Income Tax Returns

Everyone must electronically file their income tax return (ITR) online, a process also referred to as electronic filing or “e-filing,” except older persons.

A form that must be submitted to the Income Tax Department is an income tax return. It includes data on an individual’s income and taxes paid for the period of the financial year that runs from April 1 to March 31. The Income Tax Department has prescribed seven different ITR forms based on the taxpayer’s category, income source, and total income.

With Clear’s e-filing tool, filing your income tax return electronically is quick and easy. Since Clear is a government-approved gateway for electronic return submission, 100% authenticity and security are upheld.

You can file your income tax returns online at www.taxcult.com, our website, or the website of the income tax department.
Taxcult makes it simple to file taxes online or electronically. With no human labor required, you may electronically file your returns in only three minutes.
It should be noted that the deadline for electronically filing your income tax returns for the assessment year 2022–2023 is July 31, 2022, at the latest.

Yes, there are two different legal compliances: filing a tax return and deducting TDS. By the terms of the Income Tax Act, income tax is due on your taxable income. On the other hand, you certify that you have paid all applicable taxes by filing a tax return. When applying for a loan or visa, the income tax return is also a very helpful document.

The government has announced seven forms (ITR 1, 2, 3, 4, 5, 6, and 7) for various taxpayer groups. Individuals and HUFs are covered under ITR-1 through ITR-4. Depending on the amount and source of income, they can select the relevant ITR form. Partnership firms, limited liability partnerships (LLPs), Associations of Persons (AOP), Bodies of Individuals (BoI), Artificial Juridical Persons (AJPs), deceased estates, bankrupt estates, business trusts, and investment funds are all covered under ITR-5.

Every company needs to submit an ITR-6. Businesses claiming exemption from income from property held for religious or charitable reasons are not covered by it. These businesses must file an ITR-7. We will automatically select the appropriate income tax return form if you are using ClearTax for electronic filing.

On the Income Tax Department website, you can use your debit card or net banking account to make direct tax payments to the government using challan 280. The following are the payment options for the taxes below:

1. Prepayment Tax-(100) Prepayment Tax.
2. Self-assessment tax: 300 Tax Self-Assessment.
3. Frequent evaluation – (400) Regular Assessment Tax.

Without a Form 16, you can still file your tax return on Taxcult. All you’ll need is your pay stubs. Use this guide’s steps to e-file without Form 16.

Once your income tax return has been electronically filed and your e-verification is pending, you will receive a 1-page document called an ITR-V. You have the option to check your income tax return online or offline. There are several ways to verify information online. Nevertheless, you have 120 days after e-filing your tax return to print, sign, and mail the ITR-V to the Income Tax Department to have your return verified offline.

Since ITR return forms are attachment-less, the taxpayer (whether filing electronically or manually) does not need to attach any documents to their return of income, such as TDS certificates or proof of investment. Nonetheless, in circumstances such as assessments, inquiries, etc., the taxpayer should hold onto these records and present them to the tax authorities upon request.

If your revenue from agriculture is up to Rs 5,000, you can file an ITR 1. If your income from agriculture exceeds Rs. 5,000, you must file an ITR 2.

By submitting your income tax return, you can get a refund for any excess tax you paid. You will receive a refund via an ECS transfer that is credited to your bank account. Pre-validating the information associated with your bank account is crucial before submitting your income tax return.

If you incurred a loss during the fiscal year and wish to carry it over for adjustment against the income of the following year, you must file your return by the deadline. Only if you submitted the return stating the loss before the deadline may you carry it forward.

According to the Income Tax Act, it is usually advised to file an ITR even if it is not legally needed. This is because the ITR return acts as evidence of income for several purposes, including the acceptance of loans, the application for a VISA or credit card, the claim of income tax refunds, the set-off and carry-forward of losses, etc.

According to the nation’s Income Tax Act, 1961, section 139(1), anyone whose total income for the prior year is above the maximum amount not subject to taxation is required to file their income tax returns (ITR).

1. People with a salary income
2. People who have changed employment (Multiple Form 16)
3. Those with capital gains income (stocks & mutual funds).
4. A business or profession, real estate, additional sources of income like interest, etc.
5. Those with foreign assets, foreign income, and non-resident aliens (NRIs).

You can ask for assistance from firms that specialize in ITR filing as well as chartered accountants. To avoid any type of fraud, it is advisable to keep your PAN and password private. Additionally, you can always ask the CA for help with IT returns. You can hire an Expert with ClearTax to compute your taxes and electronically file your tax return. The platform is completely secure and safe.

If your annual income exceeds the basic exemption limit, you must electronically file your income tax forms. If the following criteria are satisfied, filing an ITR becomes mandatory even if your income is below the basic exemption limit:

1.If the total amount deposited in all of your current accounts exceeds Rs. 1 crore
2. If you have spent at least Rs 2 lakh on foreign travel expenses
3. If you have spent at least Rs one lakh on energy
4. If you possess favorable interests or signature power in other nations
5. If the overall revenue of your company exceeds Rs 60 lakh
6. If your total professional earnings surpass Rs 10 lakh

7. If you have made deposits totaling at least Rs 50 lakh into your savings bank account
8. If the entire amount of TDS and TCS is at least Rs 25,000 (or, for senior citizens, Rs 50,000).

