In India, Tax Return is a process of reporting the income of a business or an individual by filing income tax with concerned tax authorities such as the income tax department. This tax return helps and allows the taxpayers to calculate their tax liability and remit the payments or a refund can be requested as the case persist. The Income Tax Return is a mean of the document that you can file with the Income-tax department to report your profits and losses of the concerned business and other details stating about the tax refund or tax liability.
Now according to the financial year ending on 31st March 2015, an individual or an NRI whose income exceeds more than Rs. 2,50,000 and Rs. 2,00,000 respectively, he/she is required to file an income tax return in India. Income tax slab has been further increased to Rs. 2,50,000 and Rs. 3,00,000 for the financial year 2016-2017 respectively. Any individual with income above that will need to file the income tax return.
In the interim budget 2019, full tax rebate under section 87A was given by the government for individuals having net taxable income upto Rs. 5 lakh.
Also Read: Tax Rebate Under Section 87A
According to the Income Tax Act 1961 Section 139(1), any individual whose income exceeds the maximum amount allotted that is not chargeable to tax in the previous year should file an income tax return. Nowadays, electronic filing of return or e-filing is very common and preferred by all.
The e-filing can be done by the individual himself as per the comfort of his/her home by registering on the website of IT department. It can also be done by hiring a professional for the same. The last date by which an Income can be filed by an individual or professional through e-filing or physically is 31st July of the year.
Who can go for E-filing of Income Tax?
Online filing of income tax online is an easy process and can be done by any assessee who has computer knowledge and following cases:
- Assesses whose total income is more than 5 lakh rupees are mandated to e-file the income tax return.
- HUF/Individual resident whose assets are located out of India.
- The assessed is required to give all report of the audit that are specified under Section 10(23C) (VI), 10(23C), 10(23C) (IV), 10(23C) (V), (VII), 44AB, 80IA, 10A, 12A (1) (b), 80IB, 80JJAA, 80LA, 80IC, 80ID, 92E or 115JB of the IT act.
- The assesse has to give a notice under section 11(2) (a) to the preceding IT officer.
- All those firms that don’t come under the rules of Section 44AB, artificial judicial person, AOP, BOI, Local Authorities (ITR5) and Cooperative Societies
- The assesse is required to give the returns under Section 90A or 90 or the deductions can be done under Section 91.
- All other companies/corporate entities.