Income Tax Return

Income Tax Return or ITR is the annual tax return to be filed with the Income Tax Department. All eligible individuals, companies, firms, companies and other entities in India are required to file an ITR on their annual income every year on or before September 30.

There are different tax slabs on the basis of which the tax rates are applied on the annual income of a person. Income tax must be filed annually on the basis of these tax slabs if the income of an individual or company crosses the exemption limit. The ITR is the document that lays down the details of tax paid by a person along with the requisite deductions like investments, TDS, pay slips, rent receipts, etc.

Company ITR Filing in India

Documents required for ITR Filing

  1. Bank statement/ Passbook
  2. Interest income statement for fixed deposits
  3. TDS certificate
  4. PAN number
  5. Other relevant documents, if needed

Process of ITR filing

The first step of ITR filing includes submitting the documents for the preparation of Income Tax Return. The ITR is prepared on the basis of the deductions applicable to the company or individual. After the ITR details are approved by the person, the ITR is filed with the Income Tax Department before the due date i.e. September 30.

FAQs

What is Income Tax?
Income tax is a direct tax applicable on the income of a person. Income tax is charged by the Government of India under the Income Tax Act, 1961. Income tax is collected on the total income earned during the year starting from April 1 to March 31 of next year.
What is Previous year and Assessment Year?
Previous Year is the financial year in which the income is earned. The income earned during this previous year is charged to tax in Assessment Year, which is the year after previous year.
Who is liable to pay Income Tax?
Every person is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates. A person includes: 1. An Individual 2. Hindu Undivided Family (HUF) 3. Company 4. Firm 5. Association of Persons (AOP) or Body of Individuals (BOI) 6. Local Authority 7. Artificial Juridical Persons
On what amount is Income Tax calculated?
Income tax is calculated on the net income chargeable to tax after applying deductions. There are different tax slab rates for different taxable incomes.
How is Income tax paid to the government?
The payment of income taxes can be made to the government by either physical mode i.e. cash or cheque at any designated bank branch or e-payment on NSDL website. Payment is to be made in Challan 280 in both the cases.
What is an Income Tax Return?
An Income Tax Return (ITR) is a statement of income earned to calculate tax liability and payment or refund of taxes. The purpose of filing an ITR is to report the income and taxes paid thereon to the government.
What are the different kinds of ITR Forms?
The type of ITR forms include the following: 1. For Individuals or Hindu Undivided Family: ITR-1, ITR-2, ITR-3, and ITR-4 2. For Company: ITR-6 and ITR-7 3. For other than Individuals and Company: ITR-5
Is a PAN Card needed to file an ITR?
Yes, a company must have a PAN to file an income tax return.
What are the due dates for filing an ITR?
The due date for filing the ITR of a company is September 30; for a person whose accounts are required to be audited under Section 44AB- 30th September; for working partner in a firm, when tax audit is required- September 30; for individuals, HUF, AOP, BOI, etc., when no tax audit is needed under Section 44AB- July 31.
What to do if there is an error in the ITR filed?
If there is an error found in the ITR filed, it can be rectified under Section 139(5). Revised ITR can be filed by any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.