May 10, 2021

Some Important Facts An Income Tax Return

Paying income tax is a legal obligation in which everybody whose earns money from the previous year and that exceeds the maximum limit of an exemption towards the payments for the taxes. This is all done by the government when a persons yearly earnings are filed after the income exceeds the mentioned levels of earnings, which is according to the department of income taxes. After all is figured out the earner will receive an amount of money back from the government, which is known as an income tax return.

Income Tax Return

There were always people trying to file early and this used to be a very complicated process to accomplish in a real smooth procedure. There was always the need for a person to submit plenty of documents along with some certificates, which was used for verification reasons and this only made the process more confusing and tiresome.

However, today you shall be delighted to know that with the introduction to the many online processes for filing any tax returns, or the submissions of any IT forms, has all changed as it is now much more easier and also quicker than before. This saves a lot of time for the claimant as the process for filing is so simpler for the people at the tax department to have the ability to now handle the paperwork more easier.

Your tax return is to be filled on a different tax form for the entity, which is now quite simple to do as the government made tax submissions a lot more simple. There are eight forms that must be filled out in regard to the tax returns. Every kind of entity will need to be filed through the use of different tax return forms.

Here is a list of the forms, which are also explained in an easy way to understand that will help to clear any doubts that any tax payer thinks or feels in regard to the tax returns. First the ITR-1 is for anyone who has any money that is from a salary, family, pension and its interest. ITR-2 is for those who along with Hindu families, who has no income. The ITR-3 is made those who are partners will a firm and is never receiving any money from a business or profession from any proprietorship.

The ITR-4 is another form for those that do have income from a business or profession. Number 5 is the form for firms, associations of people. Number six is for companies other than the companies which are claiming some exemptions, which is under section 11. ITR-7 is designed for people, which will include the companies required for furnishing a return under section 139 4A and number 8 is for any return of fringe benefits.

There is also a newer form known as ITR V that is used to hold all of the fringe benefits, income returns from each of the eight ITR forms. This form is used to help cater to all the needs of those who file and intend on using the online submission process that is available.

The entire process of filing your tax return can now be done online. The amount of your return will be calculated easily with help from the use of the online calculator. Then you just submit everything on the forms that you can get online.

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