Find out how to file Income tax return in Delhi.
ITR filing must be done by individuals and businesses to give information about their earnings to the government. ITR can be filed online or offline, as per the individual’s convenience. The Income tax is filed depending on the income slab of the individual or the business concerned. Income Tax Return (ITR) is a form that contains details pertaining to an individual’s income and the respective taxes to be paid in the given financial year. It is filed with the Income Tax Department of India. The concept behind Income Tax is quite vast and complicated. It is quite procedural and involves several legal principles. The computation of ITR is best done by professionals who have in-depth knowledge of taxation. They have to ensure that the filing is done properly, failing which the client would end up paying more than required. Sometimes, there are instances wherein a taxpayer pays taxes in excess for a given assessment year. In such cases, the excess amount is refunded to the taxpayer. Alternatively, one may also pay less than what ought to have been paid and under such circumstances, the due has to be paid.
The ITR varies from ITR1 to ITR7 depending upon the type of income. Few ITR forms are more descriptive than the others wherein additional disclosures are required, such as a balance sheet and a profit and loss statement information. It is also essential to hold the mandatory documents while attempting to file the ITR. ITR can now be filed online as well through the e-filing portal. The filing can be accomplished by hiring a professional or can be done by self by creating a profile and registering on the income tax department website. The deadline to file ITR is July 31st of every year. It is necessary to have Form 16, other income details, all bank account numbers, IFSC codes, and personal details in place before proceeding.
Categories of Income Tax Returns Forms
| Form Type | Type of Income |
| ITR 1 | Individuals who gain income from salary and interest |
| ITR 2 | Individuals and HUF that don’t earn income from business and profession |
| ITR 3 | Individuals and HUF who are in partnership firms, who do not carry out business or profession under sole proprietorship |
| ITR 4 | Individuals and HUF that earn from proprietorship or profession |
| ITR 4S | Individuals and HUF that earn presumptive business income |
| ITR 5 | Association of Persons (AOP), Body of Individuals (BOI), Firms |
| ITR 6 | Companies other than those claiming exemption under Section 11 of Companies Act, 2013 |
| ITR 7 | Persons and companies that are required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) |
Mandatory Documents for ITR Filing
- Bank account details along with IFSC code
- TDS certificate or Form 16/16A
- Profit and loss accounts, balance sheets
- Savings Certificate
- PAN (Permanent Account Number)
- Details of the assessee.
Discover the Seamless Power of Online Bookkeeping – Empowering Your Business With Real-Time Insights and Financial Clarity, All at Your Fingertips.
Procedure to File Income Tax Returns Offline
- Log into the official website and get registered in the portal. The user id is the PAN of the applicant
- The tax credit statement in Form 26AS and the TDS as per Form 16 must tally against each other
- Click on the ITR forms and choose the financial year
- Download the applicable ITR form. If the exempted income exceeds ₹5000, Form ITR 2 should be chosen. For Forms ITR 1 or ITR 4S, the process can be completed on the portal by clicking the ‘Quick e-file ITR’ link
- Open the downloaded Excel Utility and enter the required details using Form 16
- The tax to be paid can be computed by clicking the ‘Calculate Tax’ tab
- After filling in the challan details, the tax can be paid
- Revisit and verify the data entered in the worksheet by clicking the ‘validate’ tab
- Generate and save the XML file thus generated
- Upload the XML file by clicking ‘Upload Return’ on the portal
- A pop-up appears wherein the applicant has to affix the digital signature. The applicant has to Select ‘Yes’ or ‘No’ depending upon whether the individual has the digital signature or not
- The applicant can thereafter download the acknowledgment form and ITR Verification (ITR-V) form
- ITR V should be printed and signed by the applicant in blue ink
- The form should be sent by ordinary post or speed post to the capital gain tax
Smart tax planning, simplified – explore the capabilities of our Tax Calculator.
Procedure to File IT Returns Online
The Forms ITR1 to ITR4S can be furnished by uploading XML or by online submission.
- Log in to the e-filing portal and create an account to get registered with the portal
- Under eFile go to ‘Prepare and Submit ITR Online
- Select the applicable form from ITR1 to ITR4S and the suitable assessment year
- After entering the required details, click ‘Submit’
- Once the details are submitted, the acknowledgment details appear on the screen
- The link has to be clicked to view or generate a printout of acknowledgment of form ITR V.
It is always a good practice to file ITR even if the individual falls in the exempted category. The document can be very functional while making applications for loans, as it speaks about one’s financial position. It acts as proof of income, which in turn reflects one’s ability to pay a loan. If one intends to move abroad for higher studies or to pursue a job, it is required to furnish at least three years of filed ITR as proof of income. This shows one financial health which in turn substantiates that the individual can be self-sustained in an income tax class
Register for income tax is not only crucial but also can be tricky and tedious. It is prudent to delegate this to the professionals as they know better to resolve the calculations involved. Outsourcing it to the experts will also enable one to give their undivided attention to their profession. At Vakilsearch, our team is professionally trained in filing taxes, accounting, and bookkeeping apart from offering best-in-class legal services.
Read more:
