Income Tax Return
About Income Tax Return
Income Tax Return is a form which is used to file the income tax with the Income Tax Department.
Income tax is a tax imposed by the Central Government on income of a person.
Filing income tax is every citizen’s responsibility. The IT department verifies these declarations of income and if any amount has been paid in excess, the department refunds the amount to the assessee’s bank account. All entities are required to file the taxes on time to avoid penalty.
Importance of filling IT Return for individual and others
- Loans: Bank loans like education loans, vehicle loans, personal loans, can be availed easily as they require last three year’s IT returns.
- IT Refunds: A taxpayer becomes eligible for tax refund when an excess amount of tax is paid than the actual tax liability. In order to claim the refund the taxpayer must have filed the returns within the due date.
Who should file income tax return?
- Every company, be it Private limited, LLP or partnership irrespective of the income or loss must file IT returns
- Individuals received income from mutual funds, bonds, stocks, fixed deposits, income from interest, house property,etc
- Individuals receiving income from property under charitable trusts, religious trusts or income from voluntary contributions
- Individuals or companies who want to claim tax refunds
- Salaried persons whose gross income exceeding the exemption limit