Article
What is ITR or Income Tax Return?
Income Tax Return or ITR is the proof that you have paid your Income Tax as per the liability for the relevant Financial Year. ITR contains the details of a taxpayer’s annual income as well as the total tax liability. Every year a lot of Indians, who have taxable income pay Income Tax and file Income Tax Return for the same. Earlier, the taxpayers used to file their Income Tax Return offline, but now they have the provision of filing it online.
E-filing of Income Tax Return helps a taxpayer in getting tax refunds early, if they are eligible for any. In case, a taxpayer fails to file Income Tax Return within the stipulated time, then he/ she will have to pay a heavy penalty or face certain legal consequences.
What is Income Tax Return?
Income Tax is a direct tax, that is annually imposed on the taxpayer against their annual income, by the Government of India. Income Tax is imposed on both earned as well as unearned income. Earned income is the salary, wages etc, unearned income is interest income, rent etc. Every Indian who earns an income have to pay income tax at the end of the relevant Financial Year, if their income is above the exempt limit. Moreover, the total income is taxed as per the income tax slab.
What is called as Return of Income?
A Return of income, is a defined detail of the income earned by a taxpayer from five major sources of income like, Salary, House Property, Business and Profession, Capital Gain and income from other source, in the relevant financial year. This in turn can be presented to the Income Tax Department. There are different forms for incomes of different sources and nature that are easily available on the online portal of the Income Tax Department.
E-filing of Income Tax Return is mandatory for everyone, who has taxable income in India, during a particular Financial Year. After every Union Budget, the Income Tax Slab changes, as per the announcements made by the Union Finance Minister, keeping people of different age groups in mind.
