The government of India requires every citizen to pay income tax on their earnings, regardless of whether they are an individual, association, firm, LLP, local authority, or Hindu undivided family. These taxes are governed by Income Tax laws, and it is mandatory to file an Income Tax Return (ITR) every financial year. You have the option to file your ITR either online or offline, based on your convenience. Furthermore, knowing what IT returns are is a crucial requirement that should be not overlooked, as it will provide you with a better insight into the filing process.

What is ITR Filing?

Individuals in India are required to file an Income Tax Return, which contains information regarding their income and taxes due for a particular financial year, starting from 1st April and ending on 31st March of the following year. Income can be derived from various sources, including salary, property sales, business profits, capital gains, dividends, and interest received.

Moreover, it is also known as annual ITR filing. So if you are thinking, what is annual ITR? The answer is it’s the other name of the usual ITR filing.

Who Should File ITR?

Here are the details about the obligated individuals and entities who are obligated to file ITR:

• Individuals under 59 years of age with an annual income of more than ₹2.5 Lakhs.
• Registered companies, even those without any profit, are required to file an IT return.
• Individuals having assets or financial interests outside of India.
• Companies based outside of India that have contractual advantages on domestic transactions.
• NRIs who earn more than the annual exemption threshold of ₹2.5 Lakhs.

Documents Required to File ITR

Now that you know what is ITR, you must also be aware of the required documents to file an ITR. Below are the details about the same:

• PAN card
• Aadhaar card
• Salary slips
• Form 16
• Form 16A

How to File ITR

Here’s a step-by-step guide to filing an ITR:

• Visit the Income Tax Department's e-filing website and login into the portal using your user ID and password
• In case of a new user, you must register yourself first using the same site.
• Once logged in to the page, navigate to the ‘ITR Forms' section.
• Next, select the appropriate ITR form and assessment year.
• Fill in the required details, including personal information, income details, deductions, taxes paid, and bank account information.
• Review and verify the information entered in the ITR form.
• Click on 'Submit' to file the return online.
• After successful submission, an acknowledgement will be generated, which can be downloaded and saved for future reference.

Conclusion

Income Tax Return (ITR) filing is a crucial requirement for all individuals and entities in India with a taxable income. The process involves providing details of your income, taxes due, and deductions for a particular financial year. ITR filing can be done either online or offline based on your convenience. It is important to know who is obligated to file ITR, the required documents, and the step-by-step process of filing to ensure timely and accurate submission. Being aware of these details and staying updated on changes in tax laws can help you file your ITR smoothly and avoid any penalties.

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Frequently Asked Questions

How to check the status of your income tax return?

Here's how to confirm the status of your ITR:

• Visit the Income Tax Department of India's official website.
• Enter your PAN card number and password to access your account.
• On the dashboard, select the 'View Returns/Forms' option.
• Choose 'Income Tax Returns' from the drop-down menu.
• Select the assessment year for which you wish to check the status of your ITR.
• Click on the acknowledgement number of the ITR whose status you want to examine.
• Your ITR status will be displayed on the screen.

What is an income tax return notice?

An Income Tax Return (ITR) notification is a letter delivered by the Income Tax Department to a taxpayer when their income tax return contains an error. The notice can be given to the taxpayer for a variety of reasons, including non-filing of the ITR, inaccuracies in the filed ITR, underreporting of income, or claiming excessive deductions.

How do we get an income tax return?

You can get your income tax return by filing the ITR through the official website of the Income Tax Department.

Who is eligible for ITR return?

Individuals, Hindu Undivided Families (HUFs), corporations, companies, and NRIs are required to file an Income Tax Return (ITR) if their income exceeds the government's basic exemption level.