What is Income Tax Returns or ITR?

Income Tax Returns (ITR): What You Need to Know.

Income Tax Return Online is the form through which an individual or a business files information regarding their Income and Tax applicable to Income Tax Department. The Income Tax Act and Income Tax Rules of India make it an obligation of every citizen to file their returns at end of every financial with the income tax department. These Forms vary depending on the income source and category of the Income.

Every taxpayer must file his/her ITR before or on the due date. Delay in the filing of ITR may result in penalties and are not allowed to carry forward certain losses.

Which is Income Tax Return e-Filing?

E-filing here basically stands for Electronic Filing which is the process of filing it through the internet. It enables the users to file Income Tax Returns Online from anywhere at their leisure. This also makes refunds much faster compared to paper tax forms because it transmits data directly to computer systems.

Types of Income Tax Returns e-filing.

There are basically three ways for e-Filing of ITR.
• The first option is to File it with DSC(Digital Signature Certificate) in which case no further actions are required and is the fastest and most simplest method.
• The Second option will be to do it without DSC in which case ITR-V form is generated, which is then to be printed, signed, and submitted to CPC, Banglore via Speed Post or Standard Post within 120 Days from the date of e-filing.
• The third option will be to use ERI(e-Return Intermediary) with or without DSC.

Why should you file ITR and Who is it Applicable for?

Filing of ITR is mandatory for every individual if any of the following is applicable for you:

1. If your gross annual income is above the specified exemption threshold as mentioned below-
   -Individuals of age below 60 with an annual gross income of 2.5 Lac. and above.
   -Individuals of age between 60 to 80 with an annual gross income of 3.0 Lac. and above.
   -Individuals of age above 80 with an annual gross income of 5 Lac. and above.
2. If an individual or Hindu Undivided Family wants to claim an income tax refund from the income tax department.
3. During the Financial Year, the individual has invested in foreign assets or has earned from foreign assets.
4. An individual is also required to file ITR if he/she wants to apply for a visa or a Loan.
5. If the Tax Payer is a registered Firm or Organisation irrespective of their profit or loss.
6. There are also some special conditions mentioned below which once applicable make it mandatory to file ITR-
7. If an individual has deposited in any of the current banks accounts an amount of Rs 1.0 crore or above.
8. Incurred Foreign travel charges or more than Rs. 2 Lac. For self or any person.
9. Incurred overall expenditure of more than Rs. 1 Lac on electricity consumptions.