What is Income Tax?
In India, in order to maintain tax compliance, anyone making more than Rs 2,50,000 annually is required to register their income taxes. A person should still file their taxes and indicate that they have no taxable income, even if they have no income at all. Taxpayers are required to declare all of their income when submitting their taxes. It could come from a job, the sale of capital assets like stocks and real estate, or from other sources.
Who is eligible to pay?
During the filing window, individual income tax returns can be submitted. It usually begins on April 1 and ends on July 31, though there might be one- or two-month extensions offered. PAN and Aadhaar cards issued by the Income Tax Department, together with Unique Identification, are required for taxpayers.
authority in India, correspondingly. Taxpayers can use the services of chartered accountants if they are unsure about their taxes. Maintaining tax compliance requires accurate tax filing.
Income Tax Return
The Income Tax Department of India receives information about your income and the applicable tax on an Income Tax Return (ITR). According to Indian income tax legislation, every person and business that receives income is required to file an IT return. It helps with the declaration of tax liabilities, taxable income, and any claimed tax deductions.
Firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried people are required to file income tax returns by the deadline; failure to do so will result in a penalty.
What is income tax return filing?
A taxpayer must report all of the income he made throughout the fiscal year through the ITR filing process. The official gateway of the Income Tax Department is where individuals can file their taxes.
Type of ITRs
- ITR 1: It should be used by individuals earning an annual income of less than Rs 50 lakh through salary/pension and from only 1 house property.
- ITR 2: For those who have made money through the sale of assets or property, there is an ITR-2 Form. Those who make their living outside of India can also benefit from this form. This form can often be used by individuals or Hindu Undivided Families (HUF) to file their ITR.
- ITR 2A: For the 2015–16 tax year, a new income tax return form called ITR–2A was introduced. This form can be used by an individual taxpayer or by a Hindu Undivided Family (HUF).
- ITR 3: For an individual taxpayer or a Hindu Undivided Family that is a partner in a firm but does not do business via the firm, the ITR-3 Form can be helpful. This also holds true for people whose earnings from the company's operations are zero.
- ITR 4: People who own their own businesses or make a living from their jobs can benefit from using this type of ITR form. There are no revenue restrictions on this form, making it suitable for all kinds of businesses, endeavours, or professions.
- ITR 5: The only forms that businesses, local governments, cooperative organisations, artificial judicial persons, and bodies of individuals utilise to file income tax returns are the ITR-5 form.
- ITR 6: Apart from businesses or organisations that assert Section 11 tax exemption, all businesses use the ITR-6 form. Organisations whose revenue is obtained from property used for charity or religious purposes are eligible to claim Section 11 tax exemptions. The only way to file this specific income tax return form is online.
- ITR 7: This form is required to be used by entities claiming an exemption as colleges, universities, scientific research institutions, religious or charitable trusts, political parties, etc.
Due Date for ITR Filing and Penalty for Late Submission
ITR filing last date for Financial Year 2023-24 (AY 2024-25) is July 31, 2024. However, if you miss filing within the due date, you can still file a belated return before December 31, 2024.
You have until December 31st of the assessment year to file a belated return if you miss the ITR filing deadline. There is a five-rupee penalty for the delay. On the other hand, if an individual's total income is less than Rs. 5 lakh, Rs. 1,000 will be required as payment.
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