What is ITR Filing?
ITR, also known as Income Tax Return, is a form which an assessee or a taxpayer has to file mentioning his income earned and the tax which is applicable to him to the Income Tax Department. Tax is extremely important for the development of the country for all the public expenditure and thus every person must file the tax which he has to. The Tax Department has declared and issued 7 different forms, namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. These forms are divided in accordance with the type and sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to, for example, individuals, HUF, Company, etc and are online ITR filing services
In India, it becomes necessary and mandatory for ITR filing online, if any of the following which is mentioned below are applicable to you. These conditions are:
If the gross annual income ranges from Rs. 2.5 lacs to Rs. 5 lacs, depending on the different age categories.
If there is more than one source of income such as house property, Capital gains, etc.
If in the financial year, you have invested and earned from foreign assets.
In case if the taxpayer is either a firm or a Company, the ITR has to be filled necessarily.
If you want to apply for a loan or visa, it is required
If there is a need to claim an income tax refund from the department.
About ITR-7 Filing
If the Firms, comPANies, local authorities, Association of Person (AOP) and Artificial Judicial Person fall under any of the following categories, then ITR 7 is filed.
Income from charitable /religious trust- Section 139(4A)
Income from a political party – Section 139 (4B)
Income from scientific research institutions – Section 139 (4C)
Income from university or colleges or institutions or khadi and village industries – Section 139 (4D)
The ITR 7 form can be mandatorily filed under the ITR return file online. The e-filing ITR is done as follows:
Firstly, you have to provide the return electronically under digital signature
Then by transmitting the data in the return electronically
Lastly submission of the verification of the return in Return Form ITR-V
Who isn't eligible to file the return?
The people who are not able to claim an exemption under any of the sections, namely, