ITR Filing

ITR Filing

ITR - Income Tax Return or IT Return

Income Tax Returns or ITR is a form used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. It is mandatory for individuals who earn a certain amount of money have to File IT Returns. Firms or companies, Hindu Undivided Families (HUFs), and self-employed or salaried individuals must file ITR to the Income Tax Department of India.

What is ITR filing?

ITR filing is the process by which taxpayer has to file a report of his total income earned on financial year. Through Income Tax Department official portal individual can complete their filing of returns. It has notified with seven various forms - ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Why should you file ITR?

It is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:

Individuals who fall within the respective tax slabs.

- If it's a Company or Firm, irrespective of the profit or loss made in a financial year.
- If a tax refund needs to be claimed.
- If a loss under a head of income needs to be carried forward.
- If being a resident of India, one has an asset or financial interest in any entity located outside India.
- If being a resident of India, one is a signing authority in a foreign account.
- If one receives income derived 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, body or trust.
- If one is applying for a loan or a visa.
- If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.