Income Tax Return Filing Online
How Does Income Tax Return Filing Online Work For You?
This document provides details about the income tax payments made by a taxpayer. Filing this form facilitates the process of obtaining loans, applying for visas, and helps in avoiding any potential penalties.
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E-filing Income Tax Returns in India – An Overview
The Income Tax Return is a document used to submit one’s income tax to the Income Tax Department. Income tax is a tax levied by the Central Government on an individual’s earnings.
Filing income tax is a fundamental obligation for every citizen. The Income Tax Department reviews these income declarations, and if an excess amount has been paid, the department issues a refund to the taxpayer’s bank account. Timely tax filing is mandatory for all entities to prevent incurring penalties.
The form that contains information of income and tax paid of an assessee is called Income Tax Return. The Income Tax Department of India has various forms for it such as ITR 1, ITR 2, ITR 3, ITR 4S, ITR 5, ITR 6 and ITR 7.
ETaxwala offers the best service and helps you with the correct form to fill on the exact time.
File Income Tax Return
Things to remember during income tax return filing
- Avoid delaying the filing of your Income Tax return until the due date.
- Always collate all the documents needed to file ITR
- Selecting the appropriate Income Tax return form is crucial.
Why file IT returns?
The advantages of filing for IT returns are:
- Loans:Bank loans like education loans, vehicle loans, personal loans, can be availed easily as they require last three year’s IT returns.
- Visa:As Immigration centres scrutinize many documents and IT returns proofs is a mandatory document for visa applicants.
- Avoid penalties:Hefty amounts would be charged for non-filing of income tax returns and hence it is always better to file it to avoid legal repercussions.
IT Tax Refunds & Taxpayers Responsibility
A taxpayer becomes eligible for a tax refund when they have paid more tax than their actual tax liability. To claim the refund, it is essential for the taxpayer to have filed their returns within the due date.
Taxpayers often receive notices from the Income Tax department to ensure they complete the filing process promptly. Any losses related to house property, depreciation, business, or other losses that cannot be offset against current income can be carried forward to subsequent years for potential deductions.
Due dates for filing IT return
- July 31 is the deadline for firms or individuals who are not subject to audit requirements to file their income tax returns.
- September 30 is the deadline for companies and other entities that are subject to audit requirements to file their income tax returns.
- March 31 is the deadline for individuals and companies filing belated income tax returns.
E-Taxwala recommends utilizing Google Calendar to receive early notifications of due dates and ensure timely Income Tax Return (ITR) filing.
Income Tax Return acknowledgment
Once the Income Tax Return (ITR) is filed, an acknowledgment slip in duplicate is issued. This slip typically contains details such as:
- Permanent Account Number
- A brief statement of taxable income
- Tax paid
Who should file income tax return?
IAs per the Income Tax Department the entities required to file IT returns annually are:
- Every type of company, whether it’s a Private Limited, Limited Liability Partnership (LLP), or partnership, is required to file Income Tax returns regardless of whether they have income or incurred losses.
- Individuals who receive income from various sources such as mutual funds, bonds, stocks, fixed deposits, interest income, and house property, among others, are required to file Income Tax returns.
- Individuals receiving income from property under charitable trusts, religious trusts, or income from voluntary contributions are also obligated to file Income Tax returns.
- Individuals or companies that intend to claim tax refunds must file Income Tax returns.
- Salaried individuals whose gross income, before deductions under sections 80C to 80U, exceeds the exemption limit are also required to file Income Tax returns.
- All individuals who have foreign income, foreign assets, are Non-Resident Indians (NRIs), or are tech professionals on onsite deputation are obligated to file Income Tax returns.
- Individuals who have transitioned from one job to another are also considered eligible.
For business tax return filing:
The Income Tax Department of India has established regulations for all businesses operating within the country, mandating annual income tax filings. Additionally, businesses have the option to file TDS returns and make advance tax payments as necessary to ensure compliance with IT rules and regulations.
Proprietorship Tax Return Filing
A proprietorship firm is operated by a single individual known as the proprietor. In a proprietorship, there is no distinction between the business owner (proprietor) and the business itself, as it is not considered a separate legal entity. Consequently, the process of filing Income Tax Returns (ITR) for a proprietorship is identical to that of the proprietor, as they are treated as one and the same for tax purposes.
Proprietors are obligated to file Income Tax returns on an annual basis, and the procedure is identical to individual income tax filing.
Requirements for filing proprietorship tax returns:
Proprietors who are under 60 years of age and have an income exceeding Rs. 2.5 lakhs are required to file proprietorship tax returns. For proprietors aged 60 years or older but less than 80 years, the threshold for filing is when their total income exceeds Rs. 3 lakhs.
Proprietors who are 80 years of age or older are required to file their Income Tax returns if their total income exceeds Rs 5 lakhs.
Partnership Firm Tax Return Filing
According to the Income Tax Act, all partnership firms are considered separate legal entities and are subject to tax rates that are comparable to those applicable to Limited Liability Partnerships (LLPs) and companies registered in India.
Requirement for filing partnership firm tax return
Regardless of whether a partnership firm has incurred income or losses, it is mandatory for them to file Income Tax returns. If the partnership firm has been commercially inactive and has no registered income, they should still file a NIL income tax return within the prescribed deadline. This ensures compliance with tax regulations.
LLP Tax Return Filing
All Limited Liability Partnerships (LLPs) are recognized as distinct legal entities, and their income tax rates are akin to those applicable to all registered companies in India. As per the Income Tax Act, LLPs are obligated to file their tax returns regardless of whether they have incurred a profit or loss in that year. Even if an LLP has had no business activity or registered income, it must file a NIL income tax return in a timely manner to fulfill its tax obligations.
Company Tax Return Filing
All forms of business structures, including Private Limited Companies, Limited Companies, Limited Liability Partnership (LLP) firms, and One Person Companies, are registered under the Ministry of Corporate Affairs in India. As per the Income Tax Act, it is mandatory for these companies to file Income Tax returns in accordance with the prescribed regulations.
Requirement for filing company tax returns
Any company that is registered with the Government of India and conducts operations within India is obligated to submit its filed Income Tax returns. This requirement applies even to companies that have remained dormant with no business transactions and no registered income or expenses. Compliance with income tax regulations is necessary for all registered companies in India.
Documents required for Income Tax Filing in India
To fulfill Income Tax filing requirements in India, the following documents are typically necessary:
- Bank statements
- Proof of investments
- D.S. Certificates in Form 16 or 16A as applicable
- Documents on purchase and sale of investments/assets
- Challan of tax paid such as advance tax or self-assessment tax
- If PAN is applied but not received, a copy of filed PAN application and its acknowledgment
- In case not applied for PAN, a PAN application form duly filled in and two passport size photographs
- For businesses – a copy each of the audit report, balance sheet, trading, profit and loss account, personal account of proprietor or partners
- Statement of receipts and payments when no regular books are maintained
- Receipts of payment of insurance premium, provident purchase of NSCs, new equity shares, mutual fund, NSS, donations, etc. to support claimed deductions