What Is Income Tax Return (ITR) In Gujarat?
Introduction
A lot of buzz gets explode during a particular
month of a year forcing you to file your income tax return and so on. Infect
now a days even government also telecasts advertisement that every citizen
should file income tax return. So in this blog we will focus on what is income
tax return, how you can file income tax return, what type of ITR is applicable
to you, what the last of filing income tax return is and why you should file
ITR.
What is income tax return?
An income tax return is basically the declaration
of your income. This is the statement where you are supposed to report how much
have you earned during a particular financial year, what are your expenses and
what are the investments you had made. The form of ITR consist of various details
such as bifurcation of income in different heads, deductions to be claimed
under various schemes/categories, tax already deducted as TDS, tax payable or
refund to be claimed, any life insurance policies or mediclaime taken and so
on. The details mentioned here are very basic details which is applicable to
almost everyone. Apart from this, the details of ITR depends upon the form of
ITR applicable to you and your business.
There are various types of Income tax returns. So first you have to identify that what kind of ITR is applicable to you and your business. Here’s a list of types of income tax returns.
ITR-1 OR SAHAJ- This Return Form is applicable to a resident
individual whose total income includes: -Income from Salary/ Pension; or - The
income from one house property (excluding cases where loss from previous years
is carried forward); or -Income from other sources (excluding Lottery winnings
and Race Horse earnings); -Agricultural income up to Rs.5000.
ITR-2- This form is applicable to individuals and Hindu
Undivided Families (HUFs) who fall under the below-mentioned categories: Income
of the individual must be more than Rs.50 lakh. Pensions and salaries can be
used to generate income. Income that is generated from house property. If you
win the lottery or win a horse race, you will receive a lot of income. When the
individual is the Director of a company. The agricultural income for the
individual is over Rs.5, 000. Income has been generated from capital gains. There
were any investments in equity shares that were not listed during the year. Foreign
assets and foreign income generate income.
ITR-3- An individual or Hindu Undivided Family who has
income from a proprietary business or is engaged in a profession is required to
complete this form. ITR 3 may be filed by individuals who generate income
from a profession or business. During the reporting period, any
investments in equity shares that were unlisted were taken into account. Suppose
the person is a partner in a firm. When the individual is a Director of an
organization. When income comes from a pension or salary, a property, or
any other source. The business generates a turnover greater than Rs.2 crore.
ITR-4 OR SUGAM- The form is required for individuals, HUFs and
Partnerships (except LLPs) having an income from a business or profession who
are residents. According to Section 44AD, Section
44ADA and
Section 44AE of the Income Tax Act, this is applicable to those who have
elected the presumptive income scheme. The taxpayer will, however, be required
to file ITR-3 if the business has an annual turnover exceeding Rs 2 crore.
ITR-5- This form is applicable to Investment funds,
Business trusts, Estates of insolvents, Estates of deceased persons, Artificial
Juridical Persons (AJPs), Bodies of Individuals (BOI), and Associations of
Persons (AOPs), Limited
Liability Partnerships
(LLPs), and firms.
ITR-6- This form is applicable to any companies that are
not claiming exemptions under Section 11. If a company files an electronic
return under this section, then it must do so electronically.
ITR-7- It may be used by individuals or companies who
have furnished returns under Section 139(4A), Section 139(4B), Section 139(4C),
Section 139(4D), Section 139(4E), or Section 139(4F).
Upon identifying which Income tax return form is
applicable to you, you can move forward to collect required data or information
in order to file the income tax return.
The last date of filing
income tax return is 31st July 2022 for individual taxpayers and HUF
tax payers. For Company/LLP/Partnership firms/Individual audited cases, the due
date of filing income tax return is 30th of Sept-2022.
Now, everyone should know why it is important to
file your income tax returns.
We have shortlisted few reasons why you should
file your ITR.
1) To avail loan or finance from financial institutions/banks
2) To get visa for studying abroad or for travel visa also in some countries
3) To claim refund of tax already deducted
4) To carry forward the losses of your business
5) To avail credit card facility from banks
6) To establish your incomes’ proof
7) To get policies with higher cover
8) To make huge investments
9) To avoid penalties and interest to be imposed on those who do not file income tax returns.
10) To read the above benefits in details please move to our blog section https://onlinechartered.com/10-reasons-why-you-should-file-income-tax-return/.
Conclusion
Now a days the
government is insisting every citizen to file their income tax returns by
themselves by simplifying the forms of income tax returns. But in our view, one
should always consult a professional to file their income tax returns.
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