Tax Solutions

What is Income Tax Return?

Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department of India to file information about his income and taxes payable during that year. Information filed in an ITR should be applicable for a particular financial year between 1st April to 31st March of the next year.

The income you earn can be from sources such as salary, profit in business, sale of house or property, dividend or capital gains, and interest received among others. If you have paid tax in excess during a year, you will get a refund by the Income Tax Department.

s Filing ITR Compulsory?

Income Tax rules dictate that if you earn more than the limit that is exempted from being taxed by the Government, you are mandatorily required to file your tax return according to the tax slabs for each year. Filing your ITR post the due date may attract a penalty and also become a deterrent in getting a loan or visa approved in the future.

What Documents do you Need to File ITR?

When you start the process of filing your income tax return, apart from your salary slips, bank savings account passbook, Aadhar card and PAN card, there are a few other documents that you will require to ease your tax filing process:

• Form 16: It is provided by your employer and contains details of the salary paid by them to you and the Tax deducted at source (TDS) on it.
• Form 16A: It contains details on TDS deducted on interest received from deposits such as fixed or recurring bank deposit.
• Form 16B: If you sell a property, TDS applies on the amount received from you by the buyer, the details of which are present in this form.
• Form 16C: TDS details of the rent paid by your tenant to you are recorded here.
• Form 26AS: This form represents your comprehensive statement of taxes against the PAN number. It includes TDS by your employer, bank or any other organization that has made a payment to you. Advance taxes or self-assessment taxes paid, proof of tax saving investments such as deductions as prescribed from Section 80C to 80U including life insurance policy or a term plan are also listed.

What is GST return?

GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will need to pay the resulting tax liability (money that you owe the government).

Who should file GST return?

All business owners and dealers who have registered under the GST system must file GST returns according to the nature of their business or transactions.

• Regular Businesses.
• Businesses registered under the Composition Scheme.
• Other types of business owners and dealers.
• Amendments.
• Auto-drafted Returns.
• Tax Notice.