The Governments of most of the countries of the world tax the rich people and use the money for the welfare of the poor people. The amount of the tax varies by the income of the person. The more the income, the more is the tax. Mostly though, the tax is deducted at the source itself, but in some cases, it is not done, or not possible. Hence, in such cases, the Individuals themselves have to give back the tax amount to the government. This is specifically called as the Income Tax Returns.
The Income Tax department of the Government of India also called the IT department is a separate government agency, which is mainly managed by the Ministry of Finance. The Income Tax returns is a form in which an assessee files information about his tax and income to the IT Department. The various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. The Income Tax Rules of 1962 and the Income Tax Act of 1961, obligates the citizens to file their returns to the IT department at the end of every financial year. There is a specific due date before which these returns should be filed. The above forms of ITR 1 to ITR 7 serve a different purpose. The Individual must find out the appropriate form for himself/herself and file the returns before the due date.
According to taxation in India following conditions are needed for the individual to file tax returns:
- Is the owner of a vehicle.
- Pays for foreign travel for himself/herself or another.
- Is a member of a club with entrance fees of at least 25,000.
- Has a valid credit card.
- Possess a property.
The filing of IT returns is to be done on the website https://incometaxindiaefiling.gov.in/ the process can be accomplished in two ways:
1. Offline + Online
The Online process can be described as follows:
- Go to the above-mentioned website.
- Click on the “Submit Return” on the left side of the page.
- Register on the website if you haven’t yet. You will make a User ID which is mostly the PAN no. and a password and then login with these credentials.
- Go to e-file and click on the Income Tax Return.
- Choose the correct form for yourself from the ITR 1 to ITR 7.
- Fill in all the accurate details in the form.
- Confirm and submit it.
In the offline+online process, the difference is that you download the correct form, save it on the PC in an XML file, fill it completely, then upload it on the website. Thus, this is not so difficult process after all. Some documents are also required besides the form for filing IT returns. It differs from person to person. But some of the common ones are, bank account details, PAN no, Form 16, Pay Slips etc.
Filing Tax Returns is very important for the welfare of the country, especially the poor people. The IT department correctly finds out who has avoided that in raids and takes appropriate action against that person.