ITR is an Income tax returns document that is used to publish information about your earnings to the income tax department. VakilSearch can help you solve all the queries you have about ITR.
If you receive money during a fiscal year, it is your federal responsibility to file income tax returns. The income tax authority gives you a window of time after the fiscal year closes on March 31 to set up and file your ITR. You must submit your returns by the deadline to avoid penalties.
In India, filing income tax returns requires some technical paperwork. As a result, taxpayers often have numerous questions while filing their reports. Ten of the most common queries or FAQs – Income tax returns that taxpayers have regarding income tax returns are listed below, along with the appropriate solutions.
Question 1: What is ITR?
A document known as an income tax return (ITR) is used to publish information about your earnings and taxes to the income tax office. A taxpayer’s tax obligation is determined by factoring in their income. If the return reveals that too much tax was paid in a given year, the taxpayer will be entitled to a refund check from the Income tax return for NRI.
A person or corporation that receives any compensation during a financial year must file a return each year. The revenue may come from wages, business profits, rental income from real estate, royalties, retained earnings, interest payments, or other factors.
Question 2: If my tax liability is less than the line, do I still have to file tax returns?
Simply put, yes, you need to file for ITR even if your income is below the line.
You are free from filing a return if your entire aggregate income is less than or equal to 2.5 lakhs. However, submitting a return becomes necessary if your earnings surpass 2.5 lakhs. You should digitally file an income tax return containing information about your revenue, its suppliers, and any applicable reductions and refunds, even if your taxable income is less than 2.5 lakhs after rebates and deductions.
Even though you won’t owe taxes, submitting a return is required.
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Question 3: How can I submit my income tax return digitally?
The income-tax institution has set up a separate gateway for the electronic filing of income tax returns. The taxpayers may submit their income tax returns electronically by logging on to www.incometaxindiaefiling.gov.in.
Learn more about To Prepare and Submit Your Income Tax Return
Question 4: Which tax form do I use to file my income tax?
The best ITR for you will depend on your earnings, where it comes from, and what kind of taxpayer you are.
Following are different types of taxes and when to use them:
ITR 1 (Sahaj) —
- You are a resident.
- Your total annual income is less than 50 lakhs.
- Your income may come from a paycheck, pensions, a single-family home, or other sources.
ITR 2—
- If the sources listed in ITR-1 account for more than 50 lakh rupees in your annual income.
- If you earn money via investment income.
- If you receive revenue from more than one residential property.
- If you have assets or pay abroad.
- If you are a corporate director.
- You own equity shares that are not publicly traded.
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ITR 3—
- if your revenue consists of individuals who qualify for ITR-2a.
- If you work professionally or operate a business.
- If you work for a company as a partner.
- If your assumed annual income is less than 50 lakhs.
ITR 4 (Sugam) —
- If your presumed income through sources that qualify for ITR is more than 50 lakhs.
ITR 5—
- It has to be utilised by LLPs, AOPs, BOIs, and partnership firms.
ITR 6—
- To be used by a business that declines to use the Section 11 exemptions will be used.
Question 5: What are the advantages of filing an income tax return?
Your responsibility to file a return gives you the honour of voluntarily aiding the country’s growth. In addition, the income-tax returns confirm your ability to repay lenders and enable you to take advantage of several financial advantages like bank loans and other things.
Learn more about Income Tax Benefits for Women
Question 6: Are tax returns ever rejected?
If you didn’t sign the ITR-V, it was filed late, or it was of poor quality, the Income Tax department can reject it. Printing another ITR-V, signing it, and sending it to the CPC are options if the first one is denied. This service is accessible only 120 days after filing the online tax return. Additionally, the precise form must be submitted before the 120-day window expires.
The income tax return can be electronically verified using several methods, including the Aadhar Passcode, bank accounts, and creating EVC using other account information, including Demat accounts and many others.
Question 7– Who is eligible to utilise ITR – 3?
A Hindu Undivided Family or an individual who is a partner in a firm and whose earnings are subject to taxation under the heading “Profits or gains of business or profession” may use ITR 3 form. If that earning does not have any other revenue, other than any bonus, interest, commission, salary, or further monetary compensation, regardless of the name granted to it, due to it, or earned by it from that firm.
Question 8: Which tax deductions are available under Section 80C?
The following is a list of deductible expenses typically allowed under Section 80C:
Funds invested in the following: life insurance plans–
Plan 5-year bank or post office deposit
EPF
ELSS programmes
PPF
Senior Citizen Retirement funds
NSC or KVP
Sukanya Samriddhi Yojana
Question 9: How do I ensure my income tax return is filed correctly?
The Income Tax department sends an automated confirmation. Search for this notification in your registered phone number or email to check the progress of your income tax return. Your tax return has been completed if you got the mail. You must visit the income tax gateway for outstanding tasks, such as uploading the saved document or e-verifying the return.
Question 10: Why am I still required to pay tax even after TDS was taken out of my earnings?
The employer, who presumes your tax threshold and salary income, deducts TDS from your pay. You will be required to pay extra tax on your earnings if you have additional revenue streams or if your taxable income varies. TDS is typically withheld from other wages at the appropriate amounts. However, you must pay the extra tax if your overtax is 20 or 30 per cent.
Conclusion
We hope this article helped answer your questions about Income Tax Returns. If not, you can always visit VakilSearch and resolve your queries with the help of professionals.
You can also rely on VakilSearch to ensure you do not have to pay any extra taxes than you need to!
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