An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. This procedure of filing income tax returns is referred to as income tax filing.
Income tax is paying tax on what you are earning income from profession, trading and any business. This tax will applicable as per tax slabs applicable.
Advantages of filling IT Return:
The advantages of filing for IT returns are:
Penalty for Late Filing u/s 234F
As per the changed rules notified under section 234F of the Income Tax Act which came into effect from 1 April 2017, filing your ITR post the deadline, can make you liable to pay a maximum penalty of Rs 10,000.
| DATE | PENALTY |
|---|---|
| 1St September to 31st December | Rs 5000 |
| After 31st December | Rs 10,000. |
However, as a relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be Rs 1000.
The process of filing your Income Tax Returns in India takes some preparation. This is why the Government gives you four months’ window period to compile all documents like salary/income details, bank statements, previous tax statements, etc
The procedure varies as per the income earned per year and income source like salary, business profit, investment profit and so on. Collating all your documents ready is just one aspect of it.
We will discuss in detail about the documents needed for filing Income Tax Returns in India.
1. Choosing the applicable ITR form
Taxpayers have to choose the ITR form applicable to them for the AY
2. Link Aadhaar with PAN
It is mandatory for taxpayers to link Aadhaar with PAN for the AY on or before the filing of income tax returns
3. For Salaried Employees
If you are a salaried employee, gather these documents to e-file your income tax returns in India. Go through this list to see the documents you’ll need to do your taxes.
From the AY 2019-20, it is essential to gather the information on all taxable allowances received and the amount claimed exempt out of such allowances e.g., house rent allowance, leave travel allowance etc. and disclose the same in the IT return.
4. Documents related to interest income
5. Form 26AS
Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.
It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received in the financial year. This form can be accessed from the IT Department’s website.
6. Section 80 Investments
Section 80C investment documents. Investment made under PPF, NSC, ULIPS, ELSS, LIC qualify for deductions under Section 80C.
7. Documents Required to Claim the Following Expenses as Deductions
Keep these documents at hand to claim the following expenses as deductions –
8. Other Investment Documents
Process to claim income tax refund
A person can claim the refund of the excess tax paid/deducted during a financial year by filing his or her income tax returns for that year
As per the Income Tax Act, a person is required to file his/her return in the relevant assessment year by July 31 (unless deadline extended) to claim the refund.
There is no separate procedure as such in order to claim an income tax refund due to you. You can claim tax refund by simply filing the return of income in the usual manner. Ensure your return is electronically verified through Aadhar number OTP, EVC generated through bank account or physically verified by posting the signed ITR-V (acknowledgement) to Centralized Processing Centre (CPC) within 120 days of filing the return.
Eligibility Criteria for Income Tax Refund
Below are cases for which you are eligible to claim income tax refund:
