Facts about Filling an Income Tax Return
In simple words, an income tax return is a small percentage that the government takes from our income. As the law of the nation we live in, we are liable to pay this money out of our income. This money which is deducted from our income is called tax. We pay income tax only when we are liable to do so. Taxable income is taxed on all individuals, Hindu Undivided Families (HUFs), businesses (including LLPs), professionals, a municipal government and any other workers covered under government regulation. The position of his pay scale under these rules determines the tax status of a person. Every person who meets the criteria to be considered an Indian resident is expected to pay tax on his/her worldwide income. Taxpayers should follow the guidelines while preparing and submitting their tax return (ITR) every year.
How do I get my money back if I pay extra tax?
Before requesting a refund of overpaid taxes, be aware that you have a deadline to meet. To be eligible for a refund, you must file your tax return for the relevant assessment year within the specified time frame. The financial year following the previous financial year is the assessment year.
What is Income Tax Return?
Taxpayers in India have to submit an ITR to the Income Tax Office. The liability of the taxpayer is determined by the amount of money made by him. Income tax refunds are available when the individual's return shows that they have paid too much tax in a given year.
What is Income Tax Return Filing?
The Income Tax Department of India uses Income Tax Return Forms to obtain information from individuals about their earnings and taxes payable by them for the previous year. The details of a taxpayer in an ITR should be relevant for the financial year from 1st April to 31st March of the following year. Earnings can come from a variety of sources, including salaries, commercial profits, the sale of real estate or other assets, dividends or capital gains, and interest. Income Tax Department will reimburse you if you have paid too much tax in a given year.
Is it mandatory for everyone to submit ITR filing?
If you earn more than the amount exempted from taxation by the government, you will need to file tax returns as per the tax bracket for each year. You may be penalized for filing income tax returns beyond the required date, which may affect your chances of getting a loan or visa.
Is it necessary to submit Income Tax Return?
If your income exceeds the basic exemption limit set by the Indian tax authorities, you will need to file your income tax return. Taxpayers have no way of saying how much tax they pay because the rate is set in stone. In addition to paying late penalties, delays in submitting your tax return can hurt your ability to secure a loan or visa for travel.
Under what circumstances should a taxpayer file ITR?
Individuals and businesses should pay income tax only if they fall in the specified income bracket as defined by the Tax Act.
The following organizations and businesses must file their income tax returns on a mandatory basis in India.
┬╖┬а┬а┬а┬а┬а┬а┬а┬а No matter how much profit or loss a company makes during the year, it still generates income
┬╖┬а┬а┬а┬а┬а┬а┬а┬а People who want to get refund on taxes they have paid in excess of what they are entitled to pay
┬╖┬а┬а┬а┬а┬а┬а┬а┬а Wealthy persons who have assets or financial interests outside India
┬╖┬а┬а┬а┬а┬а┬а┬а┬а Transactions carried out in India by foreign entities that are eligible for treaty benefits
┬╖┬а┬а┬а┬а┬а┬а┬а┬а NRIs whose annual income in India is more than тВ╣ 2.5 lakh.
With this background knowledge, let us see who is required by law to file income tax return each year as an individual and as an organization.
┬╖┬а┬а┬а┬а┬а┬а┬а┬а The Internal Revenue Code mandates that deductions must not reduce income.
┬╖┬а┬а┬а┬а┬а┬а┬а┬а Although it may have lost money during this period, it must still be registered as a business and have year-to-date income
┬╖┬а┬а┬а┬а┬а┬а┬а┬а A taxpayer seeking additional income tax or refund of tax deducted from one's annual income
┬╖┬а┬а┬а┬а┬а┬а┬а┬а a person who has a financial interest outside the country
How can you check your ITR status online?
You can easily track the progress of your IT return after submitting it on the e-filing website of Tax Academy. Some simple ways to verify your ITR status can be seen on the website, depending on whether you have an account or not.
When you do not have a login, you can access the ITR by clicking on the ITR Status link on the left side of the website. Your PAN number, ITR acknowledgment number and captcha code will be entered on the next page. Once you've entered your information, you'll see if you need to file a tax return.
Access the website through your username and password. After that, select 'View Return or Form' from the dropdown menu. Select the tax year and related tax return from the dropdown menu. After that, you will be able to see whether your Income Tax Return has been processed or verified.
