Income Tax Return Filing

In India, just like other countries, everyone who earns above a certain amount of money is subject to income tax. Money earned, that is, the income might be traced back to your salary, sale of a property, income from mutual funds, or interest from one’s savings. Filing of the income tax returns at times becomes quite a difficult task for some following the filling of income tax form and submitting it electronically to the Income Tax Department. Through our professionals, we will help you in filing your income tax return at the comfort of your home.

So, what are the Types of Income Tax Returns?

There are different types of income tax returns. They include

ITR 1

ITR 1

ITR 1 refers to the returns filing for individuals whose total income from either of the pension, house property, salary, or other sources is up to INR 50 Lakhs.

ITR 2

ITR 2

The ITR 2 is the income tax returns for individuals as well as HUFs with an income from either of the pension, house property, salary, or other sources, but not from profits and gains of business or profession.

ITR 3

ITR 3

ITR 3 is the specific returns for all the HUFs and individuals who obtain their income through the profits and gains of business or profession.

ITR 4

ITR 4

The ITR 4 refers to the returns for all individuals, HUFs, as well as firms (excluding the LLP), being a resident and having an income of up to INR 50 Lakhs as well as profits and gains of business or profession income computed under either sections 44AD, 44ADA, or else 44AE.

ITR 5

ITR 5

ITR 5 refers to the return for firms, LLPs, Association of Persons, as well as the Body of Individuals.

ITR 6

ITR 6

The ITR 6 refers to the return by all company types such as Private Limited Companies, Public Limited Companies, and the OPC, except Section 8 companies.

What are the Benefits of Filing Income Tax Returns?

The filing of income tax returns, as well as the updating of the ITR status, remains mandatory for every individuals or entity whose total income exceeds the threshold limit quoted in the Income Tax Act-1961. However, other than following the law, there are other benefits of income tax returns filing. They include:

  • Obtaining the TDS Refund Back :- In the process of payment settling, your employer or client may deduct your TDS. Through this, one might be eligible for a tax refund. Filing the income tax returns is the perfect way to claiming your TDS credit for a refund of the excess.
  • Avoiding the Penalty of up to INR 10,000 :- What is the point of getting a penalty that you can easily avoid? The government introduced Section 234F to the Income Tax Act-1961 in a quest to penalize all those who fail to file their income tax returns by the stipulated time. A mandatory fine of INR 5,000 that may rise to up to INR 10,000 is attracted by all those who fail to file their returns.
  • The Avoidance of Tax Notice for Non-filing of the Income Return Tax :- It is disgusting to receive notifications for failing to update your ITR status. However, failure to file your returns might have you receive notifications from the Income Tax Department. Why land yourself in such a state? Filing your income tax returns guarantees you zero nuisance from the Income Tax Department over missed returns filing.
  • Filing your Returns Can Take Input or Carry Forward Losses :- With the timely filing of returns, one is eligible to carry forward their business as well as capital losses that may be incurred during the fiscal period. Through this, the loss can be adjusted against income generated in the subsequent years hence saving your taxes.
  • Ease in Loan Acquisition :- While some may not realize it, failing to file the income tax returns hurts your chances of securing a loan. Banks and other financial institutions require the filing of income tax returns for individuals and entities that wish to sanction a loan. The income declared in the returns depicts an individual’s or entity’s financial credibility; hence, the easier acquisition of a loan from financial institutions or banks.

What is the Process to follow in ITR Filing?

To file your returns, upload the essential documents for income tax filing as well as information to our website portal. Choose the package you wish to pay. After payment, your income tax returns filing application is assigned to one of the professionals who prepare computation as well as net tax liability. After confirmation, the generation of the income tax information for the tax payment is done. With tax paid, the returns are filed, having your ITR-V shared via your email.

Documents Required

Documents Required for Income Tax Return Filing?

To file the returns, one requires the following four documents:

Pan Card

PAN Card

Amendment

Form 16 and 16A

Digital Signature Certificate

The Digital Signature Certificate

Bank Statement

Bank Statement

Packages and How Do They Differ

ITR-1

599
Includes all taxes

ITR (For Salaried Person / One House Property / Other Source) / ITR-1

ITR-2

999
Includes all taxes

ITR (Capital Gain/ More than One House Property / Other Source) / ITR-2

ITR-3 / ITR-4

1499
Includes all taxes

ITR (Proprietor Business & Profession ) / ITR-3 / ITR-4

CA Certification of ITR

1499
Includes all taxes

CA Certification of ITR

ITR (Form 10E)

1499
Includes all taxes

ITR (Form 10E)

Common Questions About Income Tax Return Filing

Answer

Failure to file returns on time for all those who are eligible will attract a penalty of INR 5, 000, which might rise to INR 10,000.

Answer

While individuals have a last date of returns filing set at the 31st July of the next fiscal years, companies and persons who require a tax audit under Section 44AB have their due date set at 30th September of the next fiscal year.

Answer

In case of such a mistake, you are required to file revised returns and then correct the errors earlier made. However, the revised return should be filed before the expiry of a year from the end of the relevant year of assessment.

Answer

The following persons are not eligible to file ITR 1. Any person whose total income is more than INR 50 Lakhs, those with foreign assets, those with taxable capital gains, those who earn from businesses or a profession, those who earn from more than one house property, and those whose agricultural income is more than INR 5,000.

Answer

Individuals whose total income of the assessment year includes income from either a business or profession are not eligible for ITR 2.

Answer

The old ITR 4 tax form has been replaced by the new ITR 3. Those who filed the ITR 3 for the fiscal year 2015-16 should now file an ITR 2.

Additionally, the old ITR 4S tax form has been replaced with the new ITR 4. Those who filed the ITR 4S for the fiscal year 2015-16 should now file an ITR 3.

Answer

No. However, the procedure to file returns requires one to possess competence in legal and financial matters. Hiring a professional therefore remains advisable. Here at e-file, our professionals are competent and experienced hence helping you file your returns at the comfort of your home.

Answer

Yes. With e-file being an online platform, everyone from whichever part of India can have our services at the comfort of their homes. All one needs is a smartphone or desktop and an internet connection, and it’s a done deal. Additionally, since e-file is an online platform, your physical presence is not required.