All You Need To Know About Itr Filing

By Author: Janvi sharma
Total Articles: 6
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Income Tax Laws state that Income tax filing should be done every year. If you have paid excess tax in a year, you are eligible to receive an income tax refund. Every business and individual should file a return on their income every year. There is a particular date before which you should file tax returns. If any company or individual fails to return income tax return before this date, they must pay a penalty.

Who is required to file ITR?
Every individual including the company must do Income Tax return filing in India before the due date. ITR Filing criteria in India are as follows:

1. Individuals below 60 years of age with an annual income of INR 2.5 Lakh
2. Individuals above 60 years but below the age of 80 years with an annual income of INR 3 lakh
3. Individuals above the age of 80 years with a yearly income of INR 5 lakh
4. Every firm and company
5. Residents of India
6. Individuals who have deposited an amount of above INR 1 crore in a bank account.
7. Individuals who pay electricity bills of more than INR 1 lakh
Due Date to File ITR

ITR filing ...
... should be done every year between April and March of next year. Now, let us discuss the due dates of ITR filing in India below:

1. Taxpayers should submit a transfer pricing report by November 30 the end of that tax year.
2. Company, working partner, or other taxpayers must get their accounts audited by 30th October by the end of that tax year.
3. Others must do ITR Filing by 31st July by the year-end.
Timely Filing of ITR and Its Benefits

Income tax filing is a necessary step every year for a company, firm, and other individuals. There are different benefits of timely filing of ITR such as:

1. Saves individuals from liability
If any company or individual fails to file ITR in any year, they must pay interest of about 1% every month or part of the month. To avoid interest penalties, you must file ITR before due dates. This rule even applies to companies and firms.
2. Reduces the risk of penalties
Any late fee in case of ITR filing will put you into trouble. You may have to pay INR 10,000 if you are late in filing income tax returns. Apart from that, you may have to pay other fees and penalties for late filing of income tax. Timely filing of ITR will prevent you from paying extra fees.
3. Acts as an ID proof
ITR for individuals acts as identity proof in case of applying for legal documents such as a passport, Aadhar card, and PAN card. You can also use IT returns in other places where you need to submit ID proof.
4. Helps to get loans
Do you want to expand your present business or buy a new home in a few years? Then you must file ITR every year. Your ITR will act as a legal document while applying for any kind of loan. It also helps to get loans quickly in some weeks.

Why Should You File ITR?
Income Tax Return for individuals and businesses is an important procedure. Every company, firm, and individual must file ITR every year to get certain benefits. There are many reasons to file ITR such as:

 Helps in developing nation
Every individual must file ITR every year to develop the country. Amount paid by citizens as a tax is used in developing the infrastructure of the country. Besides, this amount is also used in carrying out various developmental activities in the nation.

 Helps to carry forward losses
Business losses incurred during the year can be carried forward to the next financial year by filing ITR only. You can save your new business from losses by paying income tax timely. Moreover, it helps to build a good image of your business.

 TDS refunds
You can ask for a deduction in case of TDS by filing ITR timely. Income tax authorities will calculate net tax liability and adjust the TDS paid.

 Helps to apply for the visa
If you want to travel abroad to promote your new business, you must file ITR for business regularly. It will also help you to get credit cards easily to buy an asset. You will get visa quickly by filing ITR timely.