Income tax is the tax imposed by government on the income or profits of an individual or an organization.
Income Tax Returns (ITR) filing needs to be done with the Income Tax (IT) department which shows the income and expenditure of the taxpayer. Tax is paid according to the different tax slab fixed by the government. ITR filing is done on the basis of PAN (Permanent Account number).
Who are liable for ITR filings?
ITR filing is compulsory for;
- Indian residents
- Sole Proprietors
- Partnership firms
ITR filing is compulsory for any individual whose annual income exceeds Rs2,50,000/- . In case of partnership firms, LLPs, Sole proprietors and companies; filing ITR is compulsory irrespective of their turnover, income, profit or loss.
Benefits of ITR filing-
Filing income tax returns has many benefits. Some of them are as follows:
- Income Tax refund
- No issues with Income Tax department
- Speedy visa process
- Documentation of Financials
Income Tax slab rates-
In case the total income exceeds Rs 1 crore there is a 15% surcharge in the income tax.
For Senior Citizens (60 Years Old or More but Less than 80 Years old)
The below mentioned documents will be required for ITR
- Basic Information 1. PAN Number 2. Aadhar Number 3. Current address proof such as electricity bill, phone bill
- Bank account details
- Disclosures of income which include 1. Salary 2. Fixed deposits 3. Saving bank account
- Information about TDS return filing
- Information regarding Deduction claimed under section 80
- Previous IT filing details (Financial statement)
- User ID and password for login, if any
The entire process for Income Tax return filing is quite complex and time taking. It includes:
- The different steps for filing ITR
- Being aware of the due dates
- Knowing different forms for ITR
- Selection of plan
Steps for filing Income Tax Return filing-
Due Dates for IT return filing-
- July 31
For individuals and firms not liable to audit
- September 30
For companies and others who are liable for audit
- March 31
Belated returns for companies and individuals
What we do
At Starters’ CFO our work starts from the scratch i.e. collecting the basic documents and goes all the way to filing ITR.
- Document Collection- Our experts will collect all the required documents well in advance, so that the process of filing is hassle free.
- Reminders- Individuals generally tend to forget the date for ITR and end up paying penalties. We make sure you get timely reminders and the filing is done well within the time frame.
- Preparation- Once all your documents are collected our experts starts preparing for the process of ITR filing. An Income Tax return will be prepared and sent to you for approval.
- Income Tax Return filing- Once we get approval from your side we will go on with filing the income tax returns with the IT department.
1. What is income tax return?
Income tax return is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the income tax department.
2. Why is it required to file Income tax return?
Filing of income tax provides proof for your income as legal and disclosed. It helps you in many ways such as getting refunds, applying for loans, applying for tenders, startup funding etc.
3. What are the forms of return prescribed under the Income tax law?
Under the Income tax law different forms of returns are prescribed for different classes of taxpayers. The returns forms are known as ITR forms (Income tax return forms).
4. What are the different modes of filing the return of income?
a) By furnishing the return in a paper form
b) By furnishing the return electronically under digital signature
c) By transmitting the data in the return electronically under electronic verification code
d) By transmitting the data in the return electronically and thereafter submitting the verification of the return in