INCOME TAX FILING
Income Tax Filing in India:
Income tax filing in India is an annual process where individuals and businesses report their income, claim deductions, and pay taxes on their earnings. The Income Tax Department mandates filing of tax returns by a specified deadline, typically July 31st for individuals and September 30th for businesses. Filing income tax returns ensures compliance with tax laws, enables the taxpayer to claim refunds, and helps in financial documentation for loans or visas.
Supporting Documents for Income Tax Filing:
1. PAN Card: Primary identification number for tax purposes.
2. Form 16: Issued by employers, showing salary details and TDS (Tax Deducted at Source).
3. Form 16A/16B/16C: TDS certificates for income other than salary (e.g., interest, rent).
4. Bank Statements: For interest income and transactions.
5. Investment Proofs: For deductions under Section 80C, 80D, etc. (e.g., LIC premiums, PPF contributions, tuition fees).
6. Housing Loan Statements: For interest and principal repayment details.
7. Capital Gains Details: For sale of property, shares, etc.
8. Form 26AS: Annual tax statement from the Income Tax Department showing all tax credits.
Types of ITR Forms:
1. ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, other sources (interest, etc.), and agricultural income up to ₹5,000.
2. ITR-2: For individuals and HUFs not having income from business or profession.
3. ITR-3: For individuals and HUFs having income from business or profession.
4. ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) with a total income of up to ₹50 lakh and having income from business and profession computed under sections 44AD, 44ADA, or 44AE.
5. ITR-5: For LLPs, AOPs, BOIs, and other similar entities.
6. ITR-6: For companies other than those claiming exemption under section 11.
7. ITR-7: For persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).
Filing the correct ITR form is crucial to accurately reporting income and claiming eligible deductions. This ensures compliance and can aid in avoiding penalties or scrutiny from tax authorities.