Income Tax Return
Income Tax Return is the form in which assessee files information about his/her Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees.
Income Tax Return
Why should you file Income Tax Details?
- Tax compliance. If your income is above Taxable Income then it is mandatory to file Income Tax returns and pay taxes.
- Claim TDS deducted. TDS is deducted on services and employment, which can be claimed back on filing Income Tax returns.
- Create a strong financial profile, which will assist in loan applications or credit card applications.
- Claim TCS collected. In transactions such as vehicle purchase, TCS is collected by the seller which can be claimed on filing of Income Tax returns.
- Claim losses on your past years’ returns by filing Income Tax returns.
Income of Minors
- If both the mother and father are earning, the income of the minor is added to the income of that parent whose income is greater.
- If the parents are divorced, the minor's income is added to the parent's income who has the custody of the child.
- If both the parents are not alive, the income of the minor is not clubbed with the guardian, but instead a separate income tax return is filed.
- When a child earns an income by way of any work or from an activity for which he uses special talent or knowledge, the minor is required to file an income tax return separately.
- Income of a child suffering from any disability specified under Section 80U will not be clubbed with the income of the parent. A person is considered differently-abled when he is suffering from more than 40% of any of these - blindness, poor vision, hearing impairment, loco motor disability and mental illness.