ITR

What is ITR?

Income Tax Return or ITR is a form that shows the gross taxable income for a specific financial year. Taxpayers use this form to officially report their income, deductions, exemptions, and taxes paid. Therefore, it reduces your net income tax liability for the financial year.

According to the Income Tax Act, 1961, a person below the age of 60 years must file a tax return if any part of his income is taxable. If your taxable income exceeds Rs. 5 lakh in a financial year or you have paid advance tax, ITR must also be filed. When you file your tax return, you also have to pay the taxes due as per the current Income Tax Schedules.

There are many types of ITR Form. The details are as follows:

ITR 1 - ITR 1 or Sahaj is the form for those individuals whose income is up to Rs. 50 lakhs from pension, salary, income from other sources and one home value.

ITR 2 - Resident Individuals or Hindu Undivided Families (HUF) who cannot fill ITR 1 or Sahaj form can use this form.

ITR 3 - This form is for individuals or HUFs who have income from their business or profession. In short, undivided families or individuals who do not qualify for ITR 1, ITR 2 and ITR 4 can file ITR 3.

ITR 4 - ITR 4 or Sugam is for all types of professions, companies, HUFs and companies. You can file ITR-4 if your total income includes income from business or profession

ITR 5 - For LLP

ITR 6 - For Company

ITR 7 - For Political Party or Charitable Organization

5 Reasons Why You Should File ITR?
Requesting a tax refund: If your annual income does not exceed 5 million, you can get a refund of all taxes deducted from your income by filing a tax return until July 31.
Legal consequences: If you do not file a tax return, the Income Tax Department may send you an assessment. If you don't fill the ITR, even with a reminder, you may face huge fines and taxes.
Losses carried forward: If you suffer a loss on your business or investment profits, you can reduce your future taxes by carrying it forward by paying your taxes on time.
Proof of Income: Donors and self-employed individuals do not have proof of income like salaried employees, so filing a tax return is a reliable way to verify that income.
Loan and Visa Application: While applying for loan or visa, ITR of the last 3 years is required. Submitting recent years of tax returns can help lenders or embassies verify your financial situation and eligibility.

What is ITR or Income Tax Return?

Income Tax Return (ITR) is a form that you need to file with the Income Tax Department in India. It contains information about a person's income and taxes for the year. The information provided in the ITR should pertain to the financial year, i.e. It starts on April 1st and ends on March 31st of the following year.

Who is eligible for ITR ?

Age Tax Free (Old Regime) Tax Free (New Regime)

Below 60 Years Rs. 2,50,000 Rs. 300000

>60 Years but < 80 years Rs. 3,00,000 Rs. 300000

80 years & above Rs. 5,00,000 Rs. 300000

2. If you want to claim an income tax refund.
3. If you acquired or invested in foreign real estate during the FINANCING period.
4. If the taxpayer is a company or institution, regardless of profit or loss.
5. If you have a job/professional loss or a loss below your income, you can only transfer it to future years if you file your return before the due date.
6. If you have 1 crore or more in one or more existing bank accounts. However, there are no restrictions on depositing money into the Post office current account.
7. If you have deposited more than Rs 50 lakh into your 'savings account'
8. You, yourself or someone else spent more than 2 lakh on travel abroad
9. If the annual electricity charges exceeds 1 lakh.
10. If your tax deducted in the form of TDS/TCS is more than Rs 25,000. For senior citizens (over 60), this limit is 50,000.
11. Your business turnover is over 60 lakh
12. Your income from profession are over 10 lakh.