To file an Income Tax Return is the duty of every citizen of India. However, besides this, there are various other reasons, why you should file your Income Tax Return:
When you file Income Tax Return, you create your Financial Record with Tax department. This financial / tax history is positively viewed and favourably used by most agencies with whom you may need to interact, such as when you avail any kind of loan (home, personal, vehicle loan) or when you apply for VISA, etc.
It is mandatory to file your Income Tax Return, if you have any Foreign Assets.
If you have a refund due, you need to file your Income Tax Return, to claim this refund.
Income Tax Return is essential for making any investment and goes to prove that you have a valid source of income to make such investment.
Avoid various Penalties / Fees / Penal Actions under the Income Tax Laws
|Sr. No.||Type Of Form||Fees|
|1||Single form 16- Salary Income, Housing Interest and Other Income||Rs 300 + GST|
|2||Multiple form 16 – Salary, Rental Income & Housing Interest and Other Income.||Rs 400 + GST|
|3||Single / Multiple form 16 – Salary, Rental Income & Housing Interest , Capital Gain Sale of Property and Other Income||Rs 750 + GST|
|4||NRI and Foreign Income||Rs 2500 + GST|
|5||Income Tax return filing – For business owner who want to file their return under presumptive taxation||Rs 1500 + GST|
|Sr. No.||Head / Category||Document / Information Needed|
|1||Income from Salary||Form 16|
|2||Income from Salary||In absence of Form 16, Fill up the Salary Details Excel sheet Templete|
|3||Rental Income / Housing Loan Deduction||Rent Agreement|
|4||Rental Income / Housing Loan Deduction||Rent Receipts.|
|5||Rental Income / Housing Loan Deduction||Please Highlight the Rent Receipts entries in the Bank Statement.|
|6||Rental Income / Housing Loan Deduction||Property Tax Paid Receipt.|
|7||Rental Income / Housing Loan Deduction||Housing Loan Statement And Interest Certificate.|
|8||Rental Income / Housing Loan Deduction||Detailed Address Of Rented Property.|
|9||Rental Income / Housing Loan Deduction||Name and PAN Of the Tenant.|
|10||Income Of Other Sources||Certificate of Fixed Deposit Interest Received and Accrued.|
|11||Income Of Other Sources||Details Of Dividend Income Received from Shares|
|12||Income Of Other Sources||Details Of Dividend Income Received from Mutual Funds.|
|13||Income Of Other Sources||Details Of Commission / Brokerage.|
|14||General Documents||All bank Statements & Pass Books|
|15||General Documents||PPF Statement /Passbook.|
|16||General Documents||Copies Of Tax Saving Investments Such As LIC,Mediclaim, NSC,TAX, NPS, Tax Saving mutual Funds, etc|
|17||General Documents||Education loan - Certificate & Statement.|
|18||General Documents||Receipt Of Donation Given|
|19||General Documents||All Property Transaction Documents - Sold & Purchase.|
|20||General Documents||Shares Investment - Purchased And Sold.|
|21||General Documents||Mutual Fund Investment Purchased & Sold.|
|22||General Documents||Fixed Deposite Receipts & Interest Statement|
|23||General Documents||Certificate of Fixed Deposit Interest Received and Accrued|
|24||General Documents||List Of Vehicle Details Purchased And Sold.|
|25||General Documents||Document Relating Investments Valuable Purchases and Sold (E.g. Gold, Ornaments, etc)|
|26||General Documents||Details Of Expenditure on Foreign Travel|
There are 2 types of taxes in India – Direct tax and Indirect tax.
Direct tax is a tax that is calculated and paid directly on your Income. Income tax is a direct tax. Direct Tax is proportional to the income of the person.
Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service Goods and Services Tax (GST) is an important and significant Indirect Tax.
Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India). The tax paid or deducted on these incomes is called the income tax.
Form 16 is a TDS certificate issued by an employer to his employee when TDS is deducted by the employer. The employer deducts this tax on behalf of the Government and after deducting deposits the tax to the Government. The employer is then required to give a certificate to the employee giving the details of tax deducted. This certificate is called the Form No. 16 or just Form 16.
If no TDS has been deducted then, the employer may not a Form 16.
An income tax return (ITR) is a form which you need to fill and submit it electroncially thru the tax Department website. In this form details of your income and taxes is to be given. The income tax return forms are in various formats viz ITR-1, ITR-2 etc. Each form depicts a separate category of Income tax payers.
The tax returns must be filed every year and must be filed on or before the due date.
Some of the commonly observed tax return filing mistakes –
If I fail to furnish my return within the due date, will I be fined or penalized?
It is mandatory to file income tax returns in India if any of the below conditions are applicable to you (as per the Income Tax Act)
|For individuals below 60 years|| |
Rs 2.5 Lakhs
|For individuals above 60 years but below 80 years||Rs 3.0 Lakhs|
|For individuals above 80 years|| |
Rs 5.0 Lakhs