Income Tax E-Filing

What is an income tax return?

An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. This procedure of filing income tax returns is referred to as income tax filing. While filing, the total income tax you owe to the government is also calculated. If you are paid more tax than needed for the financial year, the IT Department will refund the extra money to your account. If you have underpaid taxes for the year, please pay the remaining amount, and then file your income tax returns. 
Income tax return form ranges from ITR 1 to ITR 7, used for different types of income. Some forms are longer than the others, and they may need additional disclosures such as balance sheet and a profit and loss statement information.

Why do you have to file income tax returns?

Whether you are a resident Indian or an NRI, filing an income tax return is compulsory, if your total Indian income exceeds Rs 2.5 lakh. 
Even if you do not meet this threshold, its a good practice to file or e-file your income tax return. An income tax return is an important document you must produce at the time of availing a home loan, as it reflects your financial discipline and prosperity as well as shows your capacity to repay a loan. 
If you are planning to go abroad for higher studies, or are about to take up a job outside of India, you will need at least three years filed income tax returns to show as proof of income. People processing your visa application may request for your ITR documents to evaluate your financial health, which in return shows that you can support yourself on your own in their country.

What are the details you need when you are e-filing your income tax returns?

- Produce basic information such as PAN, Aadhar Card, and current address. 
- Details about all the bank accounts you are held in the given financial year is mandatory. 
- Income proofs like current salary details, income from investments (like FDs, savings bank account) etc. 
- Information about all the deductions you are claimed under Section 80. 
- Tax payment information such as TDS and advance tax payments.

Am I Required to File Income Tax Returns?

It is mandatory to file income tax returns in India if any of the below conditions are applicable to you (as per the Income Tax Act):

• Earn gross annual income more than-

• Earn income other than salary like house property, etc.
• Want to claim income tax refund from the department.
• Earn from or have invested in foreign assets.
• Wish to apply for visa or loan applications.
• Company or a firm, irrespective of profit or loss.

Benefits of filing Income Tax Returns

Avoid late fees under 234F
Avoid a maximum penalty of Rs 10,000, if your total income exceeds Rs 5 lakh.

Avoid Tax Notices
Taxpayers are often served notices from the IT department for delayed & missed return submissions

Build Financial Documentation
Your Tax Return documents are proof of your financial investments and will be useful when you apply for a loan or a visa.

Carry Forward your losses
You can carry forward losses against house property and depreciation

Tax Refund
You can claim tax refund; the earlier you file the sooner you will get the refund