ITR stands for Income Tax Return. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry-forward of losses and helps to claim a refund from the income tax department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.
Who is Required to File Income Tax Return in India?
The following persons are required to file their Return of Income
Under the Income Tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms).
Even if the assessee had paid all taxes by way of TDS or Advance Tax ITR Filing is required because the amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
Consequences of Non-Filing of Income Tax Returns
As per section 234F (as inserted by Finance Act, 2017 with effect from Assessment Year 2018-19), a fee shall be levied on a person who is required to furnish a return of income under section 139 of the return of income is not filed within the due dates prescribed under section 139(1). The amount of fee is Rs. 5,000, if the return is furnished on or before the 31st day of December of the assessment year-
Provided that if the total income of the person does not exceed Rs. 5,00,000, the amount of fee shall not exceed Rs. 1000.
We at Swati K and Co. Chartered Accountants, Bangalore consisting Chartered Accountant and Professionals will assist in Filing Income Tax Returns and also advises our clients on Tax Planning and other related Services. In case you need our services, please write to us at [email protected]. We will be happy to assist you.