Things you need to know before you file your Income Tax Return
What is Income Tax Return Filing?
Income Tax Return is the standard proof of your Income if you do not file Income Tax Return annually, it means you are hiding your Income from government. Filing Income Tax Return is compulsory if your gross total income is more than Rs.250,000 per year. People can be free from filing ITR, under the categories-
- People who aged 60 and more, annual income is RS. 3 Lakh per year
- If you are super senior citizen, above 80 and more, your income RS. 5 Lakh per year
Who needs to file Income tax Return in India?
A person is required to file “Income Tax Return”, if his/her taxable income is more than INR 2.50 lakhs in a particular financial year
Benefits of filling income tax returns (ITR)?
Filing Income tax Return is a legal responsibility of a Indian citizen and filing tax return is always helpful in the following
- For Immigration and visa processing
- Availing loan facility like, personal or home
- You can use it as a Net worth certificate /income proof.Applying for a higher insurance cover
- Most important is your peace of mind!
Documents required before filing income tax return?
- PAN number
- Form-16 issued by your employer (For Salaried Employees)
- Bank statement/passbook for interest on savings account.
- TDS certificate issued by banks and others.
- Interest income statement for fixed deposits.
- Form 26 AS
- Tax challans
- Bank account statements. etc…
You don’t have to submit any of these files to the Income Tax department during the process of filing tax returns, and even copies are also not required. These documents are only required to help you prepare your tax computation and you should keep these copies handy, in case the Income Tax department asks you to furnish them.