- Lawyer Mr. Shaman Jain
- Skills Tax Filings
- CATEGORY Direct Taxation, Tax Registrations & Filings
ABOUT THIS PRACTICE
Individuals and businesses have some income and this income beyond a certain specified limit attracts tax. The tax imposed on the income of an individual is commonly known as Income tax and this tax is imposed and collected by the Central Government. Income tax is accrued in the form of advance tax but is payable in the same financial year.However, the intimation and calculation of the income and the tax liability is given in the Assessment Year .This intimation form is widely known as Income Tax Return. Based on some predefined criteria different tax payers have different ITR forms and also have different time limit for filing ITR.
In the recent times Income Tax Return forms have been modified so as to simplify the user experience. These forms require the taxpayers to prove a claim of expenses, exemptions and deductions and ,thus, online filing of ITR form needs an expert support since only an experienced professional can ensure the accurate filing of ITR return.
- Allows carry forward of losses: Loss is inevitable in any business, moreover maximum businesses suffer losses in their initial years. Now, if the ITR is filed it facilitates the carry forward of business loss or capital losses upto 8 years. In absence of ITR filing, the taxpayer is deprived of this service.
- Define financial worth: Financial worth of the tax payers can be defined using the ITR filed with the Government. Keeping track of ITR displays the financial capacity and also lead to increase in the capital base of a person. Previously filed ITR decides the track of income and it's financial financial worth. To get acquainted with the capability of the business the investors and institutions seek details of the returns filed.
- Loan Processing and high risk cover: Income tax returns defines the numbers and the capital base and this proves to be of great assistance while processing the loan. Loans are conveniently processed when the financial growth is higher and similar is the case in high-risk cover insurance. A vital document like ITR assists in making decisions in all such aspects.
- Claim refund of TDS paid from salary: TDS is deducted from the income directly for all the salaried employees. There could be chances of more TDS being deducted than the actual tax liability and in such cases the additional tax paid can be reclaimed to receive a refund but only if the ITR is filed by the individual.
- PAN Card: PAN Card of the taxpayer
- Entities PAN Card: In case of company or firm, PAN card of all directors or partners is required
- Aadhar Card: In case of company or firm, Aadhar card of all directors or partners is required
- Cancelled Cheque: Cancelled cheque of the taxpayer’s bank account is required
- Bank Account Statement: The statement for concerned Financial Year is required to assess other incomes
- Financial Statements: For business entities, except proprietorship, financial statements are required
- Investment/ expenses u/s 80: Details about the investments made or expenditure u/s 80 must be provided
- Form 16: The salaried person should provide the TDS Certificate, known as Form 16
Form for ITR filing are different based on type of income and business structure
- ITR 1 (Sahaj) : For Income from Salary & Interest
- ITR 2: For all incomes other than business income
- ITR 4: For all incomes including business income
- ITR 4S (Saral) : For Presumptive tax, 8% is deemed income of turnover
- ITR 5: For Partnerships business, this ITR is used for all income
- ITR 6: For Companies, this ITR is used for all the incomes
- July 31 : For individuals and firms who are not liable to audit.
- September 30: For companies and others who are liable to audit.
- March 31: Belated returns for individuals and companies.