Tax filing refers to the process of reporting your income, deductions, and other financial information to the relevant tax authority, such as the Internal Revenue Service (IRS) in the United States. Filing taxes is typically an annual requirement for individuals and businesses to determine the amount of tax they owe or the refund they may be eligible to receive.
Required Documents for Basic Tax Filing
Deduction and Credit Documents
Bank& Investment Statements
Previous Year's Tax Return
Benefits of Filing Income Tax
Identifying what worked, what didn’t work, and where changes can be made.
PROOF OF INCOME/ NET WORTH
The best authentic document in support of claim of income level Your Tax Return documents are proof of your financial investments.
A stitch in time saves nine, the earlier you file the sooner you will get the refund. Taxpayers receive a refund at the end of the year when they have too much money withheld.
While applying for a visa, foreign embassies/consulates of many countries ask to furnish the last 3 Years Income Tax Return filed copies.
TO CARRY FORWARD LOSSES
Unless you file the ITR, you cannot recompense your expenses/losses in the previous financial year to the current.
Who is Eligible for Tax Filing in India?
In India, tax filing eligibility is determined by the Income Tax Act, 1961. The following individuals and entities are generally required to file a tax return in India:
Individuals with total income exceeding the basic exemption limit, which is subject to change each financial year.
Individuals who possess assets located outside India or have signing authority in any account outside India.
Non-resident individuals with income originating from India, such as salary, business income, capital gains, or rental income.
Non-resident individuals claiming a refund of excess tax deducted at source (TDS).
Hindu Undivided Families (HUF):
HUFs with total income exceeding the basic exemption limit.
Companies and Firms:
All Indian companies, including private limited, public limited, and one-person companies, are required to file tax returns.
Partnership firms, including LLPs (Limited Liability Partnerships), need to file tax returns.
Trusts and Charitable Institutions:
Trusts, including religious, educational, or charitable institutions, are required to file tax returns if they meet certain income thresholds.
Individuals or entities having losses that they want to carry forward or set off against future income.
Individuals or entities claiming a refund of excess tax paid.
*It's important to note that the income thresholds, tax rates, and other requirements can vary each financial year.
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Filing income tax returns is a crucial aspect of financial management, and it can be overwhelming and time-consuming.
Tax Filing Services
Personal Tax Return Filing
Personal tax return filing refers to the process of reporting your individual income, deductions, and other relevant financial information to the tax authority in India. It involves preparing and submitting a tax return form to calculate your tax liability or determine any tax refund.
Annual Compliance - Proprietorship
Proprietorship firms file the Proprietor income tax return just like the LLPs and the Companies registered in India. In the legal sense, the proprietorship and the proprietor are considered to be one. Hence, the income tax return filing of the proprietor and the proprietorship are the same.
Annual Compliance - Partnership Firm
A partnership firm is a type of entity where more than one person is carrying out business under one entity. Partnerships firms in India are of two types - Registered partnership firms and unregistered partnership firms.
All businesses operating in India are required to file income tax return each year. In addition to filing income tax return, a business may also be required to file TDS return and pay advance tax to stay compliant under the Income Tax Act.
ITR-1 Return Filing
The Income Tax Department has categorized the taxpayers into the group to ease the tax compliances this categorization is done based on the income and the sources of the income. ITR 1 Return filing in India is for people with an income of up to Rs.50 lakh.
ITR-2 Return Filing
ITR 2 Form is an Important form income tax return form that is used by the Indian Citizens as well as the NRIs to file the return with the Income-tax department of India. The taxpayers who are not eligible to file ITR 1 can file ITR 1 to file the income tax returns.
ITR-3 Return Filing
ITR 3 Form is applicable for the individuals and Hindu Undivided Families that earn profit and gains from business or profession. If the individual or the Hindu undivided family is having an income as a partner of a partnership firm that is carrying out business then ITR-3 cannot be filed as in such cases.
ITR-4 Return Filing
Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Section 44D, 44DA, 44AE of the Income Tax Act,1961. But this is subject to the business turnover limit i.e in case if the turnover is exceeding Rs.2 crore then the taxpayer is required to file ITR 3.
The taxpayers are supposed to file the Income Tax returns based on the income that is earned by them in the financial year and the kind of entity that it falls under. ITR 5 Form filing is to be done by the Association of Persons, Limited Liability Partnerships, Body of Individuals, Estates of the deceased, Artificial judicial person, business trust, estates of the insolvent, business trust, and investment fund.
ITR 6 Form is to be furnished by the Companies to e-file the income tax returns if they are not claiming exemption under Section 11 of the Income Tax Act 1961. Under the Income-tax Rules, the Companies that can claim an exemption under section 11 are those that have income from the property that is held for the charitable or religious person.
ITR-7 Return Filing
ITR 7 Form filing is done by the companies who service the income from the properties that are of charitable or religious purposes. Properties that are held under the trusts or legal obligation in parts or even wholly are included in the category. ITR taxpayers can fill the ITR 7 Forms by providing the returns through a bard coded form, physical paperback forms, or the digital signature mode, or the submission of return verification through ITR Form V.
Income Tax Notice Response
The Income Tax Department sends the notices for various reasons like not filing the income tax returns, any defect while filing the returns, or other instances where the tax department is requiring any additional documents or information. Nothing is frightening or alarming about the notice that is received. But the taxpayer has to first understand the notice, the nature of the notice, the requestor's order in the notice, and take steps to comply.
TDS Return Filing
Apart from depositing the tax the deductor also has to do TDS return filing. TDS return filing is a quarterly statement that is to be given to the Income Tax department. It is necessary to submit the TDS returns on time. TDS return filing can be done completely online. Once the TDS returns are submitted the details will come up on Form 26 AS.
DIN eKYC Filing
A director identification number (DIN) is a unique identifying number assigned to a person who wishes to become a director or is already a director of a corporation. DIN is obtained by submitting an application in eForm DIR-3, which was originally intended to be a one-time process for anyone wishing to become a director of one or more companies.
Form 16 Issuance
Form 16 is a certificate that employers issue to their employees. It is a validation that the TDS has been deducted and deposited with the government authorities on behalf of the employee of the organization. Form 16 gives a detailed summary of the salary paid to the employees and the deducted TDS. TDS Form 16 contains all the information that an individual needs to prepare and file the income tax return.