Income Tax Return (ITR)
Income tax return is a working of all income having split in all types of heads like salary, House property, capital gain, business profession and others source.
It is calculated after considering standard deduction available head wise and deduction on total income.
There are 2 regimes in which assesse can file ITR. Old regime and New regime, in both regime Tax rates are different and availability of deduction on total income are different.
Based on amendments, every year calculation, Tax rates and deductions may differ.
Now a days on Income Tax portal, an assesses having knowledge can directly file related ITR.
Five heads in ITR
There are five heads in ITR in which total income needs to be bifurcated.
Salary income
A person doing job at employer and receiving salary including all perquisites, perks, allowances and many more are covered in Salary Income Head.
From Income Tax standard deduction is allowed to employees on their total income which varies in Old regime Vs New Regime.
House property
A person having income of rent from house property or commercial property needs to show this income in this head. Here Interest paid against loans to financial institutes on property will get as deduction too against income chargeable to tax.
Capital Gain
Any gain which may arise on property or investment falls in this head. If funds are invested in share market than gain may be of short term capital gain or long term capital gain otherwise gain of Future and option may also arise. If amount invested in land, house or commercial property and it has been sold than capital gain or lose arise will be taxable here.
Business or Profession
A person either doing business as trader or manufacturer will be called businessman and a person like doctor, advocate, engineer etc will be called professional person. Their income will be chargeable in this head
Other source
Income received as saving bank account interest, Fixed deposit interest or any other interest or divided like wise income which are not chargeable on above four heads are covered here.
Benefits of ITR
A true citizen files ITR on time and pay taxes to government for nation building which helps country to develop further. As assessee can produce ITR to the financial institute as proof of income to avail loan.
Mistakes in ITR
If any mistake took place while filling ITR then it can be rectified by filling revise ITR in prescribed time.
Tax liability or Refund
At the time of filling ITR if tax liability arises then tax to be paid , if already TDS is there than tax liability get adjusted from TDS and balance amount needs to be paid or refunded by Income Tax department (ITD) along with interest.
Status of ITR
An assessee need to be careful till ITR is processed. ITD confirms whether any mistake is find out on data mentioned by asseesee in ITR or same data has been processed.
Various Reports: 26AS , AIS and TIS
Income Tax Department provides Three reports on portal called 26AS, AIS and TIS. These reports contains financial information relating to assessee gathered from various departments where assesse submits pan card or adhar card.