Income Tax Return
Income Tax Return is the form in which individual files information about his/her Income and tax to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a delayed return, you are not allowed to carry forward certain losses.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year.
These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the individual. Only those Forms which are filed by the eligible person are processed by the Income Tax Department of India.
Individuals who fulfil any one of the following conditions according to law will file their Income Tax Returns during a financial year:
- People whose gross total income (before any deductions exceeds ₹2.5 lakh in FY or ₹3 lakh for senior citizens or ₹5 lakh for super senior citizens).
- Companies or firms irrespective of whether they have income or loss during the financial year.
- Those who want to claim an income tax refund.
- Those who want to carry forward a loss under a head of income.
- Resident individuals who have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs).
- Residents and signing authorities in a foreign account. (Not applicable to NRIs or RNORs).
- Those who derive income from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a non profitable university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
- Foreign companies taking treaty benefit on a transaction in India.
- NRIs, who have income that exceeds ₹2.5 lakh in FY which is earned or accrued in India, are required to file an income tax return in India.
Penalty on late filing ITR
As per the new law from this year, Individuals will have to pay late fee after last date to file income tax return.
- Rs 5000 if tax is filed after due date of 31 August but on before 31 December of that assessment year (in this case 31 December 2019)
- Rs 10,000 if tax is filed after 31 December but on or before 31 March of the relevant assessment year (in this case from 1 January to 31 March 2020.
- Rs 1000 if total income does not exceeds Rs 5,00,000
Benefits of Filing ITR
- Easy Loan Approval,
- Income & Address Proof,
- Quick Visa Processing
- Avoid Penalty