Tax Filing or Tax Return is a tax form, which is used to disclose your Real Income and a proof that you have paid your rightful taxes to the tax authorities of Government. It is a predefined worksheet where your income figure is used to calculate your tax liability. Tax returns, whether it relates to an individual or a business, must be filed by a specific date.
Who needs to file Income Tax Return (ITR)?
An individual is required to file his Income Tax Return for a Financial Year if his taxable income for that year was in excess of the amount of basic exemption. It is mandatory for you to file Income Tax Return if your income is above the taxable limit. If your income does not exceed the taxable limit (Rs. 2.5 lakh per annum, according to FY 2016-17), you are exempted from Income Tax. Filing of Tax Return is every taxpayer’s duty and earns for you the dignity of consciously contributing to the development of the nation.
How to file Income Tax Return (ITR)?
Firstly you have to note that while filing the tax return, every individual having both PAN card or Aadhar Card should link to each other (According to Finance Act 2017) and your bank account details. The documents you are going to need for filing Tax Return depend on your source of income. There’s income tax return form ranging from ITR 1 to ITR 7 for different types of income. If you are a salaried individual you are only going to need Form 26AS and Form 16. There are many options to file your Income Tax Return online through official website of Income Tax Department of India. It is simple, easy and quick.
The Government offers various Tax Saving Schemes where you can invest your money. Here is the list of some Tax Saving Schemes:
1. Provident Fund
2. Life Insurance Premium
3. Equity Linked Saving Scheme
4. National Savings Certificate
6. Fixed Deposit