Income Tax Return

E-filing Income Tax Returns in India - An Overview

Income Tax Return is a form which is used to file the income tax with the Income Tax Department.
Income tax is a tax imposed by the Central Government on income of a person.

Filing income tax is every citizen’s responsibility. The IT department verifies these declarations of income and if any amount has been paid in excess, the department refunds the amount to the assessee’s bank account. All entities are required to file the taxes on time to avoid penalty.

The form that contains information of income and tax paid of an assessee is called Income Tax Return. The Income Tax Department of India has various forms for it such as ITR 1, ITR 2, ITR 3, ITR 4S, ITR 5, ITR 6 and ITR 7.

Vakilsearch offers the best service and helps you with the correct form to fill on the exact time.

Things to remember during income tax return filing

Why file IT returns?

Benefits

The advantages of filing for IT returns are:

IT Tax Refunds & Taxpayers Responsibility

A taxpayer becomes eligible for tax refund when an excess amount of tax is paid than the actual tax liability. In order to claim the refund the taxpayer must have filed the returns within the due date.

Tax payers usually receive notices by the IT department to ensure they complete the filing process without any delays. Any loss against house property, depreciation, business loss and any form of loss not set off against the income can be carried forward to the subsequent years.

How to file your income tax return online?

A Detailed Process

To file your IT returns, gather all documents like bank statements, last year’s return and Form 16
Log on to www.incometaxindiaefiling.gov.in.

Due dates for filing IT return

Vakilsearch recommends making use of Google Calendar to get early notification of due dates and on time ITR filing.

Income Tax Return acknowledgment

Once ITR is filed, an acknowledgment slip in duplicate is issued. It consists of details like:

Who should file income tax return?

IAs per the Income Tax Department the entities required to file IT returns annually are:

For business tax return filing:

The IT Department of India has rules for all businesses operating throughout the country to file income taxes each and every year. If need be, TDS return can also be filed and advance taxes can be paid to ensure that the business complies with the IT rules and regulations.

Proprietorship Tax Return Filing

A proprietorship firm is run by a single person called the proprietor. Proprietorship is not a separate legal entity, that is, both the proprietor (business owner) and the business are the same. Due to this, ITR filing for proprietorship is the same as that of the proprietor.

Proprietors are required to file IT returns year after year. The procedure is no different from that of individual income tax filing.

Requirements for filing proprietorship tax returns:

Proprietors within 60 years of age and whose income exceeds Rs.2.5 lakhs are required to file proprietorship tax returns. Proprietors above 60 years but less than 80 years of age and whose total income exceeds Rs 3 lakhs are eligible.

Proprietors above 80 years must file their IT returns if their total income exceeds Rs 5 lakhs.

Partnership Firm Tax Return Filing

As per the Income Tax Act, all partnership firms are treated as separate legal entities and are applicable for tax rates that are on par with LLP’s and companies registered in India.

Requirement for filing partnership firm tax return

Irrespective of income or loss, partnership firms are required to do IT filing. If the firm has been commercially inactive with no registered income, a NIL income tax return should be filed within the stipulated date.

LLP Tax Return Filing

All LLPs or Limited Liability Partnerships are considered separate legal entities and their income tax rate is similar to that of all companies registered in India. The Income Tax Act declares that all LLP’s must file their tax returns irrespective of the loss or gain they have incurred in that year. If the LLP has seen no business activity or registered income, then a NIL income tax must be promptly filed.

Company Tax Return Filing

All types of business structures like Private Limited Company, Limited Company, Limited Liability Partnership company, One Person Company are registered under the Ministry of Corporate Affairs. All such companies are mandatorily required to file IT returns as prescribed by the Income Tax Act.

Requirement for filing company tax returns

Any company that is registered with the Government of India and operating on Indian soil is required to submit its filed IT returns. This is equally applicable for those companies that have been dormant with no business transactions and no registered income or expenses.

Documents required for Income Tax Filing in India

To fulfill IT filing in India, the following documents are necessary:

FAQs on Income Tax Return

Why Vakilsearch

2 Working Days

Just share your bank statement and cash transaction details and we'll create the financial statements. In two working days, you'll get your ITR filed.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.