Income Tax Returns
Everyone who earns or gets an income in India is subject to income tax. (Yes, be it a resident or a non-resident of India ) Your income could be salary, pension or could be from a savings account that’s quietly accumulating a 4% interest. Even, winners of ‘Kaun Banega Crorepati’ have to pay tax on their prize money.
Income Tax Return - Eligibility, Process and Expert Help
Income Tax Return is the form in which an assessee files information about his Income and tax thereon 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 belated 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 Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.
Benefits of Income Tax Return
A tax assessment order can be used as a proof of residence for applying for Aadhaar or passport.
Generally, income tax returns of last three years are required if a person intends to take any housing loan, education or vehicle loan from the bank.
Copies of tax returns are also required as proof for processing credit card applications.
High-value transactions such as purchase of property, buying a car, investing in mutual funds, etc., are reported to the income tax department. So, by filing income tax returns, one can report these transactions & substantiate the same as per one’s income.
Filing of income tax return is a mandatory requirement for the processing of visa.