FILE INCOME TAX RETURN
It is a document to report your Income during Financial Year to the Income Tax Department. Income Tax Return is required to be submitted by an assessee to Income Tax Department before due date in the worksheet format prescribed by Income Tax Department.
Income Tax Return can be submitted by Online Mode or Manually. It is preferable to submit Income Tax Return online for fast assessment and to get fast refunds if any.
LegalRaj Expert helps you to file your Income Tax Return within few minutes.
For this, you have to collect few documents before proceeding for filing of Income Tax Return. After submission of Income Tax Return, Income Tax Department assesses the Income details available in Income Tax Return. Then they issue the Assessment Order specifying the Tax Payable or Tax Refund if any for that financial year.
Assessee is expected to comply with the assessment order issued by Income Tax Department within prescribed time given in the order itself. LegalRaj Expert also helps to comply for the Income Tax Notice as per your requirement.
The law states that income tax return must be filed every year for an individual or business who receives income during the financial year subject to income limit specified by Income Tax Department for that financial year.
It is advisable to file Income Tax Return on or before due date and taxes should be paid on time to avoid further interest, late fee or penalty.
Consequences of Late filing of Income Tax Return
1. Interest and Late Fee : Interest @ 1% per month or part thereof will required to be paid for period calculating from due date of IT Return submission to Actual date of IT Return submission.
For Income tax returns of F.Y. 2017-18 and onwards, late fee of Rs.5,000 will be charged for returns filed after due date but before 31st December. If returns are filed after 31st December, a late fee of Rs.10,000 shall apply. However, late fee will be Rs.1,000 for those with income up to Rs.5 Lakhs.
IT Refund processing also gets delayed due to delayed IT Return submission.
2. Carry Forward of Losses not allowed to set off : Losses incurred (other than Loss from house property) are not allowed to be carried forward to subsequent years to be set off against the future gains in case where return has not been filed within the due date.
- All major banks ask for a copy of Income Tax Returns to decide the loan limit for you.
- To Claim Refund due from Income Tax Department. Otherwise you will have to forget the Refund.
- To purchase Insurance Policy of High Value. Insurance Company asks to submit Income Tax Returns to verify your Annual Income.
- For Self Employed Persons eg. Lawyers, Doctors, CAs, Architects etc. Income Tax Returns considered as Proof of Income. Hence Overdraft/Cash Credit Facilities sanctioned on basis of Income details submitted in Income Tax Return for the relevant period.
- Usually needed at the time of application for Government Tenders.
- Important Supporting for Visa Processing.
- To Carry forward Losses which can be adjusted against Capital Gain in future years.