A tax return is the tax form or forms used to report income and file income taxes with tax authorities such as the Internal Revenue Service (IRS) in the United States. Tax returns allow taxpayers to calculate their tax liability and remit payments or request refunds, as the case may be. In most countries, tax returns must be filed every year for an individual or business that received income during the year, whether through wages, interest, dividends, capital gains or other profits.
In this part of the return, the person preparing it must indicate all forms of income received during the year from all sources. Salaries, dividends, royalties and, in many countries, capital gains must be reported.
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 Assesses. Only those Forms which are filed by the eligible Assesses are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assesses and the category of the Assesses.
Income tax return (ITR) filing in India is a process where individuals and entities declare their income to the Income Tax Department of India. It is mandatory for individuals, Hindu Undivided Families (HUFs), and entities whose income exceeds the prescribed threshold limits to file their income tax returns. Here’s a general overview of the process: