Income Tax Return
When a person completes his first year at the job, he gets eligible for filing Income Tax Return. In India, before filling ITR it is required to disclose to the Income Tax Department, at the end of the financial year, in a proper format, as prescribed by the Government of India. A person has to give a detailed summary of all of the incomes he/she has scored at the end of the year i.e. 31st March.
What is Income Tax Return?
A statement, that is duly signed, affirmed by an individual, which shows the true statement of his/ her income from the last financial year is known as Income Tax Return.
It is quite true that a person declares his earnings and must have paid the due taxes from his earnings. Even a person can enjoy income from other sources as well as interest coming from a savings account, dividends from shares of the companies, cash income coming from a part-time job, fees, or rent. The Government of India manages the statement of the income of the taxpayer in the form of a Tax Return Statement, that comes in a prescribed format.
Last year the Income Tax authorities declared some guidelines for filing income tax returns.
- All of the businesses must file their income tax return through e-forms.
- Taxpayers with their annual income of Rs 10 lakhs to take the online approach.
- For the taxable income above Rs 5 lakhs, the lower income tax limit has been decreased by Income Tax authorities.
List of Documents required to submit while filing Income Tax Return:
Permanent Account Number: The first step for filing the income tax return is to know the PAN number. Cross-check your PAN number online with the Income Tax department before you start to fill your Income Tax return on the website of the Income Tax department.
Form 16: Form 16 is the form/statement that is issued by the employer of the company. This statement contains the details of the salary and the amount of salary that is taxable and is calculated after certain allowances.
Bank statements: A person must declare all of the incomes that are coming from various sources like interests coming from bank savings deposits, fixed deposits, and debentures in the last financial year in ITR(Income Tax Returns).
Tax Certificate Deducted at source: After verifying the TDS deduction, a person must put all of the TDS entries in the Income Tax Return to reduce the tax liability
Form 26AS: It is a statement of the income tax statement received by the IT department. It contains the statements of the tax credits reflecting the voluntary tax payments in addition to TDS(Tax deducted at source).
Proof of Exempted Investments:
- Investments under the Life Insurance and PPF are eligible for tax deductions.
- Payment done as the principal amount of the Housing Loan is eligible for an upper limit of 1 lakhs.
- Donations done in the name of the registered trusts and charities are eligible for tax deductions.
- Interest paid on the Education Loan for higher studies is eligible for Income tax return. Another amount available for deduction is medical insurance premiums paid for family and parents.
- Capital gains on stocks in trading. A trading statement is required that has to be tallied with the Brokerage account.
These are the documents and proofs that are necessary for claiming Tax returns from the IT department in India.
