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What is Income Tax Return (ITR)? Who should file ITR?
As per the provisions of Income Tax Act, every tax payer is required to declare his or her income earned in a financial year and taxes paid on such income to the Income tax department, at the end of every financial year*, in a form prescribed & notified by the Income tax Department.
Different forms of ITR’s are prescribed for filing returns applicable for different status and nature of income.
*Note: Financial year is a period of twelve months starting from 1st April and ending on 31st march next year.
An individual may have incomes from various sources. He or she may have salary incomes, rent income form house property, income from business & profession.
He may also have income from other sources such as interest on savings bank, dividend income, lottery winning, agricultural income, royalties income etc.,
Thus, Income tax department collects summary of income and taxes paid on such income in the form of Income Tax Return in the prescribed form of ITR.
The ITR’s duly signed / verified & affirmed by the individual/ taxpayer is considered as complete and true statement of his or her income during the previous financial year is called Return of Income.
Who should file Income Tax Return(ITR)?
Last date of filing income tax return for assessment year 2016-2017 is approaching soon. Last date of filing income tax returns for individual is 31st July.
If you are unsure, not clear about who is required to file income tax return (ITR)? Then let’s understand who are mandatorily required to file their return of income in India?
Whether you should file ITR or not? Who is required to file their income tax return electronically (e-filing)?
Mandatory Filing of Income Tax Return (ITR)
As per the Income Tax Act, income tax return is required to be filed mandatorily if the taxable income of the individual is more than the threshold limit /exemption limit of Rs 250,000.
The income threshold/exemption limit applies to each individual and each individual is responsible for filing their returns.
Note: This threshold limit /exemption limit for senior citizens ( who are more than 60 years old but less than 80 years old) is Rs 3,00,000 or for super senior citizens (who are more than 80 years old) Rs 5,00,000.
Thus, If your gross total income (before allowing any deductions under section 80C to 80U) exceeds the maximum amount not chargeable to tax i.e., Rs.250,000 in the financial year, you are compulsory required to file your income tax return on or before due date.
Note: Due date of filing income tax return for Financial Year 2015-2016 & A.Y 2016-17 is 31st July 2016.
E-Filing of Income tax Returns
As per the provisions of Income Tax law, from A.Y 2015-16 onwards, taxpayer (other than super senior citizen above 80 years of age) having total income exceeding Rs. 500,000 or having a refund claim is required to file the return of income electronically.
E-filing of return can be done with or without digital signature or by using EVC (electronic verification code) method.
e-Verify Your Income Tax Return
Income Tax Department vide Notification No. 2/2015, dated 13th July, 2015, has introduced “Electronic Verification Code (EVC)” a new facility or option to verify Income Tax return online.
EVC is an alternative for digital signature & submission of ITR-V to CPC-Bangalore.
Now after e-filing your return of income, you may verify it using EVC. In that case you do not need to send physical copy of ITR-V to CPC- Bangalore for verification.