According to the country’s law, every citizen should file Income Tax Return (ITR). The central government collects tax on your income, called income tax. The government uses the revenue from income tax for its activities and provides convenience to the public. So today, we will know what is Income Tax Return (ITR) is, its types, benefits, rules, method of filling, and how to fill it?
If Income Tax Return (ITR) is said in one line, it has to tell a detail of its annual earnings to the government in writing; this is called Income Tax Return (ITR).
So know all the information related to Income Tax Return in detail…
What is Income Tax Return (ITR)?
The full form of ITR is “Income Tax Return.” Also called “income tax return.” Income Tax Return (ITR) is a tax charged from people on their income.
Whatever work you do, whether it is a job or business or any professional service, if you earn money in any of these ways and come under the purview of ITR, you will have to pay Income Tax returns.
Income Tax Return is the complete detail of the income earned in the financial year. Both Taxable and Tax-Free information earned in the financial year is shown in ITR. You do not have to pay any tax on Tax-Free Income.
If you are in the purview of Income Tax, you must file Income Tax Return until the fixed date. If you do not file Income Tax until the fixed date, you will have to pay interest and penalty.
Income Tax Return is a process in which you can also withdraw the Tax paid by you from the government, and for this, you have to file ITR. Based on this, you can get Income Tax Return Advantages.
Benefits of Income Tax Return
If you file Income Tax Return on time, you also get many benefits. You can also tell the government or the Income Tax Department that you do not come under the purview of income tax liability.
Benefits of filing Income Tax Return Step by Step
Getting a bank loan quickly: If you want to take a home loan or car loan, then the Income Tax Return Receipt of the last 3 years is asked by the bank to make it easy for you to take a loan. Because the accounting of 3 years is seen, the bank provides you more loans based on the receipt.
Starting a Business: If you want to start your business, then ITR is very important, and if you’re going to get some similar parent work position or contract in any government department, then for this you have to show ITR of last 5 years.
Easy to get visa: If a person applies for a visa, then 3-4 years ITR will be asked in it, then the person who files ITR on time. It is easy for him to get a visa.
Getting a refund on deducting more Tax: If a person has defaulted more Tax by mistake, then by filing ITR, one can get a tax refund.
Income Tax Return Rules
The rules for filing the ITR form have to be followed, which is a normal process for you, which is important to know about your income tax. So let’s know.
If you are a Salaried Employee and have to pay your Income Tax, you will also get a Standard Deduction of Rs.40,000. In Standard Deduction, you will exclude the first Rs 40,000 from your entire year’s income, and TDS will be calculated on the outstanding payment.
Along with Tax on Earnings during the financial year 2022-19, you will also have to pay a 4% Education and Health base.
Income Tax Return Form
Every taxpayer should know which ITR form he has to fill out? Let us tell you that there are 7 types of ITR forms. Check the ITR form given below and know which one you must fill out.
Income Tax Return 1: This form is filled by those people who have income from their salary, pension, or interest, and the person who has a house and has taken a house loan also has to fill this form.
Income Tax Return 2: This form is for individuals and HUFs who do not have income from profit from business or profession but are not eligible for ITR 1.
Suppose your income is from the rate coming from more than one house in addition to salary pension or interest. So you have to fill out this form. This form is also to be filled for the income from Lottery like Capital Gains, Dividend and other sources.
Income Tax Return 3: This form is for those who are partners in a firm or business, and their source of income is from income from profit, salary, pension, and other means of the firm.
Income Tax Return 4: This form is for those people, HUFs, and firms (other than LLP) who have more than one house property, income from agriculture is more than 5,000. And those who are computed under sections 44AD, 44ADA, or 44AE of the Income Tax Act also have to fill out this form for commission and income from foreign sources.
Income Tax Return 5: This individual and HUF (filing ITR-1 to ITR 4), Company (filing ITR-6), or Charitable Trusts / Institutions (Filler of ITR-7) is for different taxpayers. ITR 5 is for Partnership Firms other than Partnership Firms eligible for ITR-4, LLPs, Association of Persons, Body of Individuals, etc., for such taxpayers for whom no other form is applicable.
Suppose you have a potential area like doing any business or any other business income. You will also have to fill out the form for them; if you have bought and sold a house-flat, then due to making Pen number mandatory, such information is already with the Income Tax Department. But you have to give all the information.
Income Tax Return 6: This forum is for companies other than companies claiming exemption under Section 11 of the Income Tax Act.
Income Tax Return 7: This forum is for individuals, including companies, who are required to furnish returns only under u/s 139(4A) or 139(4B) or 139(4C) or 139(4D).
How to file income tax return
The method of filling ITR is very easy, for which you have to follow some simple steps; let’s know how to fill income tax return online.
