ITR – Income Tax Return or IT Return

ITRs (Income Tax Returns) are a type of tax return that is used to declare a net tax liability, claim tax deductions, and record gross taxable income. Individuals who make a specific amount of money are required to file IT returns. Firms or corporations, Hindu Undivided Families (HUFs), and self-employed or salaried individuals are all required to file ITRs with the Indian Income Tax Department.

Also Read: Income Tax Return Filing

What is ITR filing?

ITR filing is the process through which a taxpayer must record his total income earned over the course of a fiscal year. Individuals can complete their returns filing through the official portal of the Income Tax Department.

How to File a Tax Return on the Internet

Because the ITR filing process is now totally online, we frequently prefer to do it ourselves. While it may be tempting to delegate or outsource the work of calculating our income tax to an accountant, we must ensure that we account for all sources of revenue.

If you’re doing your own ITR file, it may appear to be a hard and time-consuming process. The Income-tax department has now made the process easier and more convenient by putting it online on their e-portal. 

While the online ITR filing process is convenient, you can also file ITRs on paper. Continue reading to learn how to file an ITR both online and offline.

Is it Required to File an ITR Online?

People who fall into any of the following categories are required to register an ITR:

  • Individuals and HUFs with a total annual income of more than INR 5 lakh or a tax refund claim must file the ITR online. Super senior folks (those aged 80 and up) can, however, file their ITRs either electronically or manually.
  • All businesses are required to file ITRs online with a digital signature.
  • Residents of India with assets outside of the nation must file an ITR online.

The Benefits of Filing an ITR Online

The ITR filing process was previously manual, making it confusing and time-consuming. The burden has obviously lessened now that the Income Tax Department has moved ITR filing online. The following are the advantages of filing the ITR online:

  • It enables you to efficiently keep track of all financial interactions with the IT department. So, if you ever need to apply for a loan or a visa, presenting tax returns will be a breeze.
  • You have a month or two before the deadline to complete the ITR. You won’t have to stress out at the last minute this way.
  • Because filing the ITR late can result in fines, it is far more convenient to do so online. Before the deadline, you can file your tax returns at any time and from any location.

Super Senior Citizens’ Guide on Filing ITRs Offline

Individuals over the age of 80, known as super senior citizens, have the option of filing ITRs offline during the fiscal year. Individuals or HUFs with income less than Rs. 5 lakh (and eligible for a rebate) can also file their ITRs offline, along with super elderly people.

Here’s how to file an ITR offline, step by step:

  • Form 16 must be requested.
  • The Income Tax Department will next require you to submit your ITR returns in physical form.
  • The IT Department will send you an acknowledgement slip once you’ve submitted the form.

ITR Forms: What Are They and How Do They Work?

On the official website of the Income Tax Department of India, there are a variety of ITR forms to choose from. These forms are used to file tax returns based on your source of income and taxpayer classification (resident, non-resident, individual, or non-individual)

The following are the many sorts of ITR forms that you can use:

  1. ITR 1: Individuals who obtain their annual income from salaried jobs, pensions, one-house property, interest, or other sources and have a total revenue of INR 50 lakh should fill out the ITR-1 form, commonly known as SAHAJ. This does not include winning lotteries or income from race horses.
  1. ITR 2: Individuals or Hindu Undivided Families (HUFs) who obtain their annual income from sources other than business or other professions should use the ITR-2 form.
  1. ITR 3: The ITR-3 form is for individuals or HUFs who generate their annual income from business or other sources.
  1. ITR 4: People who have a presumed income from a business or profession should fill out the ITR-4 form.
  1. ITR 5: Individuals, HUFs, companies, and people filing Form ITR-7 should use the ITR-5 form.
  1. ITR 6: The ITR-6 form is used by businesses that do not qualify for income tax exemptions under Section 11 of the Internal Revenue Code.