Introduction of Income Tax Return
Income Tax Returns can be described through various types of forms such as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7, and many others.
The Income Tax Return Form depends upon the source of the category of income assessed. If a person has a business of farming, he/she is not required to fill Income Tax Return File.
As of the Income Tax Act, of 1961 athletes and the Income Tax Rules of 1962 citizens have to fill their particular Income Tax Return File at the end of every year.
The ITR should be filled out before the due date released by the Income Tax Department. Not only Government employees but also private sector employees have to pay ITR according to the ITR file 3 descriptions.
Who can fill Income Tax Return?
- People who have a net worth of more than Rs 2.5 lakh in FY and Rs 3 Lakhs of Senior and Rs 5 Lakhs of Super Senior Citizens.
- People who want to claim their Income Tax Refund.
- Users who wish to carry forward a loss under a head of their income.
- Indian residential people who have their accounts in foreign banks.
- Charitable or Religious Income Property People and Institutions
- Educational institutions, Medical FIS, Trade Union Infrastructure Debt Fund, or any such type of Authority or Individual have to fill ITR.
- Foreign companies who are taking advantage of Indian assets and transactions should also have to fill ITR.
- NRIs who live outside India and have an income of more than Rs 2.5 Lakhs are also required to fill the Income Tax Return Foles in India.
The penalty for not filing an Income Tax Return
If a person he/she or an association has not paid their ITR on the decided timing they have to pay a penalty after the last date of ITR filing as per the New Law of Income Tax.
Amount of Rs 5000 to be filled by the users as a penalty after the due date of 31st of August of the assessment year before 31st December.
Rs 10000 is to be paid as a penalty if a taxpayer fills ITR after 31st December or before 31st March.