All You Need to Know about Income Tax Return

Every individual who falls under the income slab has to file their income tax returns per financial year. If you are new at paying taxes, there must be some questions that you may have in mind. So, let’s look at what income tax return is and some common questions regarding it.

What is Income Tax Returns (ITR)?

Income Tax Return is a form that is used by taxpayers to fill in income and tax details. If a taxpayer ends up paying excess tax, the Income Tax Department sends a refund amount to the taxpayer. ITR has to be filed every financial year by salaried and self- employed individuals as well as by businesses. The income earned can be a salary, income from a property, profits from a business, income from capital gains, dividends or interests. The income tax return have to be filed before the deadline and if it is not done within the stipulated period, a penalty will be levied on the taxpayer.

Is It Compulsory to File Income Tax Returns?

Yes, it is mandatory for every individual with an income of more than the exemption limit to file ITR. The tax rate is already decided for the taxpayers and the income tax returns have to be filed according to the income tax slabs.

Who Has to File Income Tax Returns?

1. Individual taxpayers: Every individual with an income of more than INR 2.5 lakh who is less than 59 years of age has to pay taxes. For senior citizens between the age of 60 to 80, the income tax limit is of more than INR 3 lakhs. And for super senior citizens above the age of 80, the income tax limit is of more than INR 5 lakhs.
2. Companies: Every company that generates income has to pay taxes regardless of having earned any profit that year.
3. NRIs: Any NRI who earns an income of more than INR 2.5 lakh per financial year in India has to file for taxes

Documents Required to File ITR

Taxpayers need the following documents to file for income tax returns:

• Form 16
• Form 16 A, B and C
• Form 26AS
• Salary slips
• Aadhaar card
• PAN card
• Bank account passbook
• Tax-savings investment proofs
• Income tax exemption proofs

Why Is E-filing Your Income Tax Returns Important?

E-filing your income tax returns consists of submitting your returns online. The benefit of doing so enables you to file your ITR from the comforts of your home or while you are on vacation with just an internet connection. You are also able to complete the document verification much faster and with ease. Due to the efficient submission of documents and quicker completion of filing returns, it is important to switch to online mode.

How to Check Income Tax Return Status Online?

To know at what stage you tax filings is at, you can check it online with the below-given steps:

1. Log in to the e-filing website
2. Click on ‘View Returns’
3. In the dropdown menu, select the assessment year and income tax returns
4. Now, you will be able to see the status of your returns which will be visible on the screen