What is Income Tax and IT Return Filing?
Income-tax is a tax levied and collected by the Central Government on income of a person and the form that is submitted while paying income tax is called income tax return. It is basically a statement of your yearly income and the tax payable thereon. There are various forms which are to be submitted by the assessees such as ITR 1, ITR2, ITR3, ITR 4S, etc. these forms are applicable and submitted by the assessees depending upon their sources of income. Every year the IT department, in its effort to simplify the tax filing process modifies and prescribes different forms.
A lot of people think that tax filing is voluntary and therefore dismiss it as a needless and troublesome task. The truth is that every individual or business entity has to file income tax returns once their total income exceeds Rs 250,000 for the year.
With the advent of digitisation, all your bank accounts and e-wallets are linked to PAN; thus, it is necessary that you don’t miss out on any income. Any mismatch or suspicious transaction invite the attention of Income Tax department almost immediately. In such circumstances it is necessary that you do not rely on automated software for filing your returns, and get an expert to file your taxes.
Why is it necessary to file ITR?
- Carry forward of losses - we are obligated to pay taxes on monies earned, so, in case of losses, we can adjust such losses against the incomes of future years and reduce future tax liability. In order to carry forward losses, ITR filing is a prerequisite.
- Claim an Income Tax refund - excess amount of TDS deducted by your employer/banker can be claimed back by filing you ITR.
- Loan/Credit Card processing - You are required to submit previous years’ ITR while applying for a loan/credit card. So, if you plan to take a home loan, better start filing returns now!
- Visa processing - ITRs are also a prerequisite for visa processing. This means, if you want to travel outside the country, non-filing will be an obstruction.
- Avoid Penalties - While, you may not instantly receive a notice from the tax department for failing to file taxes, you may receive one in due course. If it turns out that you failed to file your returns, you might be penalized up to the tune of INR 5,000-10,000 and might have to pay interest under section 234A.
Consequences of not filing Income Tax Return
Non-filing of ITR can result into stringent action by the Income Tax Department including fines and penalties which may extend to imprisonment. Late filing attracts penalties which may extend to INR 10,000 depending upon the period of delay and income.
What will you get from us?
- Returns filed by experts within 2 days
- Tax planning by professionals
- Hand-picked Tax saving Mutual Funds
The Finology benefit
Things we offer that others don’t -
- Expert supervision
- Make sure that all incomes are accounted
- Make sure that you avail all possible deductions
- Return filing with 100% accuracy so no liability is attracted
- Tax planning
What we need from you?
For filing your return, we need the following documents from you -
- Bank statement
- Cash book (if any)
- Proof of 80C deductions (LIC receipts, etc.,)
- Form 16,16A
- Salary receipts
- Any other document depending upon the case