FAQs on income tax return – You must have heard the name of income tax return and many of you must have filed it too. A lot of changes are being made by the government from time to time in relation to the income tax return, so that a common man does not have to face much trouble in filing the income tax return.
The government also gets most of the revenue from the tax paid by the people, so the government also wants more and more people to file their income tax returns, so that the income of the government can also increase.
Apart from this, the transactions done by the people by filing it also come in the eyes of the government, due to which black money is also not encouraged.
It is also very important for the people of any country to be aware of the tax rules imposed in their country, so that they do not have to face any unnecessary trouble.
In today’s article (FAQs on income tax return), we will discuss about the basic rules related to income tax, so that even a common man of India can understand the rules related to income tax.
Q.1 – What is Income Tax Return?
Ans. Income tax return is called ITR in short and income tax return in Hindi.
It is such a document, which contains complete information about the income earned by a person in a financial year, the details of which are given by him to the Income Tax Department. You also have to give complete information about the sources from which you have earned this income, such as salary, business etc.
ITR contains all the details of tax paid by you, TDS deducted, advance tax, refund etc. Apart from this, you can also set off and carry forward your losses .
Income tax return has to be filed once in a year.
Q.2 – For which period income is reported in Income Tax Return?
Ans. You have to report the income of one financial year in your income tax return.
The financial year starts from 1st April and ends on 31st March. For example, the period from 1 April 2020 to 31 March 2021 is called the financial year 2020-21. You have to report the income earned during this entire period in your income tax return.
Q.3 – When is it necessary to file Income Tax Return by you?
Ans. Whether it is mandatory for you to file income tax return depends on certain conditions, such as –
If you are an individual, then you will be required to file income tax return if your total income exceeds 2 lakh 50 thousand in a financial year;
If a person has deducted your TDS, then you cannot claim its refund without filing income tax return, so you have to file ITR to claim refund;
In case of Company, Firm, LLP, you will be required to file ITR, in both profit or loss case.
For more information about all the cases of Compulsory Income Tax Return Filing, you can see – When is it mandatory to file Income Tax Return?
Q.4 – Which ITR forms are used to file Income Tax Return?
Ans. To file your income tax return, you have to first select the ITR forms. In which ITR forms you have to file income tax return, it depends on the source and status of your income.
There are 7 ITR Forms mentioned in the Income Tax Act, in which income tax returns can be filed.
like –
ITR 1 – It is filed when there is income from salary ,
ITR 2 – It is filed when there is income from capital gains ,
ITR 3 – In case of income from business or profession ,
On opting for return filing in ITR 4 – Presumptive Scheme ,
ITR 5 – Firm, LLP, AOP/ BOI, artificial person, co-operative society, filed by local authority,
ITR 6 – Applicable to companies
ITR 7 – Filed by Trust, NGO.
For more information about all these forms, see – Details of all forms of tax return filing (NEW FORMS)
Q.5 – How to file Income Tax Return?
Ans. Income tax returns are filed online by all taxpayers, however senior citizens can file ITR 1 and ITR 4 offline as well.
To file online, first you have to visit https://www.incometaxindiaefiling.gov.in/ , then login to it with the help of your PAN number.
You can file ITR 1 and ITR 4 online on the income tax portal, but to file the rest of the ITR forms, you have to download the relevant forms from the portal.
After downloading, you will have to fill the ITR forms offline and after filling it completely, you will have to upload it by login to the income tax e-filing portal.
Q.6 – What to do after uploading Income Tax Return?
Ans. Even after uploading the income tax return, your return filing work is not over. After uploading you have to verify it.
Online and offline methods have been given by the Income Tax Department to get the income tax return verified, which is –
Income tax return can be verified with Aadhaar OTP.
through internet banking
Through electronic verification code,
By signing ITR – V and sending it to the specified address.
Q.7 – What is ITR – V?
Ans- After filing the income tax return, it has to be verified, unless it is verified, the process of income tax return filing is not completed.
