FAQ's RELATED TO INCOME TAX RETURN
1. What is ITR?
ITR is a form in which the taxpayers file information about his source of income earned and tax applicable to the IT department and the tax paid by him/her in the financial year.
2. Why you should File ITR?
In India, It is mandatory to file ITR if your gross annual income is >2,50,000, If you have more than one source of income If you want to claim Income Tax Refund from the department If you wish to apply for Visa or Loan, etc..
3. What are the different types of ITR?
ITR-1 for salaried taxpayer having one house property, ITR-2 for a taxpayer with salary having more than one house property, ITR-3 for individual or HUF’s having business or profession income, ITR-4 for individual or HUF or Professionals having income less than 50 Lakhs and small business having income less than 2 Crore, ITR-5 for firms, AOP’s and LLP’s, ITR-6 for companies those are not claiming exemption u/s 11.
4. What is the Due Date for filing ITR?
The Due date for filing ITR forms for F.Y is 30th November 2020. The due date is extended due to a pandemic situation. All the taxpayers should file their ITR forms before this due date to avoid penalties.
5. What are the necessary documents required to file ITR?
Form-16, Salary slips, Interest certificates, Form 16A/16B/16C, Form 26AS, Tax saving Investment proofs, Deduction u/s 80D and 80U, home loan statement, Capital gains, Adhaar Card.
6. What is ITR-V?
ITR-V is an acknowledgment you receive when you file your ITR online. This is called Verification of return. It is sent by the IT Department. ITR-V should be sent to CPC within 120 days of filing your income tax return or else the ITR filed by you becomes invalid.
7. What is Defective ITR Notice?
A notice for defective return is sent when wrong information is filled while filing the ITR forms, then you must correct your return by revising it within 15 days from the receipt of notice by the Income Tax Department.
8. When should I deduct TDS?
Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.
9. What precautions to be taken while filing ITR?
Every Taxpayer should download 26AS from the Income Tax department’s website. Income and TDS as per 26AS should be verified with the Income Tax Return. The taxpayer may have to face the Department if Income is shown less than the Income shown in 26AS.
10. What happens if I do not file ITR?
If you do not file Income Tax Return before Due date you will be invited to pay penalty. Therefore, to avoid excess payment of penalty ITR should be filed on time.
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