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Income Tax Return Filing
Filing ITR made easier than ever!
What is Income Tax Return Filing?
The income earned by the individuals and businesses are subject to tax. The tax levied on the income of a person is Income tax, which is levied and collected by the Central Government. Such tax on income earned is payable in the same financial year wherein it is accrued in the form of advance tax. But the intimation and calculation of the income as well the tax liability is provided in the Assessment Year. This intimation form is called Income Tax Return. The form and time limit for filing ITR are different for different taxpayers based on the criteria.
Income Tax Return forms are recently modified, to simplify the user experience. But through these new or modified schedules, it is apparent that taxpayers are responsible to prove a claim of expenses, exemptions and deductions. Hence, online filing of income tax return requires assistance from experienced professionals to make sure the correct filing of your return.
Benefits of Income Tax Return Filing
Allows carry forward of losses
Most businesses in their initial years face losses from the business. The business loss or capital losses can be carried forward up to 8 years if the ITR is filed. This loss can also be adjusted against the future income that lowers taxable income in the future. If ITR is not filed, the taxpayer is deprived of this benefit.
Loan Processing and high risk cover
The numbers and the capital base defined by the income tax return is helpful for the loan processing. Higher the financial worth, easier the loan processing. The same applies to high-risk cover insurance. The ITR is a considerable document for making decisions in this regards.
Define financial worth
The ITR filed with the Government defines the financial worth of the taxpayer. The track of ITR shows the financial capacity and also increases the capital base of a person. Hence, the track of income and financial worth is decided by the previously filed ITR. The investors and institutions look forward for returns filed to know the capacity of the business.
Claim refund of TDS paid from salary
Salaried personnel receives the income after deduction of applicable TDS. It may happen that after the eligible deductions, the tax liability is lower than the amount of TDS actually deducted. In such cases, the excessive payment can be claimed in the form of refund only if ITR is filed by the person.
Documents required for ITR filing
PAN Card of the taxpayer
Entities PAN Card
In case of company or firm, PAN card of all directors or partners is required
In case of company or firm, Aadhar card of all directors or partners is required
Cancelled cheque of the taxpayer’s bank account is required.
Bank Account Statement
The statement for concerned Financial Year is required to assess other incomes
For business entities, except proprietorship, financial statements are required
Investment/ expenses u/s 80
Details about the investments made or expenditure u/s 80 must be provided
The salaried person should provide the TDS Certificate, known as Form 16