It’s the income tax season and every individual are busy filing their taxes. According to income tax Act, individuals whose annual income is in excess of the basic exemption limit of Rs 5 lakh must file their income tax return. In addition, the returns should be filed before the specified due date.
Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the entitled Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form such as ITR1 to ITR 7 Form is appropriate for different cases. Income Tax Return Forms vary depending on the criteria of the source of income of the individuals and the category of the taxpayers. To make you understand even more about ITR Filing, here we’ve discussed about the income tax filing for AY 2019-20-
Income Tax Filing Requirements for Financial Year 2018-19
If you fall in any of the following situations as per income tax act guidelines, hence it will be mandatory to file an ITR in India-
- Any individuals whose income exceed certain thresholds are eligible to file tax returns.
- If your gross total income exceeds Rs. 5,00,000, then you are eligible to file your return.
- If you’re a company or a firm and you have incurred income or loss during the financial year.
- E filing of Income Tax return is compulsory if you want to claim an income tax refund.
- If you want to carry forward loss under any head of income, it is mandatory to file IT Return.
- If you are a Resident and a signing authority in a foreign account.
- You are required to file an income tax return when you are in receipt of income derivative from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority
- If you are a foreign company taking profit on a transaction in India
- At the time of applying for a visa, you will be required to submit the proof of income tax return filing.
- This can enhance the chances of getting a suitable home loan if you apply for one in the future.
- Some credit card companies demand proof of tax returns before issuing a card.
What is e-filing?
efile of Income Tax Return in India is no more viewed as a complicated process after the government has simplified the filing process. With increasing prosperity and higher income levels, a large number of individuals have become eligible for income tax return. Now, individuals can easily e-file ITR through income tax return online process which is known as e-filing of returns. It offers the convenience of time and place to taxpayers to file their returns.
Steps for E-Filing
- Login to the official website for Income Tax efiling
- Read the instructions carefully
- Select and download the appropriate Income Tax Return form
- Download Return Preparation Software as per your income slab.
- Fill your return offline and generate the XML file.
- Register and create a user id/password.
- Login and click on the relevant form on the left panel and select “Submit Return”.
- After successfully efiling login India browse to select XML file and click on “Upload” button.
- On successful upload acknowledgment, details would be displayed.
- Generate printout of acknowledgment/ITR-V Form (66 KB) – PDF file.
- In case the return is digitally signed, on a generation of “Acknowledgement (29 KB) – PDF file that opens in a new window” the Return Filing process gets completed.