WHAT IS INCOME TAX RETURN ?
Income Tax Return (ITR) is a form through which you report the details of your income earned from various sources and thereon pay taxes to the Income Tax Department. ITR contains all the details of incomes and tax saving investments done by an individual in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax Return (Forms are relevant for individuals, company, firm, etc.).
WHY FILING OF A TAX RETURN IN INDIA IS IMPORTANT?
The Income Tax Act 1961, obligates certain eligible persons to file their income tax return once in a year. Filing of Income Tax Return legitimize your earnings and investments whereas non filing it means that you have not disclosed your eligible income which is required to be disclosed as per law, which becomes your Black Money. Also, by filing your Income Tax Return you can get an income tax refund, if you have paid excessive taxes to the government. Further your Income Tax Return plays crucial role at time of applying loan, credit card, etc.
WHO IS REQUIRED TO FILE AN INCOME TAX RETURN ?
Every Indian including an NRI is required to file an Income tax return where Total Income exceeds the basic exemption limit of Rs. 2,50,000 for an individual; Rs. 3,00,000 in case of senior citizen and Rs. 5,00,000 in case of super senior citizen.
Total Income comprises income from all sources i.e. income from salary, house property, business income, capital gains or any other income. It does not include any deductions like 80C,80D, 80DDB etc.
You are required to file return irrespective of the fact whether you have paid tax or not. So, even if the employer has deducted TDS in full you are still to file an income tax return
.