All You Need To Know about Income Tax Returns

The income tax return is a key aspect for every individual. Moreover, since the Modi government has come into power spreading awareness about the ITR. The people have become quite careful about getting it done on time. 

Income Tax returns contain the details of any individual’s taxes. Anyone who has paid the tax on his income and is looking to get the details of the same. They are also used for claiming the return on the tax paid by the individuals. Which is either done through advance tax or deduction through individuals.

There are different ITR forms for individuals, salaried persons as well as business persons. We will discuss them one by one here:

Income Tax For The Salaried Employees

The first category that we are going to discuss over here is the salaried employees. With salaried employees, there is an income tax form 16 which plays a key role in filling up the ITR form. Most of the employees tend to make all the tax savings before form 16 is provided by their company so that minimal tax is deducted.

This form contains all the details of your income generated through the salary. The savings you have made if you have provided them to the HR department in advance and tax deducted from your salary. So, you just have to take a look at the income tax form 16 and fill the ITR-1 form as per the details that are given in the same.

In case, you have not declared your savings in form 16, you need to file them separately in the ITR form. It should be done along with the proof of the same.  You shall be very careful while putting up the details and match them exactly with the details given in form 16.

The advantage with ITR-1 form is it can be verified online and there is no need to send it to the IT office. In case, you are not willing to verify it online, you need to file ITR-V form. Take a copy and send it to the IT office.

In addition to the form 16, you also need to have a look at the TDS deducted. Moreover, the income earned from the interest on the deposit. For that, you need to have 26 AS and interest certificate along with you.

Income Tax Filing For The Business Person

With the business person, filing an income tax return is much more complex when compared to the salaried person. You do not have the luxury of income tax return form 16 using which you can file the return in minutes.

You need to have a look at the sales and purchases of your businesses and then fill the ITR-4 form. Especially when you are running a small business, you will have greater problems. As you may not be able to maintain each and every transaction. Since some are very minute and you don’t have a sufficient workforce. In such cases, the presumptive income calculation comes into play.

It is presumed that the gross income will not exceed 8% of your gross receipts. Thus you need to pay the tax on 8% of your gross receipts if it is exceeding the given threshold. You don’t need any kind of income tax form 16 online in filing this type of business returns.

You also have the luxury to declare your annual income from a business. It is lower or higher than 8% of your gross receipts. If you are paying a tax higher than 8% of your gross receipts, you can do it voluntarily. But in case, you have declared your income less than 8% of gross receipt, you need to maintain an accounts book. This is why business personnel are asked to get in touch with a professional before filing the return on income.

Exempt Income And Contributions Made To Various Relief Funds

There are various sections under the Income-tax that can help you to get the exemptions in ITR. For example, agricultural income up to INR 100000 is considered exempt income in ITR.

In addition, the PM and CM relief fund contributions are also considered as exemptions in the ITR. It will be deducted from the total income. There are also some other relaxations provided to the priority sector that you need to check in detail.

Your income tax is a reflection of your citizenship and contribution to your country and thus you shall be careful while filing income tax ITR 1. It also comes in handy when you are availing the loans from the banks and you are easily granted the same by the banks. There is no minimum income to file tax return India which is why you shall file it regularly even if you don’t have to pay any tax on your income.