ITR (Income Tax Return)

Meaning & Definition

ITR (Income Tax Return)

ITR (Income Tax Return) filing is the annual procedure during which individuals and organizations disclose their income, deductions, and tax obligations to the government. Taxpayers furnish a comprehensive report outlining their income origins and tax payments to tax authorities. ITR filing takes place between April to July. It helps ascertain potential tax refunds or outstanding tax obligations owed to the government

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Frequently Asked Questions (FAQ's)

  1. How do I get my ITR return?

    To obtain your Income Tax Return (ITR), file your taxes online through the official income tax portal or use authorized e-filing platforms. After submission, download the acknowledgment for the record.

  2. What to file ITR 1 or ITR 2?

    File ITR-1 if you have income from salary, one house property, and other sources. Choose ITR-2 if you have income from multiple properties, capital gains, foreign income, or if you are an individual/HUF director in a company. Assess your sources before selecting the appropriate form.

  3. Where can I check my ITR amount?

    To check your Income Tax Return (ITR) amount, log in to the income tax e-filing portal and view your Form 26AS. It provides a comprehensive statement of your tax transactions.

  4. What are the 3 stages of refund status?

    The three stages of Income Tax Refund Status are:

    • The taxpayer has successfully filed the return, and it is verified by the Income Tax Department.
    • The department approves the refund after verifying the return and initiates the process of fund transfer.
    • The final stage, where the approved refund amount is credited to the taxpayer's bank account.

  5. Is ITR 1 for salaried employees?

    Yes, ITR-1 is primarily for salaried individuals. It is suitable for individuals with income from salary, one house property, and other sources, excluding those with business income.

  6. Who is not eligible for ITR?

    Individuals with an annual income below the basic exemption limit, which is not chargeable to tax, are not eligible to file Income Tax Returns (ITR).

  7. What is the full form of TDS?

    The full form of TDS is Tax Deducted at Source, a system where tax is deducted by the payer at the time of making payments.

  8. How to calculate income tax?

    To calculate income tax:

    1. Determine your total income from all sources.
    2. Subtract exemptions and deductions applicable under various sections of the Income Tax Act.
    3. Apply the applicable tax slabs and rates to the taxable income.
    4. Deduct any eligible tax credits.
    5. Utilize online calculators or consult a tax professional for accurate calculations.

  9. What is the penalty for not filing ITR?

    If you don't file your Income Tax Return (ITR) by the due date, you may incur a penalty of up to Rs. 10,000 under Section 234F. The penalty amount depends on the time of filing and your total income.

  10. What are the disadvantages of ITR?

    While filing Income Tax Returns (ITR) is mandatory, some disadvantages include potential penalties for late filing, complexity in understanding tax laws, and the time-consuming nature of the process. Additionally, errors may lead to scrutiny and legal consequences.

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