ITR (Income Tax Return) Filing

Why You Must File ITR ?

It will be more correct, to make sure that all the details of the accounts are true, the ITR returns on filing need much more attention. For avoiding errors one needs to check documents, tax statements, interest income certificates, etc. if one returns ITR then the chances of errors become lesser.

Payment Interest- the assessee who has to pay a tax of more than 1 lakh has to file earlier so as to increase interest payment on a monthly basis. Failure to file returns will levy 1% interest for every month.

The loss will be moved forward: the Income-tax plan is to take ahead the losses from one fiscal year to another. Although, taxpayers can avail of this if they file ITR before the expected last date.

Quick Refund: if the taxpayers file their return before November 30 then refunds can be processed who are waiting for the same. Earlier ITR filing may be confirmed before it gives quick tax rebates.

Document Checklist for Filing ITR Online

The most important thing that assessee would require to start with the filing of ITR is the required documents. Documents the assessee would need to vary depending on the type of income he has:-

Personal Documents

• PAN Card
• Aadhaar card or Aadhaar enrollment number
• Details of domestic assets and liabilities
• Details of foreign assets

Income-related Documents

• Details of exempt income earned during the year
• Form 16/16A/16B to fill in the details of income
• Balance sheet, P&L account statement and other audit reports, wherever applicable
• Details of Sales/Turnover/Gross Receipts during the year

Bank-related Documents

• Bank statement
• Interest statement of the year
• Details of all bank accounts held during the year( IFSC code, account number, name and nature of account)

Tax-related Documents

• Copy of last year’s tax return
• TDS certificate
• Saving certificate or deduction
• Form 26AS to cross-check TDS details

Real Estate-Related Documents

• Buyer agreement, sale deed and investment documents to show capital gains on sale and details of exemption if availed or not
• Lease deed to show rental income

Investment and Expense Related Documents

• Home loan statement to claim a deduction on Principal amount and interest on home loan
• Proof of investment such as mutual funds account statement
• Premium receipt for life insurance plans
• Medical insurance premiums and preventive checkup receipts, etc.

Other documents such as proof of donation

Various ITR Forms and their applicability:

• ITR 1– For Individuals residents (Not Ordinarily Resident) having total Income up to Rs.50 lakhs, Salaried income, single House Property, Other Sources Income (Interest, Divided etc.), and Agricultural Income up to Rs.5 thousand (Not applicable to Individuals being Director in a company or has invested in Unlisted Equity Shares)
• ITR 2– For Individuals and HUFs not having income from profits and gains of business or profession
• ITR 3 – For Individuals and HUFs having income from profits and gains of business or profession.
• ITR 4 – For Individuals, HUFs and Firms (other than LLP) being a Resident having a total of up to Rs.50 lakhs and having income from business and profession computed under sections 44AD, 44ADA or 44AE (Not applicable to Individuals being Director in a company or has invested in Unlisted Equity Shares)
• ITR 5 – For persons other than:-
  (i) Individual,
  (ii) HUF,
  (iii) Company and
  (iv) Person filing Form ITR-7
• ITR 6 – For companies other than those claiming exemptions under section 11
• ITR 7 – For persons including companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)

Note: Income earned in the previous year is called a financial year, while an Assessment year is a year succeeding the previous year in which the taxpayer assess its income and files his return of income.

What happens if a person does not file Income Tax Returns?

In case, if you do not file your Income Tax Return due to any reason, the Income Tax Department will send you a notice asking you to abide by the rules and file your returns. This process might include penalties for delay in filing or not filing the Income Tax Returns. In defaulter cases, the IT department does not pay back your refunds. Also, if you are found to pay taxes to the Government, the interest on the base tax keeps adding up on your principle amount until you clear all your dues. Under the Income Tax Act 1961, a new section 234F has been added with effect from the assessment year 2018-19. Under the section, a penalty is levied to the person if they have failed to file returns within the due date.

Benefits of Filing Income Tax Return With E-TAX HUB INDIA

• E-TAX HUB INDIA will help you to file the income tax e-filing within due date to avoid penalty.
• Our Professionals are available 24/7 which helps only few minutes to file the online income tax return filing.
• Most of the persons choose the incorrect form and ended up collapsed. Our professionals will help you to pick the correct IT online return form and guide you through the process till end.

For any more support and complete guidance on the online income tax return filing you can simply write us on sales@etaxhub.in and connect 9962903855/ 044 48607336