Income Tax Return: An Overview
 

What is Income Tax Return?

An Income tax return (ITR) is a form used to file information about your 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 an income tax refund from the Income Tax Department.

As per the income tax laws, the return must be filed every year by an individual or business that earns any income during a financial year. The income could be in the form of a salary, business profits, income from house property or earned through dividends, capital gains, interests or other sources.

Tax returns have to be filed by an individual or a business before a specified date. If a taxpayer fails to abide by the deadline, he or she has to pay a penalty.

Forms for Individuals with Salary

ITR-1- ITR-1 form can be used by Individuals who have less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only.

ITR-2- ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house property, income of more than Rs.50 lakhs.

Penalty for Late Filing Income Tax Return

Taxpayers who do not file their income tax return on time are subject to penalties and charged interest on the late payment of income tax. Also, the penalty for late filing income tax returns on time has been increased recently. The penalty for late filing income tax return is now as follows:

Late Filing between 1st August and 31st December - Rs.5000    
Late Filing After 31st December - Rs.10,000    
Penalty if taxable income is less than Rs.5 lakhs - Rs.1000

Documents Required

It is important to have all the relevant documents handy before we start your e-filing process.

Bank and post office savings account passbook, PPF account passbook    
Salary slips    
Aadhar Card, PAN card    
Form-16- TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any    
Interest certificates from banks and post office

Form-16A, if TDS is deducted on payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws    
Form-16B  from the buyer if you have sold a property, showing the TDS deducted on the amount paid to you    
Form-16C  from your tenant, for providing the details of TDS deducted on the rent received by you, if any    
Form 26AS - your consolidated annual tax statement. It has all the information about the taxes deposited against your PAN    
a) TDS deducted by your employer    
b) TDS deducted by banks    
c) TDS deducted by any other organisations from payments made to you    
d) Advance taxes deposited by you    
e) Self-assessment taxes paid by you    
Tax-saving investment proofs    
Proofs to claim deductions under sections 80D to 80U (health insurance premium for self and family, interest on education loan)    
Home loan statement from the bank