Income-tax is a tax levied and collected by the Central Government on income of a person. The provisions relating to the income-tax are governed by the Income-tax Act, 1961. Income–tax return (ITR) is a statement of income and tax thereon, which is to be supplied by a taxpayer to the Income-tax Department in permitted form. All year dissimilar forms of returns of income are approved by the Income-tax Department for different taxpayers having different income from different sources.
ADVANTAGES OF ITR FILING
- Visa handing out – Whether your plans are in the instantaneous future or not, if you are arrangement on traveling out of the country, you will apprehend that visa processing requires that you submit your tax returns for the past few years to the relevant country’s legation, including the UK, Europe, Canada and USA.
- Loan Processing – despite the consequences of the type of loan, most banks will ask you to endow your tax returns for the past few years to appreciate your financial situation. Having your tax returns on hand can velocity up your loan dealing out time.
FEATURES OF ITR FILING
- Carry Losses advance – As per income tax laws you can carry advance losses (capital loss, business loss, etc.) to equalize any future income, for up to eight years. Uninterruptedly. So, even if you have fall into the taxable income collection you can carry forward and fiddle with your losses against your future taxable income by filing your tax return in time.
- Avoid Penalties – While, you may not instantly receive a notice from the tax department for failing to file taxes, you may in due course receive one. If it turns out you failed to file your returns though you were required to file it, then you might be penalized up to Rs. 5,000-10,000 and might face interest payment under section 234A.
PROCESS OF ITR FILING AND STEPS - In ITR filing there are an assortment of steps involved such as:
Step 1: Generate your e-filing account
Step 2: Download Form 26AS
Step 3: Download the income tax return form
Step 4: Fill the information in the Tax return form
Step 5: Authenticate the details
Step 6: Estimate your tax liability
Step 7: Produce the XML file
Step 8: Present the income tax return
Step 9: Send the signed ITR-V to the Income Tax Department
Step 10: Check the ITR-V receipt category
TIMING FOR FILING ITR
The time boundary to file such submission is six years from the end of the evaluation year for filing the return. (Evaluation year is the year instantaneously subsequent the financial year).
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