Do you know why the e-filing revolution of taxation came to India?
If not, then read the article to know how it came and which all are income tax returns filed.
The advancement of technology and the introduction of the internet necessitated the revolution of e-filing of Income Tax Returns to get started in India. Moreover, looking at the urgency and the benefits of it came as a mandatory provision to begin with the e-filing of Income Tax Returns. And most importantly, after e-filing of Income Tax Returns, the government would have additional revenue with global integration through technological advancement of e-filing.
Finally, in the year 2004, e-filing of income tax was introduced. Initially, it was applicable on voluntary usage basis for all categories of income Tax assessee. However, form July, 2006 onwards, it became mandatory for all corporate firms to e-file their income tax returns. Taking this process further, from assessment year 2007 to 2008, e-filing of income tax return was made mandatory for all companies and from 2013 Individuals having more than INR 10 lakh income are mandate for filling income tax online. Electronic filing options include:
- Online, self-prepared return, using a personal computer and tax preparation software, or
- Online submission of returns using a tax professional’s computer and tax preparation software.
As we all are very well aware of the fact that to run a country, it takes a lot of funds. And in order to earn that hard cash, it requires every earning individual of the country to pay some amount of money from his or her income. Due to this every income-earning person is expected to pay tax to the government by filing their Income Tax Return timely.
The Income Tax Act 1961 along with the Income Tax Rules 1962 makes it obligatory for every citizen of India to be responsible enough by filing their Income Tax Returns with the Income Tax Department at the end of every financial year.
Types of Income Tax Returns
Here are all the income tax returns noted down for you all to go through so that you gain information as to which all returns are to be filed and by whom.
- Form No. ITR-1 SAHAJ
Who is required to file ITR-1 SAHAJ?
ITR-1 SAHAJ is an income tax return that is to be filed by every individual being a resident (other than not ordinarily resident) having total income upto Rs. 50 Lakh. It is to be noted that the income is earned either by receiving income from salaries or house property, other sources (interest) and agricultural income upto Rs. 5 thousand.
- Form No. ITR-2
Who is eligible to file ITR-2?
ITR-2 is a form used by Indian citizens as well as non-resident Indians to file their tax returns with the Income Tax Department of India. Therefore, individuals and Hindu Undivided Family (HUFs) not having income from profits and gains of business or profession shall be eligible to file the ITR-2 form.
- Form No. ITR-3
Who will file ITR-3?
ITR-3 will be filed by individuals and Hindu Undivided Family (HUFs) having income from profits and gains of business or profession and who is not eligible to file Form ITR-1, ITR-2 or ITR-4.
- Form No. ITR-4 Sugam
Who is responsible to file ITR-4 Sugam?
ITR-4 Sugam is for individuals, HUFs and firms (other than LLP) being a resident having total income upto Rs. 50 Lakh and having income from business and profession which is computed under section 44AD, 44ADA or 44AE.
- Form No. ITR-5
Who should file Form No. ITR-5?
ITR-5 is an income tax return, especially for persons other than (i) individual (ii) HUF (iii) company and (iv) person filing form ITR-7
- Form No. ITR-6
Who will file Form No. ITR-6?
Form No. ITR-6 is applicable to companies other than companies claiming exemption under section 11.
- Form No. ITR-7
What is form no. ITR-7?
ITR-7 is for persons including companies required to furnish return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) only
- Form No. ITR-V
What is an ITR-V?
ITR-V is basically “Income Tax Verification” Form which includes a single page document that is granted to the income tax payer after his or her ITR is filed online but not through electronic mode. Thus, income tax department delivers ITR-V to every taxpayer via email to verify the authenticity of income tax returns.
- Form No. Acknowledgement
Indian Income Tax Return Acknowledgement is presented where the date of Return of Income in Form ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, ITR-7 is filed and successfully verified.
- Form No. ITR-A
What is form no, ITR-A?
ITR-A is an income tax return which is less known by people however, it is filed by successor entities to furnish return of income under section 170A consequent to business organisation.
- Form No. ITR-U
Who shall file ITR-U?
ITR-U is an updated income tax return which shall be filed by persons who have either forgotten to report an income or have made a mistake while filing their ITR. Thus, as per section 139(8A) of the Income Tax Act, an additional chance is given to taxpayers to update their Income Tax Return within twenty four months from the end of the relevant assessment year.
Conclusion
Surely, you must be in a doubt as to what we will gain by paying income tax returns. Then, let me aware you there are many income tax return filing benefits you can claim and save a lot of tax. For the detail information, you may feel free to contact our experts at EAdvisors.
In short, here are some of the benefits to file income tax returns:-
- Pay your income tax return timely and enjoy fast refunds.
- Get access to instant income tax return acknowledgment receipt.
- Avail increment in freelancing jobs as tax consultants and TRPs
- You will easily be able to get a good loan
Stay connected with EAdvisors to gain more of knowledge relating to income tax returns.
