Filing an income tax return can be a tedious process, but it is an important step for taxpayers. The Internal Revenue Service (IRS) requires that individuals, businesses, and other organizations report their earnings and pay taxes to the federal government. Accordingly, it is important to make sure that all forms are filled out correctly and that all income is accurately reported. To help ensure that filing is done correctly and in a timely manner, taxpayers are encouraged to use online filing systems or seek the assistance of qualified professionals. In either case, filing an income tax return is an important part of being a responsible taxpayer.
Every individual whose total revenue during the previous year was above the maximum amount not payable to tax is required to produce a return of income, according to Section 139(1) of the Income-tax Act, 1961. In line with the e-filing protocol set by the Board in this respect, Section 139(1B) of the Finance Act, 2003, mandates the provision of income tax returns on computer-readable media, such as floppy diskettes, diskettes, magnetic cartridge tape, CD-ROM, etc.
You have a few options for submitting your income tax return:-
(i) a paper form;
(ii) Electronic filing;
(iii) A bar-coded paper return.
There is a vital act called section 80g through which a donor can get tax exemptions on his/her donations to some charitable organisations.
What is an income tax return?
An income tax return is a form that is used to file taxes. It must be filed every year and is used to calculate the amount of taxes that are owed to the government. The form requires individuals to provide information on their income, deductions, and credits that they plan to use when filing their taxes. Individuals can file their tax returns electronically or they can use a paper form. The income tax return form is an integral part of the annual tax filing process and it is critical that the form is filled out accurately and completely.
Notes on income tax return
When the return is sent in paper format, the recognition slip included with the return must be properly filled out. There is no requirement to file duplicate returns for new forms.
Online filing of returns is possible. Companies and businesses who are required to undergo a statutory audit under Section 44AB must electronically file their returns. All business entities (including people and HUFs) subject to tax audit are now required to electronically file their income tax returns beginning with the 2011โ12 fiscal year.
E-filing can be done with or without a digital signature:-
(a) Taxpayers do not need to take further steps if the returns are filed using a digital signature.
(b) Taxpayers must file ITR-V with the department within 15 days of e-filing if the returns are submitted without a digital signature.
(c) The taxpayer may also file his returns electronically using an electronic intermediary, who will do both for him and help him file his ITR-V within 15 days.
(d) Beginning with the A.Y. 2012โ13, individuals and HUFs with annual incomes of more than Rs. 10 lakhs must file electronically. These people must file their returns electronically, which does not need a digital signature.
Printing two copies of Form ITR-V is required in cases when the income tax return is submitted on barcoded paper. It is necessary to verify and submit both documents. Once the stamp and seal have been applied, the receiving authority must return one copy.
According to a notification dated March 28, 2012, e-filing is now required for individuals and HUFs whose total annual income exceeds Rs. 10 lahks starting with the tax year 2012โ13. However, these taxpayers are not required to use digital signatures, and they are free to communicate data electronically before submitting Form ITR-V for return verification. For everybody who must submit a return in ITR-4 and to whom the provisions of Section 44AB apply, filing a return electronically using digital signatures is needed.
In addition to receiving speedier refunds, e-filing entitles one to additional value-added services like monitoring refund emails and SMS notifications for processing status and checking tax credit status (Form 26AS). For individuals and salaried taxpayers who earned more than Rs 5 lakh in taxable income during the year, e-filing has been made mandatory by notification dated May 1, 2013.
According to the Finance Act of 2005, starting on April 1, 2006, everyone must file an income tax return on or before the deadline, even if their total income is greater than the maximum amount exempt from taxation under Chapter VI-A.
Who is eligible to file?
Generally, any individual earning income above the minimum filing requirement is eligible to file an income tax return. This includes income from wages, salaries, tips, investments, self-employment and pensions as well as other income such as alimony and social security benefits. In addition, filing requirements vary depending on individual circumstances such as whether you are single or married, have dependents or if you are a homeowner. It is important to remember that filing an income tax return is the responsibility of every citizen.
Who has been exempted from filing?
It has been announced by the Central Board of Direct Taxes that salaried taxpayers with total income up to Rs. 5 lakhs are excluded from submitting income tax returns for Assessment Year 2011โ12, which are due on July 31, 2011. After any permitted deductions, individuals with total income up to Rs. 5,00,000 for FY 2010โ11, consisting of a salary from a single employer plus interest on deposits in savings accounts up to Rs. 10,000, are exempt from filing an income tax return.
Such persons are required to provide their employer with their Permanent Account Number (PAN) and all bank interest income, pay all applicable taxes through source-deducted payments, and acquire a certificate of tax deduction in Form No. 16. People who get paid from many employers, have income from sources other than salary and interest from a savings account, or have refund claims are not covered by the programme. The programme will also not be applicable in situations when notices are issued for submitting income tax returns according to Sections 142(1), 148, 153A, or 153C of the Income Tax Act of 1961.
80 g is one such segment for availing tax benefits.