Registered Yourself: To create an Income Tax Account, first, you have to visit the Income Tax website https://www.incometax.gov.in/ Go and Login. There you have to click on Registered Your Self.
You have to create your account by filling in your details. Once your account is created, you can give your User Id, which is the Pan Card Number you have to give; if you want, you can also give Password.
Login: After the account is created, click on Login. There, click on Enter your User Id, Password, and Date of Birth so that it can be processed.
Dashboard: As soon as you click on Login, the Income Tax website will bring you to your Dashboard, your home screen; on this page, you can see your name on the top right.
Quick E-File ITR: You can start your Return File by clicking on the Quick E-File ITR given on your Left Side, but before starting the Return File, you should keep the form provided by the user with you because on this form the same key If you want to enter the information, then click on Quick E-File ITR.
ITR-1 Select: Now, a page will open before you, where your Pan Card Number will be seen written. In ITR Form Name, you have to select ITR-1 for Salaried Employees, and Assessment Year is yet to select 2022-19.
Address Fill: You have three options for the address you want to fill in your return; you can select the address you have in your PAN here.
Submit Process: If in Return which is your Digital Signature, click on Yes otherwise, click on No and click on Submit Button in Last. And your submission process will be Yes/No.
Read Instruction: As soon as you click on Submit, then some instructions will open in front of you, which you have to read carefully; if you do not read them carefully, then you have to click on the problem to file the return.
Click Button: Remember that you do not have to click on Submit Bottom because Submit Button has to be clicked after completing the details.
Personal Information: Here, you will be asked for details about your personal information.
On clicking the Arrow Button, you will see the Personal Information tab on the next page; click on it. Here you have to fill all the fields with a start * like-Locality, Email Address, Mobile Number, Now you have to select the Employer’s Category Here Select the person you work in PSU or Govt.
Tax Status Select: You have to select Tax Status; here, you must choose Tax Payable according to your income. If the Figure of your Tax Payable is less than or equal to Tds Amount, you must select these options accordingly.
In the option of Return File Under Section: If you are doing File Return before Due Date, then select On and Due Date Before, and if you are returning File after Due Date, then select After Due Date. Whether Person Govt By Under Section Code is not applicable here, for this select No.
Aadhar Number: Yes, if you have Aadhaar with you, enter your Aadhar Number and do it next.
Income Details: You have to enter the income details on this page. To enter data on this page, you need a form of about 16b, which your employer must have given to you, and put all of that data here and click on the Next button.
Tds Deduct: The full detail of the Tds Deduct that your Next Employer has done will be visible, which you have to select by clicking and clicking on the Next Button.
Taxes Paid: On this page, you will get Payable Income Niche, enter the number of all your bank accounts, enter the IFSC Code of your bank, enter Name of Bank, Bank Account Number, and select Bank Account Type after entering the complete details. Click on Next.
Section 80g Page: The next page is your section 80g page, in which you have to enter the details of the donation. If you have donated to an organization that is applicable under section 80g, you can put its information on this page, or else you can skip it and click on Next.
Assets and Liabilities Details: Here, you have to enter the details of Assets and Liabilities; this is only for those whose income is more than 50 lakhs.
If your income is not that much, you should ignore this page. When you have filled in all the details, you can satisfy by going to all these tabs and checking your details.
Submit Form: Finally, click on the Submit Button; as soon as you click on it, you will submit your Tax Return; in this way, you will complete the process of filing your return, and after that, you will have to get your Return File verified, for this you have three Four options will come.
E-Verification: Out of these three options, you want to get Aadhar Otp for your Income Tax Return, select this option, after which an OTP will come on the mobile number linked to your Aadhar Number, after entering OTP, you will get E-Verification of ITR If you get the message, then you can file your ITR in this way.
About Income Tax Return Limit
- There is no tax for those earning less than Rs 2,50,0000
- There is 0-5% tax on income from 2.5 lakh to 5 lakh for different age groups.
- According to the age of other people, there is a 20% tax for those earning income from 5 lakh to 10 lakh.
- So this was the income tax return limit, which we carefully explained to you about ITR.
Who should file Income Tax Returns?
As per the land law, Income Tax Return (ITR) should be filed by every business or individual. It is also necessary to clarify that filing income tax returns does not mean taxable people are exempted from paying taxes.
It is to be kept in mind here that there is a difference between filing Income Tax returns (ITR) and paying Tax. Let us also tell you about this.
What is the difference between filing Income Tax returns and paying Tax?
The difference between the income tax return and income tax is that if a person does not come under the purview of filing tax. Even after this, he can file an income tax return.
The same is true of filing Income Tax Returns (ITR) regularly because a person who files regular ITR collects proof of his income.
Proof of income helps him to prove his income. Proof of income is income proof at the person’s time of need. Using this proof, one can apply for a business loan, personal loan, or credit card as per their requirement.