An Income tax return is mainly the form, which is being used to file the data about somebody’s income and the tax to the Income Tax Department. The value of the tax liability of the taxpayer is mainly calculated based upon his or her income. Some of the facts about the income tax return filing in India have been discussed in this article.
The different type of individuals who need to file for income tax
- A person having the age up to 59. and whose total income for the particular financial year mainly exceeds Rs 2.5 lakh. In the case of the senior citizens falling in the age group of 60 to 79, the income limit increases mostly up to Rs. 3 lakh. In the case of the super senior citizens who are mainly aged 80 and above, the limit is mainly Rs. 5 lakhs.
- All of the registered companies mainly generate income, irrespective of whether they are causing any profit or not in that year.
- The person who wants the refund on the excess amount of tax is being taken away or the income tax they’ve paid.
- A person who has got assets or any of the financial interest systems is mainly located outside India.
- Some of the Foreign companies mainly enjoy treaty benefits on some of the transactions made in India.
- NRIs whose net income is more than Rs. 2.5 lakh in India in the single financial year.
Benefits of filing the income tax in India
- The person who mainly applies for tax returns can get easy approval of the loan such as vehicle loan, housing loan, etc.
- To claim the income tax refund, one needs to file the income tax refund.
- One can use the income tax return as the address and income proof.
- Most foreign embassies and consulates require someone to provide copies of their tax returns for some of the previous years for the visa application.
- Taxes are one of the essential sources of income for any government. The money collected as tax is mainly used to build the infrastructure and some other development activities. The government spends mostly the accumulated amount of money on healthcare, defense, infrastructure, education, and launching different schemes for the masses.
The different types of documents needed to file for the income tax
- A person needs to choose the appropriate ITR form for filing the tax.
- In India, it is necessary to link the Aadhar with the PAN number.
- For any salaried person, they need to provide some of the documents like PAN number, the form-16 issued by the employer, and the monthly salary slip.
- A person needs the bank statement or the passbook for the interest on the savings account, the interest income statement for the fixed deposit, and the TDS certificate issued by the bank or any other financial institution.