In simple words, an income tax return is a
small percentage that the government takes from our income. We are liable to
pay this money out of our income as a law of the nation we live in. This money
which is deducted from our income is called tax. We pay income tax only if we
are liable to do so.
Every
person who meets the criteria to be considered an Indian resident is expected
to pay tax on their worldwide income. Taxpayers must adhere to guidelines when
preparing and submitting their tax returns each year (ITRs).
Before
requesting a refund of overpaid taxes, keep in mind that you have a deadline to
meet. You must file your tax return for the relevant assessment year within the
specified timeframe to be eligible for a refund. The financial year (FY) after
a previous financial year is the assessment year.
Taxpayers in India must submit an ITR to the Income Tax Office.
The liability of a taxpayer is determined by the amount of money they make.
Income tax refunds are available if the individual’s return demonstrates that
they have paid too much tax in a given year.
The Income Tax Department of India uses the Income Tax Return form
to receive information from individuals about their earnings and the taxes they
owe for the previous year. A taxpayer’s statement in an ITR should be relevant
to the fiscal year from April 1 to March 31 of the following year.
Earnings
can come from various sources, including salaries, commercial profits, the sale
of real estate or other assets, dividends or capital gains, and interest. The
Income-tax department would reimburse you if you paid too much tax in a given year.
If you earn more than the amount free from taxation by the
Government, you must file a tax return according to the tax brackets for each
year. You may be penalized for Income Tax Return Filing beyond the required
date, which could affect your chances of acquiring a loan or visa.
You must
file your income tax returns if your income exceeds the basic exemption limit
set by the Indian tax authorities. Taxpayers have no say in how much tax they
pay because the rate is set in stone. In addition to the late filing fines, a
delay in submitting your tax returns might harm your ability to secure a loan
or a visa for travel.
Individuals
and businesses must pay income tax only if they fall into specified income
brackets defined by the Tax Act.
The following organizations and businesses must file their Income Tax Return Filing on a
mandatory basis in India.
·
Individuals who make more than ₹ 2.5 lakh in a
financial year are included regardless of their age. The maximum rises to ₹ 3 lakhs for people
in their 60s to 79s, and ₹5 lakhs for people in their 80s and older. Sections 80C to 80U and
additional exemptions under section 10 should be subtracted from the gross
income before determining the final taxable amount
·
No matter how much earning a company makes or loses during the
year, it still generates income
·
Those who want to get a refund on the taxes they’ve paid more than
what they’re entitled to pay
·
Affluent individuals who have assets or financial interests outside
of India
·
Transactions made in India by foreign entities that are eligible
for treaty benefits
·
NRIs with a yearly income in India of more than ₹2.5 lakh.
With this background knowledge, let’s look at who is required by
law to submit an Income Tax Return Filing each year, both as an
individual and as an organization.
Individuals
younger than 59 with an annual income more significant than ₹ 2.5 lakhs are eligible to apply. Senior
persons aged 60 to 79 are exempt from paying income tax on amounts up to ₹ 3 lakhs, while those aged 80 and more are
exempt from paying income tax on payments up to ₹ 5 lakhs. Section 10 of the Internal Revenue Code mandates that
deductions should not reduce income.
·
Although it may have lost money over the period, it must still be
registered as a business and have a year-to-year income
·
A taxpayer seeking a refund of excess income tax or tax deducted
from one’s yearly earnings
·
An individual who has a financial interest outside of the country
·
Treaty-benefitting Indian corporation that conducts business in
the country
·
NRIs who make more than ₹ 2.5 lakh per year
are included in this category.
You may easily track the progress of your IT Return on
the e-filing website of the Government of India after you’ve submitted it. A
few simple ways to verify your ITR status can be found on the website,
depending on whether or not you have an account.
When you don’t have a login, you can access the ITR by clicking
on the ITR status link on the left-hand side of the website. Your PAN number,
ITR acknowledgment number, and captcha code will be entered on the next page.
Once you’ve entered your information, you’ll see if you need to file a tax
return.
Access
the website through your username and password. After that, select ‘see returns
or forms’ from the dropdown menu. Select the tax year and the corresponding tax
return from the dropdown menu. After that, you’ll be able to see if your Income
Tax Return has been processed or verified.
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