The Income Tax Act states that even in cases when filing an ITR is not required by law, it is generally recommended. This is because the ITR return serves as proof of income for several applications and processes, such as accepting loans, applying for a credit card or VISA, claiming income tax refunds, setting off and carrying forward losses, etc.

Use the procedures listed below to see the status of your ITR e-filing:
Step 1: Enter your PAN as a user ID and your login password to access the new income tax e-filing platform.
Step 2: After logging in, choose “View Filed Returns” from the drop-down menu under the “e-File” option on the top bar. Next, choose “Income Tax Returns.”

After selecting “View Filed Returns,” a year-by-year breakdown of all the previous returns you have submitted will be shown. Additionally, you can download your “ITR forms” and the ITR-V acknowledgment by selecting the “Download Receipts” option. The ‘View Details’ link allows you to view the current status of your ITR, along with the e-verification and refund issuing status, if applicable.

Penalties for late income tax return filing are imposed by the Income Tax Act. A maximum late fee of Rs 5000 is imposed under Section 234F for filing an ITR after the deadline.
Small taxpayers, however, are granted a break: the maximum penalty for late filing is Rs 1000 provided the total income does not exceed Rs 5 lakh.

Interest penalty for unpaid taxes
A taxpayer having an outstanding tax due is required by Section 234A of the Income Tax Act to pay 1% interest each month on the unpaid tax until the belated ITR is submitted.

Yes, with a little bit of fundamental understanding, you can fill out ITR-1 and ITR-4, which are simpler returns. Additionally, if you work for a salary, you can upload your Form 16 immediately, and Clear’s (formerly Taxcult) e-filing tool will automatically fill in all the information. Your ITR filing process will become incredibly easy and straightforward as a result.
It is preferable to learn more or get professional guidance for more complicated ITRs, such as ITR 2 or 3.

PAN and Aadhaar are the most fundamental and necessary documents to file an ITR, as you are fully aware.

Let’s look at the other documents you need to file your ITR.

Form 16: The Tax Deducted at Source (TDS) certificate is another name for Form 16 that your employer issued. After providing the details on the taxes paid on your behalf, your employer sends this form. You can view your pay, allowances, and deductions in this form.
Pay Slips: For salaried taxpayers, it is imperative to maintain the salary slip prepared. Basic information including your pay, House Rent Allowance (HRA), Dearness Allowance (DA), Travel Allowance (TA), tax withheld, statutory deductions, and other deductions are all listed on your paycheck slip. To file income tax returns, certain facts are required.

Form 26AS: This document includes tax-related data that is gathered on your PAN, including TDS, advance tax, self-assessment tax, and TCS. Aside from this, if you have invested or spent money, mostly on high-value transactions, Form 26AS includes information from Annual Information Returns (AIR), which are filed by various businesses.
Annual Information Statement: Your financial information is thoroughly detailed in this statement each year. Even in cases where TDS/TCS is not applicable, it nevertheless contains the transaction details. You can check transaction history for mutual funds, rental revenue, and interest details in your savings account.

Form 16A/16B/16C: Form 16A asks if you have any tax deductions available for interest on fixed deposit interest, rental income, insurance commission, or any other type of income. Details of TDS are available on Form 16B if you bought a property in the prior year. TDS is subtracted from your rental income from your plant and machinery on Form 16C.

Bank or post office interest certificates: Interest income from post office savings accounts, fixed deposits, recurring deposits, and savings bank accounts is taxable. You should obtain the interest certificates to find out the total interest received, even if your bank does not deduct any TDS because you are well inside the TDS restritions. Make sure your passbook is updated with information on interest income if you are unable to obtain interest certificates.

Details about capital gains: You are required to pay taxes on any profits you make from the sale of any property. If you sold any real estate in the past year, you must retain the sales deed in your possession. You must obtain a capital gain statement from your brokerage firm if you invested in shares, mutual funds, etc., and sold any in the preceding year. It includes all of the short- and long-term capital gains transaction-by-transaction details.

Business PL and BS (with schedules): The profit and loss account and balance sheet must be used to calculate your business income, which is required to be reported in your ITR. Therefore, to file an ITR, you should have the PL and BS on hand if you are in business.

If an individual’s or HUF’s total income is over the basic exemption limit without taking into account the applicable exemptions and deductions, they are each required to file an income tax return.

Even if a person’s income is below the maximum exemption limit, they are still required to file an ITR if they are an ordinary resident of India and meet certain requirements. These criteria include:
possesses signing authority over any account opened outside of India and is the beneficial owner of any asset, including any financial interest in any entity, situated outside of India.
Is the recipient of any asset situated outside of India, including any financial interest in any entity?
deposits made into current accounts (one or more current accounts kept with a co-op bank or a financial firm) totaling more than Rs 1 crore.
if any person’s or his international trip expenses surpass Rs 2 lakh.
if a year’s worth of electricity costs more than Rs 1 lakh.