Income Tax Return is a form that is used to file the income tax with the Income Tax Department.
Income tax is a tax imposed by the Central Government on the income of a person.
Filing income tax is every citizen’s responsibility. The IT department verifies these declarations of income and if any amount has been paid in excess, the department refunds the amount to the assessee’s bank account. All entities are required to file the taxes on time to avoid penalties.
Things to remember during Income Tax Return Filing
Why file IT returns?
Bank loans like education loans, vehicle loans, personal loans, can be availed easily as they require last three year’s IT returns.
As Immigration centres scrutinize many documents and IT returns proofs is a mandatory document for visa applicants.
Hefty amounts would be charged for non-filing of income tax returns and hence it is always better to file it to avoid legal repercussions.
Due dates for filing IT return
- July 31: A firm or individuals who are not liable for audit.
- September 30: A company or other who is liable to audit.
- March 31: All individuals and companies filing belated returns.
Documents required for Income Tax Filing in India
Who should file an income tax return?
The IT Department of India has rules for all businesses operating throughout the country to file income taxes each and every year. If need be, TDS return can also be filed and advance taxes can be paid to ensure that the business complies with the IT rules and regulations.
A proprietorship firm is run by a single person called the proprietor. Proprietorship is not a separate legal entity, that is, both the proprietor (business owner) and the business are the same. Due to this, ITR filing for proprietorship is the same as that of the proprietor.
Proprietors are required to file IT returns year after year. The procedure is no different from that of individual income tax filing.
As per the Income Tax Act, all partnership firms are treated as separate legal entities and are applicable for tax rates that are on par with LLP’s and companies registered in India.
All LLPs or Limited Liability Partnerships are considered separate legal entities and their income tax rate is similar to that of all companies registered in India. The Income Tax Act declares that all LLP’s must file their tax returns irrespective of the loss or gain they have incurred in that year. If the LLP has seen no business activity or registered income, then a NIL income tax must be promptly filed.
All types of business structures like Private Limited Company, Limited Company, Limited Liability Partnership company, One Person Company are registered under the Ministry of Corporate Affairs. All such companies are mandatorily required to file IT returns as prescribed by the Income Tax Act.