An income Tax Return or ITR is a form submitted to the Income Tax Department with which the taxpayers disclose their net income, savings, assets, expenses and tax liabilities. It communicates your loss and claims refunds from the IT Department. There are several forms in total issued by the Government every year, with or without modifications, for people of different professions to disclose their income of different natures. A taxpayer can download these forms through this link.
Income Tax Return or ITR Basics That You Should Know
ITR filing is an essential process to complete to lawfully practise business or earn money in India. And the aim is not only the completion of this process but also accuracy and punctuality. A taxpayer should check all the information again before finally submitting the report, that too within the due date. After the deadline taxpayers will be liable to pay penalties.
The Income Tax Return forms introduced by CBDT this year for all the taxpayers for the assessment year 2013-14 are:
- ITR Forms labelled from 1-6
- ITR-V form for verification
- ITR acknowledgement form.
Which ITR Form to Use?
the e-Filing portal has the ability to help if you are not sure which ITR form to use. You can select “Help me decide which ITR Form” on the official portal and then click on Proceed. Then the system will help you decide on the correct ITR form for you.
In case you don’t even know which tax slab or schedule is applicable to you including deduction details then you can take the help of a system-generated set of questions that will lead you to the right path with simple answers.
How to File Income Tax Returns Online?
The Income Tax Department has an independent website portal for all taxpayers to register themselves and file Income Tax returns or ITRs. Here’s the official link https://www.incometax.gov.in/iec/foportal to complete the e-filling process.
Also read:Everything You Need To Know About Duplicate Voter Id Cards
What are the Benefits of Filing an Income Tax Return?
Here are the six major benefits of filing an Income Tax Return:
- It serves as a legal document proof: both identity proof and income proof.
- ITR allows taxpayers to avail deductions under certain conditions, ultimately enabling them to reduce their tax liability.
- Serves as an essential document while applying for a loan.
- Allowing you to go abroad by increasing your chances to get approval.
- Helps you to avoid the income tax penalty.
- Allow you to carry forward the losses to the next assessment year.