Income Tax Law of India is governed by the Government by enacting the law as Income Tax Act,1961. The Government imposes a tax on all taxable income of all persons who are individuals, HUF, companies, firms, LLP, association of persons, body of individuals, local authority and any other artificial juridical person. The  levy of tax on these person is depends upon his residential status of the person depending upon No. of days resides in india. Every individual who qualifies as a resident of India as per the rules and Income Tax Act is required to pay tax on his or her global income. Every financial year taxpayers have to file Income Tax Return to Income Tax Department within due date and form as prescribed by Central Board of Direct Taxes. Income Tax Department functions under the Department of Revenue of the Ministry of Finance of India.

Income Tax Return:

An Income tax return (ITR) is a form used to file information about income and tax to the Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return shows that excess tax has been paid during a year, then the individual will be eligible to receive a income tax refund from the Income Tax Department.

As per the income tax laws, the return must be filed every year by an individual, if individual earns income during the financial year more than minimum basic exemption limit of individual. The income could be in the form of a salary, business profits, income from house property, dividends, capital gains, interests or other sources of Income etc.

Tax returns have to be filed by a person before a specified date. If a taxpayer fails to abide by the deadline, person shall to pay a penalty as per Income Tax Act,1961.

Is it mandatory to file Income Tax Return?

As per the Income Tax Act,1961, it is compulsory to file income tax returns if income is more than the basic exemption limit as prescribed in Income Tax Act. The income tax rate is pre-decided in the Union Budget of India as passed by the parliament of india at every February of the year before the beginning of new financial year.

Due dates for Income Tax Return Filing:

1. July 31: A firm or individuals who are not liable for audit.
2. September 30: A company or other who is liable to audit.
3. March 31: All individuals and companies filing belated returns.

Documents required for Income Tax Return Filing:

• PAN CardPAN Card Of Person.
• Identity ProofAadhar Card Of Individual.
• Bank StatementBank Account Statement Of Financial Year Of Person.
• ITR Of PersonCopy Of The Previous Year’s Tax Return If Any.
• Investment ProofSavings Certificates, Deductions, Donations, Premium Receipts Etc.
• Interest StatementInterest Statement That Shows The Interest And Principal Paid.
• Financial Statement Of PersonBalance Sheets, Profit & Loss Account Statements, And Other Requisite Audit Reports If Any.
• Property Details, Details Of Property Purchase And Sales Or Rent Receipts From Tenants And Details Of Tenants.
• Investment IncomeDetails Of Investment Income/Losses
• Form 16/16ATDS Certificates From Employer / Other Persons.

FREQUENTLY ASKED QUESTIONS ON INCOME TAX RETURN FILING

1.What is Form 26AS?

Ans. Form 26AS is a document containing particulars of various taxes deducted from your income by various entities such as your bank, your employer or even your insurance agency. It is a consolidated credit statement issued at the end of every financial year under Section 203AA of the Income Tax Act, 1961.

2.If I have paid excess tax how will it be refunded to me?

Ans. A refund is due only when you have proof to show that you paid more than your liability. This usually happens when the advance tax or self-assessment tax is more than the tax you are required to pay or when the tax deducted at source is more that your total tax liability. After you file your returns you get refund.

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3.Who needs to File ITR?

Ans. Every person or entity is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates.
1. Individual – Salaried, Self-employed or Professional,
2. Hindu Undivided Family (HUF)
3. Company
4. Firm
5. Association of Persons (AOP)
6. Local Authority
7. Artificial Juridical Person
8. Body of Individuals (BOI)
9. Political Party,
10. Educational or medical institution,
11. Trade Union, etc.

4.What is Previous Year and Assessment Year?

Ans. Previous Year is the same as the Financial Year in which the income is earned. Tax is payable on the income earned during this Previous Year. And this tax is payable in Assessment Year, which is the year next to the Financial or Previous Year. For example, for the Income earned in Financial Year (Previous Year) April 1, 2019, to March 31, 2020, the liability to pay tax will fall in 2020-2021, known as the Assessment Year.

5.How to pay Income Tax?

Ans. You can pay by either cash/cheque in any designated bank branch or online on the NSDL website. Payment is to be made in Challan-280 in both cases. The Challan must be filed accurately for further processing.

6.Can i claim the deduction missed out form 16 issued by employer?

Ans. Yes. If some exemptions or deductions got left out from Form-16, you can claim the same in ITR. Various deductions u/s 80 such as ELSS, PPF, Life and health insurance, NSC, Children tuition fees, 5-year fixed deposits, donation for charity, repayment of home loan, or even HRA can be claimed.

7.My company deducts the TDS. Do I still have to file my tax return?

Ans.Yes, deducting TDS and filing a tax return are two different things. In fact, you file a tax return to show that you’ve paid all the tax you needed to pay. The income tax return is also a very useful document when it comes to applying for a loan or visa.

8.What is ITR-V?

Ans. ITR-V is a 1-page document that you receive after e-filing your income tax return. You must print, sign and send it to the Income Tax Department within 120 days from e-filing your tax return if you not e-verify your return.

9.Is it mandatory for me to do the ITR efiling or can someone else do it on my behalf?

Ans. You can seek the help of chartered accountants and agencies dedicated to ITR filing. Also you can always take assistance from CA to file IT returns with the Company Suggestion you can get an expert CA to calculate your taxes and e-file your tax return on your behalf.