IT Return Filling

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Overview of Income Tax Return 

 

Advoxpert in India encompasses both direct and indirect taxes. Direct taxes are income-based, while indirect taxes are levied on goods and services. Income Tax is a form of direct tax imposed on individuals earning above a certain threshold, covering various sources like salary, business profits, and investments. On the other hand, indirect taxes, now subsumed under the Goods and Services Tax (GST), are applied when purchasing goods or services.

 

 

Income Tax e-Filing

 

Income tax can be paid online or offline, but the government mandates e-filing for all returns. This method ensures efficiency and aligns with government instructions.

 

 

Advantages of Income Tax Return

 

Loans & Visa Processing:

    ITRs play a crucial role in loan approvals, helping lenders assess repayment ability.

 

Ease in Availing Loans:

    ITR becomes a vital requirement for loan approval, showcasing financial credibility.

 

Claiming Refund:

Filing ITR is essential for claiming tax refunds, which may arise due to excess tax deductions.

 

Carry-Forward Losses:

ITR filing enables the carry-forward of losses against future gains and income.

 

Establishing Income in Insurance Cases:

While not mandatory, ITR aids in determining income for fair insurance payouts.

 

Individual Self-Employed Filing for Tenders:

Self-employed individuals need ITR receipts as proof of income for contracts or tenders.

 

Being a Responsible Citizen:

Filing ITR showcases responsible citizenship and adherence to tax regulations.

 

Avoid Penalty:

Timely filing avoids penalties as per the new provision (Section 234F) in the Income Tax Act.

 

Get TDS Refund Back:

Claim excess TDS deducted by the employer while filing the income tax return.

 

Input or Carry Forward Losses:

Timely filing allows carrying forward of business and capital losses for future offset.

 

 

Types of Income Tax Return

 

ITR 1:

For salaried individuals with income from one house property and additional sources.

 

ITR 2:

For individuals and HUFs with income from business or profession.

 

ITR 3:

For individuals and HUFs with proprietary business or profession income.

 

ITR 4:

For individuals and professionals opting for the presumptive income scheme.

 

ITR 5:

For partnership firms, LLPs, and AOPs.

 

ITR 6:

For private limited companies and one-person companies.

 

ITR 7:

For charitable trusts, political parties, universities, and institutions.

 

 

Tax Slabs for Income Tax

 

Income tax rates vary based on income ranges, with different slabs and applicable tax rates.

 

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For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:

Old Tax Regime New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to ₹ 3,00,000 Nil Up to ₹ 2,50,000 Nil
₹ 3,00,001 - ₹ 5,00,000 5% above ₹ 3,00,000
 
₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000
₹ 5,00,001 - ₹ 10,00,000 ₹ 10,000 + 20% above ₹ 5,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000
Above ₹ 10,00,000 ₹ 1,10,000 + 30% above ₹ 10,00,000 ₹ 7,50,001 - ₹ 10,00,000 ₹ 37,500 + 15% above ₹ 7,50,000
    ₹ 10,00,001 - ₹ 12,50,000 ₹ 75,000 + 20% above ₹ 10,00,000
    ₹ 12,50,001 - ₹ 15,00,000 ₹ 1,25,000 + 25% above ₹ 12,50,000
    Above ₹ 15,00,000 ₹ 1,87,500 + 30% above ₹ 15,00,000

 

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For Individual (resident or non-resident) 80 years of age or more anytime during the previous year:

Old Tax Regime New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to ₹ 5,00,000   Nil Up to ₹ 2,50,000 Nil
₹ 5,00,001 - ₹ 10,00,000 20% above ₹ 5,00,000 ₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000
Above ₹ 10,00,000  ₹ 1,00,000 + 30% above ₹ 10,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000
    ₹ 7,50,001 - ₹ 10,00,000 ₹ 37,500 + 15% above ₹ 7,50,000
    ₹ 10,00,001 - ₹ 12,50,000 ₹ 75,000 + 20% above ₹ 10,00,000
    ₹ 12,50,001 - ₹ 15,00,000 ₹ 1,25,000 + 25% above ₹ 12,50,000
    Above ₹ 15,00,000 ₹ 1,87,500 + 30% above ₹ 15,00,000

 

 

Documents Required for Income Tax Return

 

Essential documents include

 

PAN card

Bank statement

Form 16 & 16A,

Digital Signature Certificate

 

Who Should File Income Tax?

 

Filing income tax is necessary for individuals, businesses, and entities falling under various criteria, including taxable income, business turnover, foreign income, and specific audit requirements.

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