The income tax law in India is framed by the Government. According to these laws, taxation imposed on a person depends upon his residential status. Qualified residents of India must pay taxes on their global income. Taxpayers are required to follow certain rules every financial year when filing their income tax returns. The best Chartered Accountant in India can help you in filing income tax returns with ease and confidence.
tIn this blog, we will look at exactly what an income tax return is, eligibility criteria and benefits of filing ITR and more. Thus, without further delay, let’s begin.
What is income tax return?
Income tax return is referred to as a form wherein a person has to furnish all the details regarding their income and tax payable on income.
Importance of of filing income tax return
There are several reasons as to why a taxpayer must file an income tax return. Besides being a Government mandate process, the primary reason for filing ITR is to claim tax reductions. Filing your ITR on time allows you to avail yourself of financial facilities easily. So, whether you want to apply for a credit card or seek a personal loan, filing ITR can make the process seamless.
Eligibility criteria for filing income tax return
While reading about income tax return, it is natural to have this question in your mind - Who should file an ITR?
Any person or registered companies that generate income, regardless of whether they have made profit or not during that financial year
Any person who wish to claim a tax refund
Individuals who want to make investments
Any person who wants to apply for a loan or visa
Individuals who have asset located outside India
Furthermore, all individuals whose total income based on their age exceeds the following set limit
Under the age of 59 - INR 2.5 lakh
Senior citizens aged 60 to 79 - INR 3 lakh
Citizen aged 80 and above - INR 5 lakh
Documents required to fill income tax return
When you are filing your income tax return online, you must have the relevant documents before starting your e-filing process.
Salary slips
Bank and post office saving account passbook
Aadhar card and PAN card
TDS Certificate
Interest Certificate
Home loan statement from bank
Tax saving investment proofs
Form 26 A - It has information related to the taxes deposited against your bank
Form 16, 16 A, 16 B, 16 C
Benefits of filing income tax return
There are various advantages of filing ITR. Some of the top ones are mentioned below:
By filing ITR, an individual can claim tax refund from the IT department
ITR receipt is important to process visa applications
ITR receipt act as a supporting document for the processing of bank loans
As we know it is mandatory for some companies or individuals to file ITR. Thus, timely filing of ITR will help one avoid penalties
Lastly, filing for ITR allows interest deduction while applying for home loan interest
Due date for filing ITR
To claim the benefits of ITR, it is advisable to file ITR before the due date. Generally, the due date of filing ITR is 31st July for non-audit cases while 31st September for audit cases in a particular financial year. However, the income tax department can announce the due date extension for filing ITR.
By going through this handy guide, one can easily understand the meaning of income tax return, eligibility criteria of filing ITR, benefits, and documents required to file ITR. What more? It will help you acknowledge the benefits of filing ITR and motivate you to apply for the same without any delay.
Also, if you are seeking professional help to file your ITR on time, look no further than RBG Consultants. We have a team of the best Chartered Accountants in India who ensure that the e-filing process of ITR is carried out hassle free. We work closely with our valuable clients to get all the important information and documents needed to file ITR and also verify them. So, when you choose us, you can be assured of timely filing of ITR as our Chartered Accountants understand every aspect of ITR.
To know more about our services, get in touch with our team today!
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