Income Tax Returns (ITR)

Taxpayers play a vital role in the progress and development of any country, and India is no exception. The Indian government collects taxes from eligible citizens and utilizes the funds for the betterment of society, including infrastructures, facilities, welfare schemes, and other essential resources that uplift citizens’ living standards.

To collect taxes, the government in India employs two methods – Direct Taxes and Indirect Taxes. Direct taxes are collected from eligible taxpayers based on their income earned during a particular financial year. These taxes are collected in two forms – Advance Tax during the financial year and Self-assessment Tax after the financial year ends. Every year, eligible taxpayers in India must file their Income Tax Return, which is a statement of their taxable income, Income Tax calculation, and proof of payment to the government in the form of Advance Tax or Self-Assessment Tax.

Is filing Income Tax Return Compulsory?

Many people wonder if it is compulsory for all individuals to file their Income Tax Return. In India, the government has set certain criteria for filing requirements. Individuals who meet these criteria must file their Income Tax Return. Here is a list of people who are required to file their Income Tax Return in India.”

  • If the person have assets or financial interest outside of India
  • If the person have deposited more than of Rs 1 Crore in its current bank account or more than of Rs 50 lakhs in its saving bank account
  • If the person have its business turnover exceeds Rs 60 lakhs in a year or its professional income exceeds Rs 10 lakhs in a year.
  • If the person having annual total income more than the basic exemption limit of Rs 2,50,000/-
  • If the person, having annual electricity consumption, more than Rs 1 Lacs
  • If the person, having deduction of TDS/TCS for Rs 50,000/- or more in a year In case of senior citizen, or Rs 25,000/- or more in any other case
  • If the person, incurred aggregate expenses on foreign travel for Rs 2 Lacs or more in a year

Benefits to file Income Tax Return

It is mandatory for every individual who is required to file Income Tax Return, to do so. Failure to file Income Tax Return by an eligible person may result in late fees, penalties, and initiation of legal action by tax authorities. Apart from fulfilling the compliance requirements, there are several other advantages of filing Income Tax Return, such as:

Establishing financial credibility for availing Loan and Credit facilities:

Lenders evaluate a person’s income and financial stability based on their Income Tax Return. It serves as documentary evidence of regular income and financial strength, which can help individuals to secure credit facilities like credit cards, overdrafts, cash credits, etc. Credit proving agencies approve these credit facilities based on the Income Tax Returns filed by the person in the previous years.

Claiming Income Tax Refunds:

For certain types of income, such as term deposit interest, dividend, commission, etc., TDS or TCS is required to be deducted at the time of payment. To claim these TDS or TCS amounts, a person is required to file their Income Tax Return.

Hassle-free Visa processing:

Most embassies and consulates require the previous year’s Income Tax Returns to establish a person’s financial strength. They approve VISA applications only after the submission of Income Tax Returns. Filing of Income Tax Return ensures hassle-free visa processing.

Avoiding Penalties and Tax Authorities Actions:

Every eligible person is required to file their Income Tax Return. Non-filing of Income Tax Return attracts penalties under the Income Tax Act.

Eligibility for Government Tenders:

Many government tenders require the submission of Income Tax Returns at the time of application. Sometimes, filing an Income Tax Return becomes a significant compliance factor for becoming eligible to apply for such tenders.

In conclusion, filing Income Tax Return is not only a legal requirement but also has several benefits

Documents required to file Income Tax Return

In process of filing of Income Tax Return, the person required necessary documents, which includes Its Identity documents, Income documents, Tax deduction documents etc. The person should handy all the required documents at the time of filing of its Income Tax Return to make easy and fast filing of ITR. Some necessary documents required for filing ITR are as follows:

