What is ITR?
You must have heard words like filing ITR or income tax return at some point of time. ITR means Income Tax Return. This ITR is a kind of form in which the tax paying person or company has to fill complete information about his annual income and the taxes etc. and submit it on the e-portal of the Income Tax Department within the given time.
It is not necessary that income tax is paid by a particular person only, but the taxpayer can also be a firm, trust and company etc. ITA is filled between the financial year i.e. 1st April to 31st March. The last date of ITR is also decided by the government on which the company or individual has to file ITR return. The government spends the amount of money it receives through this tax on the development of the country.
Who has to file ITR?
Generally, individuals, businesses and other entities earning income are required to file Income Tax Returns (ITR). The limit for filing income tax return depends on the jurisdiction in which the person resides and what is his source of income, the types of ITR can be different according to the source of income.
In most countries, individuals earning income above a certain limit are required to file ITR. The limit for filing ITR is determined by the government of the country on the basis of different factors like age, income level etc. Additionally, businesses and other entities that earn income are generally required to file income tax returns.
Benefits of filing ITR :
We hope by now you have understood what ITR is. Now this question might be arising in your mind that why is ITR filed i.e. what are the benefits of filing ITR? Filing Income Tax Return (ITR) should be an important responsibility for those who earn income more than a prescribed limit. Some benefits of filing ITR are as follows
ITR acts as proof of income and can be used as a document to avail loan, credit card or other financial benefits.
By filing ITR, you can claim deductions for various expenses incurred throughout the year, such as donations to charity, investments and other expenses, which can give you income tax benefits.
Regular ITR filing reduces the chances of scrutiny by the Income Tax Department.
If you file ITR, it becomes easier for you to get a Visa to go abroad.
By always filing ITR on time, one can easily get loan from any bank or other financial institution because people should have filed ITR for at least 3 years to take it.
By filing ITR, you can easily get life insurance or any other kind of high claim insurance from LIC or any other company.
By filing ITR, you can easily buy or sell a big property without any fear of the Income Tax Department.
If a salaried person’s income tax is more than the TDS automatically deducted from the company or institution, then he gets a refund by filing ITR.
Documents required to file ITR :
By now you have learned what ITR is and we hope you liked the information given till now. However, depending on your source of income and type of ITR, different documents may be required. The following documents are required while filing Income Tax Return (ITR).
- PAN card
- Aadhar card
- Bank statement
- Valid e-mail ID
- investment proof
- property details
- Form 16/16A (for employed people)
- salary slip
- Form 26AS
- Tax Saving Investment Proof
- Medical insurance documents
- tds certificate
- interest certificate