In India, citizens are required to pay income tax as mandated by the Income Tax Act. This applies to individuals, partnerships, LLPs, local authorities, and HUFs. Tax liability is calculated based on income earned from April 1 to March 31 of the following year. Filing an Income Tax Return (ITR) is a key part of this process and can be done online or offline.

What is an Income Tax Return (ITR)?

An Income Tax Return is a document submitted to the Income Tax Department that outlines income and taxes paid for a financial year. It helps in reporting earnings, computing tax liabilities, and claiming refunds for excess taxes paid. The ITR for a financial year, such as 2023-2024, reports income from April 1, 2023, to March 31, 2024.

Sources of income can include:

• Salary: Earnings from employment.
• Business Profits: Income from self-employment.
• Property Sales: Profits from selling property.
• Dividends: Income from investments.
• Capital Gains: Profits from selling assets like shares.
• Interest: Earnings from savings accounts or deposits.

If taxes paid exceed liabilities, a refund may be claimed using the ITR details.

Is Filing ITR Mandatory?

Filing an ITR is mandatory for entities surpassing specific income thresholds. Non-compliance may result in penalties and complications with loans or visas. Reasons for filing include:

• Compliance: Legal obligation to report income.
• Refund Claims: Necessary for claiming refunds on overpaid taxes.
• Loan and Visa Applications: Acts as proof of income and tax adherence.
• Financial Records: Helps in maintaining comprehensive financial history.

Who Needs to File ITR?

Individuals under 59 with annual income over Rs. 2.5 lakhs, senior citizens (60-70) exceeding Rs. 3 lakhs, and super senior citizens (80+) over Rs. 5 lakhs must file ITR. All registered companies, foreign asset holders, companies availing treaty benefits, and NRIs earning over Rs. 2.5 lakhs are also obligated to file.

Documents Required for Filing ITR

Essential documents include:

• Form 16: Salary and TDS details from employers.
• Form 16A: TDS on non-salary income like interest.
• Form 16B/C: TDS details on property sales and rentals.
• Form 26AS: Comprehensive statement of all tax deductions and payments.

How to File ITR Online

Online filing offers convenience, with faster refunds and an electronic verification process. The e-filing system simplifies this through easy-to-use software.
Benefits include:

• Faster Refunds: Quick processing of refund claims.
• Verification Proof: Acts as proof of income for financial needs.
• Income Proof: Required by insurance firms and others for validation.

Which ITR Form to Use

• ITR-1: For residents with income up to Rs. 50 lakhs from salary or one house property.
• ITR-2: For individuals/HUFs with non-business/professional income.
• ITR-3: For those with business or professional income.
• ITR-4: For presumptive income up to Rs. 50 lakhs.
• ITR-5: For entities other than individuals and companies.
• ITR-6: For companies not claiming Section 11 exemption.
• ITR-7: For certain trusts, parties, and institutions.

Due Dates for Filing ITR

The due date varies: Individuals/HUFs’ deadline is typically September 30, businesses requiring audit by November 30, and those with transfer pricing reports by December 31.

How to Check Your ITR Status Online

Status can be tracked online at the Income Tax Department’s portal. Without login details, enter your PAN, ITR acknowledgment number, and captcha. With login, navigate to ‘View Returns or Forms’ for updates.

How to Download ITR V Form Online

Post-filing, download the ITR V form from the e-filing website. Login, select the relevant return, and download. Print, sign, and send it to CPC Bangalore within 120 days, or verify electronically.

Conclusion

Filing an ITR is essential for compliance and financial benefits. Understanding deadlines and procedures helps avoid penalties. Timely filing ensures refunds and fulfills legal requirements effectively. Missing the due date still allows filing by the assessment year’s end on March 31.