Income tax return (ITR) is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry forward of loss and claim refund from income tax department.

The return form can be filed with Income Tax Department in any of the following ways:

• • By furnishing the return in a paper form
• • By furnishing the return electronically
• • By furnishing the data in the return electronically under electronic verification code
• • By transmitting the data in the return electronically and thereafter submitting the verification of the return.

ITR return forms are attachment less forms and hence, the taxpayer is not required to attach any document along with the return of income. However, these documents should be retained by the taxpayer and must be produced before the tax authorities when demanded.

E-payment is the process of electronic payment of tax and e-filing is the process of electronically furnishing of return of income. Using the e-payment and e-filing facility, the taxpayer can discharge his/her obligations of tax payment and furnishing of return easily and quickly.

Filing of return is one’s duty and contributes to the development of the nation. Income tax returns validate credit worthiness before financial institutions and make it possible for tax payer to access many financial benefits such as bank credits, etc.

Benefits of e-filing return of income are:

• • E-filing can be done from any place at any time and it saves time and efforts
• • It is simple, easy, and faster
• • The e-filing returns are generally processed faster as compared to returns filed manually.

If a person who is required to furnish a return of income fails to do so within time prescribed, then he/she will have to pay interest on tax due. Late filing fees shall be payable if return furnished after due date.

Return of income which has not been furnished on or before the due date is called belated return. Any person who has not furnished a return of income within the time period allowed or within the time period allowed under a notice may furnish return for any previous year-at any time 3 months before the end of the relevant assessment year or before completion of the assessment whichever is earlier.

The excess tax can be claimed as refund by filling Income-tax return. It will be refunded by crediting it in taxpayer’s bank account through ECS transfer.

A return of income can be revised at any time during the assessment year or before the assessment made whichever is earlier. If original return has filed in paper format or manually, then it cannot be revised.

Yes, since legal proceedings under the Income-tax Act can be initiated upto 4 or 6 years prior to the current financial year, one must maintain such documents for this period. However, in certain cases the proceedings can be initiated even after 6 years, thus it is advised to preserve the copy of return as long as possible.

Yes, it can be claimed if an applicant is eligible to claim the same.

Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years.

Following precautions are to be kept in mind while filling the return of income:

• • File the return of income on or before the due date.
• • Tax payers should avoid practice of filing belated return
• • Compile and carefully study the documents to be used while filing the return
• • Taxpayer should identify the correct return form applicable
• • Carefully provide all the information in the return form
• • Confirm the calculation of total income, deductions, interest, tax liability/refund etc.
• • Ensure that other details like PAN Card, address, e-mail address, bank account details, etc. are correct.

Filing of income tax return is mandatory for every person whose income exceed maximum exemption limit. With effect from Assessment year 2020-21, it is mandatory for every person, to file the return if during the previous he/she:

• • Has deposited an amount in excess of Rs 1 crore in one or more current account maintained with a bank or co-operative bank
• • Has incurred aggregate expenditure in excess of Rs 2 lakhs for themselves or any other person for travel to a foreign country
• • Has incurred aggregate expenditure in excess of Rs 1 lakh towards payment of electricity bill.