What Is the Income Tax Return?

May 16, 2022

The Income Tax Return means, the statement in which we submit the complete details of our income and expenditure to the Income Tax Department or the Central Government. In this, the details of income and expenses earned by you in a financial year are given. Once it reaches the department, the department checks it and verifies your income.

These verified income and expenditure figures for a reference year are believed to be fair and true. Now you can use it for various purposes, like applying for a visa, taking a loan, etc., or any other place where your income details are asked for. If your figures are correct, it is verified and returned to you after it has been determined.

What Is the Income Tax Return?

If you have taken a home loan or an education loan, then its interest is exempted up to Rs. 250000 and annual instalments amount up to Rs. 150000 with other savings. A salaried person has another exemption of Rs. 400000. Then the text looks like this:

Zero up to the first 500000. But if income exceeds 500000, then nil on the first 250000, 5% on the next 250000, 20% on the next 500000, and 30% on subsequent amounts at the rate of 4% on the amount so computed. Education Cess (Cess)) will also be payable. In this way, the person earning about Rs. 50000/-per month will not get any tax.

There are different due dates for filing income tax for different categories of taxpayers.
For individuals and all such assessees who do not require a tax audit, the income tax return has to be filed by July 31st of the assessment year.
For those for whom a tax audit is necessary, all companies and firms, etc., have to file returns by September 30 of the assessment year.

The Income Tax Return means, the statement in which we submit the complete details of our income and expenditure to the Income Tax Department or the Central Government.

What Is the Income Tax Return?

Earlier, all these processes were completed offline through documents. But now the department has made all this process completely online. When you apply for a visa to go abroad or apply for a loan at the bank, it is necessary to show your income tax return. ITR is considered a reliable source of your income.

You must take the help of CA to file your tax return. Many amendments come every year from the government side, so we recommend that you go to an expert like a CA or tax preparer, etc., for filing correct returns and filing tax planning, benefits, etc. A common man does not like to juggle with a subject like tax. But due to ignorance, he unnecessarily gets caught in the cycle of these notices. The fault is neither of the department nor yours. Having a CA in such a situation is not less than a relief.

Once the website sends a message about successful e-filing on your screen, you are done with the process of filling out your ITR. An ITR-Verification (ITR-V) form will be generated and you can download it. Take a printout of the ITR-V form, sign it, preferably in blue ink, and send it by ordinary or speed post only to the Income Tax Department within 120 days of filing the return online.

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