn an income.
What is Assessment Year?
The Assessment Year (AY) is the year following the FY in which the income is evaluated and filing is made.
Return of income:
- The Particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department through a return of Income.
- The return forms are known as ITR forms (Income Tax Return Forms).
ITR Forms applicability
Sources of Income ITR1 ITR2
Income from Salary/Pension Yes Yes
Income from one House Property Yes Yes
Income from multiple House Property Yes
Agricultural Income exceeding Rs.5,000 Yes
Income from Other Sources Yes Yes
Capital Gains Yes
Income tax filing would be beneficial in many ways for the Income Tax payer. It would make the Tax payer accountable and help to save for the future also. Income Tax section 80C make the Tax payer to save and use if for future.