Before we proceed in detailed discussion regarding Income Tax Return Filing, let us understand below basic terminologies:
Assessee: An assessee is a person who is liable to pay taxes to the government against any kind of income earned or any losses incurred by him for a particular assessment year. Each and every person who has been taxed in the previous years for income earned by him is treated as an Assessee under the Income Tax Act, 1961.
Financial Year/Previous year: The year in which any income is earned is known as previous year.
Assessment Year: Assessment year is the year in which return is supposed to be filed i.e. the year next to the year in which income was earned/previous year.
Income Tax Return filing is a responsibility of every eligible assessee. Income Tax Return filing is a process wherein assessee is required to fill a form to provide information related to their income & tax computation to Income Tax Department of India.
Every entity whether it is individual, HUF, Partnership Firm, Corporate etc. is required to mandatorily file their return every year on or before the due date to avoid penalty for late filing of Income Tax Return (ITR).
In Delhi and India, every entity has the obligation to file ITR (Income Tax Return). However, in case of individuals, the individual is required to file the Income Tax Return if their gross total income exceeds the basic exemption limit.
The exemption limit is dependent on age of the assessee and is as follows:
• Individuals below 60 years: INR 2.5 lakhs
• Individuals aged 60 to 80 years: INR 3.0 lakhs
• Individuals above 80 years: INR 5.0 lakhs
An individual can file the Income Tax Return voluntarily even if his/her gross total income is below the basic exemption limit.
There are some High-value Transactions that requires an assessee to file their ITR irrespective of the fact that their gross total income is below the threshold. Following is such High-Value Transactions:
• Deposited INR 1 crore or more in current bank accounts.
• Deposited INR 50 lakhs or more in savings bank accounts.
• Spent more than INR 2 lakhs on foreign travel.
• Incurred electricity expenses of more than INR 1 lakh during the financial year.
• Had TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) exceeding INR 25,000 (or INR 50,000 for senior citizens).
• Businesses: Mandatory if your total sales, turnover, or gross receipts exceed INR 60 lakh during the financial year.
• Professionals: Mandatory if gross receipts exceed INR 10 lakh during the financial year.
One can file Income tax return in Delhi (ITR in Delhi) in two ways online or offline:
Offline: In this method one downloads appropriate ITR form from Income Tax Department’s website, then he/she can fill the form on computer and then save the file in XML format and Upload ITR on the Income Tax eFiling portal.
Online: In online method one is supposed to login and fill the required details directly on the eFiling portal of Income Tax Department.
No, after filing the Income Tax Return (ITR) one is supposed to E-Verify the Income Tax Return (ITR). It is mandatory to E-Verify the Income Tax return within 30 days from filing of ITR.
While it is not mandatory to take services of Chartered Accountant in filing Income Tax Return in Delhi but it is recommended to take professional help to file the ITR accurately, timely and to avoid any future complexities and consequences. We at Onlinecorpserv.com help you with CA assisted ITR filing at affordable cost and in easy manner.
As far as government fee is concerned, government doesn’t charge any fee for ITR filing. However, if you take assistance from any professional organisation like onlinecorpserv.com then depending on the applicable form the reasonable and affordable professional fee is charged.
Yes, you can file Income Tax Return in Delhi without Form 16.
Yes, there are some benefits that comes with early filing of Income Tax Return. Following are some key benefits:
Faster Refunds: Assessee who files the ITR early, usually get the Income Tax refund quicker.
Avoid last minute hassles & technical glitches: When someone files the Income tax Return at last minute, he/she doesn’t have enough time to review and do corrections and also last-minute filer often face technical issues related to server overload and at times that results in delayed filing.
Ensure Accuracy: Early filing allows one to take due time and file the details with required accuracy.
Lower interest cost: In case the tax is due, early tax payment and filing the return helps you reduce the interest cost on unpaid tax.
Documents required are dependent on the types of incomes that you earn i.e. Salary, House Property income, Business & Profession Income etc.
For example, if you earn Salary Income you may required to produce Form 16, Form 26AS etc.
Income tax paid by assessee is a major revenue source for the Government of India. Government uses this revenue in various welfare schemes such as agricultural subsidies, education, Infrastructure development, healthcare etc. for the benefit of general public.
Not filing of income tax return may attract penalty, interest and other legal consequences. Further, you may also miss refund (if applicable). Additionally, there are other events that require you to produce income tax return like visa application, loan application, if you don’t file ITR you will not be able to produce them required documents.
