Income Tax Return (ITR) Filing
Income Tax Return (ITR) filing is a crucial annual requirement for every taxpayer in India. It is a process where individuals and entities disclose their income earned during a financial year and pay taxes on it as per the Income Tax Act, 1961. The filing must be done within the stipulated due date to avoid penalties and legal implications.
Importance of ITR Filing
Filing your ITR is not just a legal obligation but also a way to:
- Comply with Legal Requirements: It fulfills your duty as a responsible citizen under the Indian tax laws.
- Claim Refunds: If you have excess tax deducted or paid, filing ITR allows you to claim refunds.
- Financial Documentation: It serves as an official financial record that can be useful for loans, visa applications, etc.
- Avoid Penalties: Non-filing or late filing can attract penalties and interest.
Types of ITR Forms
There are different types of ITR forms, each catering to different taxpayer categories:
- 1. ITR-1 (Sahaj): For individuals with income from salaries, one house property, and other sources (excluding lottery winnings and income from race horses).
- 2. ITR-2: For individuals and HUFs not having income from profits and gains of business or profession.
- 3. ITR-3: For individuals and HUFs having income from profits and gains of business or profession.
- 4. ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLPs) having presumptive income from business and profession.
- 5. ITR-5: For firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), and artificial juridical persons.
- 6. ITR-6: For companies other than companies claiming exemption under section 11 (income from property held for charitable or religious purposes).
- 7. ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) (i.e., trusts, political parties, institutions, etc.).
Steps for ITR Filing
- Gather Documents: Collect necessary documents such as PAN card, Aadhaar card, Form 16 (issued by employer), bank statements, investment proofs, etc.
- Choose the Right Form: Based on your income sources and type, select the appropriate ITR form.
- Compute Taxable Income: Calculate your total income, deductions under various sections, and arrive at taxable income.
- File Online or Offline: Most taxpayers now file ITR online through the Income Tax Department's e-filing portal (https://www.incometaxindiaefiling.gov.in/). Alternatively, you can file physically by submitting a paper return.
- Verification: After filing, verify your return using Aadhaar OTP, net banking, or sending a signed physical copy to CPC Bangalore.
- Acknowledgment: Upon successful filing, you will receive an acknowledgment (ITR-V) which should be verified and sent to CPC Bangalore within 120 days.
Common Mistakes to Avoid
- Incorrect Form Selection: Choosing the wrong ITR form can lead to rejection or complications.
- Mismatch in Details: Ensure all details like PAN, income figures, deductions, etc., match with your documents.
- Late Filing: File within the due date to avoid penalties and interest.
Expert Assistance at Accto
At Accto, we offer expert assistance throughout the ITR filing process:
- Personalized Guidance: Our experts provide personalized guidance on choosing the right ITR form and understanding your tax liabilities.
- Document Review: We ensure all your documents are reviewed for accuracy and completeness before filing.
- Filing Support: We assist you in filing your ITR accurately and on time, leveraging our knowledge of current tax laws and regulations.
- Post-Filing Support: Our services include post-filing support such as tracking refunds, responding to tax notices, and updating you on changes in tax laws.
Pricing Plans
Start
₹ 1,499 /-
Inclusive of all Tax
- Salaried
- Single form 16
- Salary upto 50 Lac
- Expert assisted ITR Filling
Scale
₹ 2,499 /-
Inclusive of all Tax
- Salaried
- Multiple form 16
- Capital Gain
- Salary upto 50 Lac
- Expert assisted ITR Filling
Grow
₹ 3,499 /-
Inclusive of all Tax
- Salaried
- Multiple form 16
- Capital Gain
- F&O.
- Salary upto 50 Lac
- Expert assisted ITR Filling
FAQ on ITR Filing
Income Tax Return (ITR) filing is the process of declaring your income to the tax authorities and paying taxes on it as per the Income Tax Act, 1961.
Any individual or entity whose income exceeds the basic exemption limit (currently ₹2.5 lakh for individuals below 60 years) or who wants to claim a tax refund must file an ITR.
Filing ITR is mandatory to comply with tax laws, claim tax refunds, as proof of income for visa applications or loans, and to avoid penalties for non-compliance.
Documents typically required include PAN card, Aadhaar card, Form 16 (issued by employer), bank statements, investment proofs, etc.
The choice of ITR form depends on your income sources and type. For instance, ITR-1 (Sahaj) is for individuals with income from salaries, house property, and other sources, excluding business income.
The due date for filing ITR varies each year but is generally July 31 for most individuals. It's advisable to check the current year's due date to avoid penalties for late filing.
Yes, most taxpayers now file ITR online through the Income Tax Department's e-filing portal. It offers convenience, faster processing, and immediate acknowledgment.
Missing the deadline can result in penalties and interest on unpaid taxes. It's important to file within the due date or seek assistance to minimize penalties.
You can track your ITR status online through the Income Tax Department's e-filing portal using your PAN and acknowledgment number.
If you receive a tax notice, it's essential to respond promptly. Seek expert assistance to understand the notice and provide the necessary documents or explanations.