Income Tax Returns Eligibility
Income Tax Returns – It is the time of the year when every earning Indian is gearing up to file their Income Tax returns. Before you start worrying about how to do it by yourself, we are here to explain you the basics of the same.
In this article, we will explain if you are eligible for filling the tax returns and why is it important to file Income Tax Returns.
Eligibility to File the Income tax returns
The Income Tax Act states that any person whose age is currently less than 60 years and their annual income is more than Rs 2.5 lakhs they have to file their income tax returns. Those persons who are senior citizens – for them the cut-off is Rs 3 lakhs. And Rs 5 lakh is cut-off for those whose age is more than 80 years.
Other different criteria for a company or an individual to file their income tax returns are as follows:
- In case you want a refund, the return filing is compulsory.
- If it happens that a company has faced loss or income in a given financial year, it is compulsory for them to file the returns.
- Suppose if you have a property or financial interest outside the country and you are currently residing in Indian as its resident – then you are supposed to file IT returns.
- The above mentioned rule holds true even if an Indian authority has a signing authority in foreign account.
- If a person is getting any income from a property registered under religious purpose, charitable trust, political party or research, hospital, medical institution or any such property.
- Under the Annual Information Return, if a person has entered any transaction, then she has to file the IT returns.
What is Income Tax Filing and Why it is Important
An income that a person generates from different sources in a particular financial year, the tax that she has already paid, tax liabilities and refunds that she is supposed to get – It return is the summation of all such returns. Since it is the disclosure of a person’s income – therefore its compulsory to file it. It is also considered as the legal proof of a person’s income.
Filing the IT returns on time has its own perks. If a person’s tax liability is lower than what she has already paid, then she is eligible to get many refunds. They are important if one has to apply for the loans. If you are about to apply for the credit cards at certain banks, then they could ask for your It return proof. As a corporation you become eligible to apply for tenders. If you have filed your returns on time, then as a startup you become eligible to get the funding. Since it is a legal proof of our income, hence it is advised to file it even if one is not eligible as you can use it later on to avail the loan benefits.
Why It Is Important to file Income Tax Returns
The biggest advantage of filing the IT returns is that it is our legal proof. Hence, it is advisable to file it even if a person is not eligible. Financial Discipline is its biggest advantage. It helps in getting home loan or something similar quickly. Those who are eligible to get certain tax benefits, for them filing IT returns makes it easy to get those benefits.
The Process of Filing Income Tax Returns
It seems that the process of filing IT returns is a difficult one. However, it is not so. Once a person understands their sources of income and the deduction process, it becomes easy to avail the benefits.
There are two ways to file the IT returns – Online or Offline. If due to some reason, you feel that you can’t file your IT Returns then you can do it through a Professional who would do it on your behalf by charging a small fee.
The Income tax form is known as ‘Sahaj.’ One can collect it from the nearest IT Office or download it from the website. One can also file it online by visiting the website and creating an account on it. All you need to do is to download the software, fill the necessary details, then upload it on the website and click ‘Submit.’ This will generate ITR-V form as you complete this process. The form needs to verified within 120 days of submitting the returns. It would be done physically or online.
Last Date to File the IT Returns this Year
The last date to file the Income Tax returns has been extended from July 31 to August 31, 2019 for the financial year 2018-19.