  • PAN Card
  • Aadhar Card
  • Salary Slips
  • Bank Account Statements or Passbooks
  • Income Tax Login Id and Password
  • Form 16: It is issued by the employer. It contains the details of salary paid by employer to its employees during a particular year. It also contains the total Tax deducted at source (TDS) on salary by the employer.
  • Form 16A: It is issued by the person deducting TDS on various income such as Commission, Interest, Rent, Contractual business receipts, Advertisement Income etc. It does not includes Salary Income
  • Form 16B: In case of sale of property valued at more than Rs 50 lakhs, purchaser is required to deduct TDS of seller as per applicable TDS provisions. In that case, that purchaser issues form 16B to seller as a proof of TDS deduction on sale of property
  • Investment Proof: for claiming eligible deduction under Income Tax Act against Income, a person should invest amount in eligible investment scheme such as Life Insurance Premium, ULIP, PPF etc. Apart from the investment in investment scheme certain expenses also allowed as a deduction under Income Tax such as Interest paid on Housing Loan, Payment of Principal on Housing Loan, Tuition fess, Employees share under Provident Fund, Contribution towards NPS, Mediclaim including medical expenses on dependent parents etc. One need to have proof of such investment and expenses for claiming deduction under Income Tax.

ITR Form for Filing Income Tax Returns

  • ITR-1: It can be filed by an Individual being a resident, whose total income up to Rs 50 lakhs, under the head salaries, or from one house property, or from other sources such as interest etc, or from agriculture income up to Rs 5 thousand
  • ITR-2: It can be filed by an Individual or HUFs, who does not having income from profit and gains of business or profession
  • ITR-3: It can be filed by an Individual or HUFs, having income from profit and gains of business or profession
  • ITR-4: It can be filed by an Individual, HUFs, and Firms (other than Limited Liability Partnership) being a resident, whose total income up to Rs 50 lakhs and having income from business and profession, computed under section 44AD, 44ADA, or 44AE and agriculture income up to Rs 5 thousand
  • ITR-5: It can be filed by person other than Individual, HUFs, company and the person filing their Income Tax Return through filing ITR-7
  • ITR-6: It can be filed by the companies other than the companies claiming deduction under section 11 of Income Tax Act
  • ITR-7: It can be filed by the persons including companies required to file return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) only, such as religious and charitable trusts, political parties, universities & colleges, scientific research associations etc

How Digi Accounto Can help in Filing Income Tax Returns (ITRs)

Filing Income Tax Returns (ITR) can sometimes be a daunting task for individuals, even though it seems easy. However, with Digi Accounto’s assistance, individuals can now file their ITRs accurately, efficiently and professionally.

Our team of experts has extensive experience in filing ITRs and ensures that every aspect of the income documents is thoroughly examined to ascertain the right amount of tax liability that needs to be paid. We also ensure that every eligible Income Tax deduction is claimed, which helps individuals receive maximum eligible Income Tax Refunds.

At Digi Accounto, we help individuals save on taxes with our expert assistance. By choosing us as your Income Tax Return filing consultants, you can enjoy numerous benefits such as lower tax liabilities, maximum eligible tax refunds, and consultation regarding beneficial investment options etc.

Looking for a reliable and professional Income Tax Return Filing Consultant? Look no further than Digi Accounto. We offer a range of benefits that make us the ideal choice for anyone seeking expert assistance with their ITR filing.

We are Cost Effective

Firstly, we are committed to providing cost-effective services to our clients. In comparison to our competitors, we offer the most affordable prices for filing Income Tax Returns, without compromising on quality. Our team of experienced professionals is dedicated to helping you save money while ensuring that your ITR is filed accurately and on time.

Time Saving

At Digi Accounto, we understand that time is precious. That’s why we prioritize fast examination of your Income records, ascertainment of the right amount of Income and Tax Liability, and filing of the final Income Tax Return. We aim to provide the quickest and most efficient services to save you valuable time and effort.

Customer Friendly Environment

Our friendly and professional team is always available to assist you throughout the ITR filing process. We provide complete professional satisfaction by answering all your questions and providing telephonic and online support to ensure that no query is left unanswered. We ensure that every client receives the highest level of service and assistance possible.

We Make Sure Accurate Filing

Accuracy is a top priority for us at Digi Accounto. We always ensure that your Income Tax Return is filed with utmost precision, which makes you eligible for fast processing, early refunds, and complete satisfaction with our services. Our team of professionals makes sure that you receive the maximum eligible tax refund through a detailed analysis of your Income records and investment proof.

In summary, choosing Digi Accounto as your Income Tax Return Filing Consultant means you can expect expert assistance that is accurate, efficient, cost-effective, and professional. Contact us today to learn more about how we can help you with your ITR filing needs.