Income Tax Return Filing

What is an income tax return

An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. This procedure of filing income tax returns is referred to as income tax filing. While filing the actual return, the total amount that should go to the government as income tax is calculated. If you've paid more tax than needed for the financial year, you'll be refunded by the income tax department. Sometimes, you may also see that you have underpaid taxes for the year. In such cases, you must pay the remainder of the tax, and file your income tax returns.  Income tax return form ranges from ITR 1 to ITR 7, used for different types of income. Some income tax return forms are longer than the others, and they may need additional disclosures such balance sheet and profit and loss statement.

What are the details you need when you're e-filing your income tax returns

• ● You'll need to produce basic information such as PAN, Aadhar card number, and current address.
• ● Details about all the bank accounts you've held in the given financial year. This is a mandatory disclosure you must make for e filing your income tax returns.
• ● Details about your income from salary, fixed deposits, savings bank account, etc.
• ● Information of all the deductions you've claimed under Section 80.
• ● You'll also need to produce tax payment information such as TDS and advance tax payments.

Can I file Tax Returns for years before online

• ● Yes, in any given financial year, you can file for the last two years. For e.g. in FY 2017-18, you can file for both FY 2016-17 and FY 2015-16 online.

Why you file income tax returns

Irrespective of whether you live in India currently or not? Filing of an Income tax return is compulsory, if your total Indian income exceeds Rs.2,50,000 in a year. Even, if you don't meet the threshold limit of Rs.2,50,000/-, it's a good sign to manual file or e-file your income tax return. An income tax return is an important document that you must produce at the time of availing a loan facility from the Bank or NBFC Company, as it is reflects your financial prosperity. An income tax return is a proof of your income shows your capacity to repayment of a loan. If you are planning to go abroad for higher studies, or are about to take up a job outside of India, you'll need at least three years' filed income tax returns to show as proof of income. During processing of your visa application it may request you for producing this financial information to evaluate your financial health, which in return shows that you can support yourself on your own in their country.