ITR – V (income tax return verification) is a slip, which contains the name, address, PAN number of the person whose return has been filed. In addition, there is also an acknowledgment number of the return, which is unique for each return.
ITR – V has to be signed by the taxpayer and sent by normal post or speed post to the address mentioned in it. ITR-V has to be sent to the Income Tax Department within 120 days of return filing, after which it will not be considered valid and it will be considered that you have not filed your income tax return.
However, if you get your return verified online, you are not required to send ITR-V.
Q.8 – Do I have to submit any document along with Income Tax Return?
Ans- With income tax return, you do not have to submit any kind of documents, such as investment proof, deduction certificates, income proof etc.
However, keep all the documents that you used for filing Income Tax Returns with you, so that you can show them in future when asked by the Income Tax Department.
Also, in some cases, you have to file some forms separately after the return filing, if those forms are not filed, your return will not be processed further.
For example, if you claim relief under section 89, then you are required to file Form 10E. Also, if you claim deduction for payment of rent under section 80GG, you will have to file Form 10BA .
Q.9 – What are the Due Dates for filing Income Tax Return?
Ans- The due dates for filing ITR are different for different taxpayers, such as –
Individual – 31 July
Company – 31 October
Persons whose tax audit is to be done – 31 October
Partners of the firm whose accounts are to be audited – 31 October
Taxpayers who have to submit report in section 92E – 30 November
All other taxpayers – 31 July
Q.10 – Can Income Tax Return be filed even after Due Dates?
Ans – Income tax return can be filed even after the due dates mentioned above, however, if you file after the last date, you will have to pay interest and penalty.
Income tax returns can be filed after due dates but before the end of the relevant assessment year. For example, the return of the financial year 2020-21 can be filed before the end of the relevant assessment year 2021-22 (31 March 2022).
Q.11 – What is the penalty for filing Income Tax Return after Due Dates?
Ans – Both interest and penalty are levied on you for late filing of income tax return. If your tax liability continues after the last date, you will be charged interest in section 234 A/B/C.
Apart from this, a penalty of 5000 to 10 thousand is imposed on you under section 234F, but the amount of penalty will be 1000 only if your total income was less than 5 lakhs.
Q.12 – What are the disadvantages of filing income tax return after the due date?
Ans – It is very important to file income tax return on time, because if you do not do so, you also have to bear a lot of losses.
like –
You have to pay interest and penalty on late filing of ITR;
If there are any losses in the business or capital gains head, you will not be able to carry forward them to set off in subsequent years ;
If your income tax refund is being made, then the interest earned on this refund on late filing gets reduced.
Q.13 – If you do not have any income and you are only incurring loss in business, then will it be mandatory for you to file ITR?
Ans. If you are working as a company or firm, then it will be mandatory for you to file income tax return, whether you have profit or loss.
Apart from this, if you are an individual, then it will not be mandatory for you to file ITR only in case of loss, but if you want to set off your losses from the income of your other business in the coming years, then It will be mandatory for you to file income tax return on time.
Q.14 – If there is a mistake in filing the Income Tax Return, can this mistake be rectified?
Ans. Section 139(5) of the Income Tax Act gives you the option to rectify a mistake in your income tax return.
If any mistake is made in your return filing, you can rectify the mistake by filing a revise return under section 139(5). However, if your revise return also makes a mistake, you can rectify it by filing a revise return again.
Q.15 – Do you have to file return even in case you have paid all your taxes?
Ans. Income tax return filing and paying tax are two different things. Even if you have paid all your taxes, the responsibility of filing your ITR remains.
Whenever you pay income tax, you report your income in ITR and pay tax on it accordingly. After the return filing, the Income Tax Department checks the details given in the return filed by you and processes your return if correct.
Therefore, return filing is a two-way job, which is done by both you and the department. If you do not file your return even after paying the tax, you can be liable for penalty under section 234F.
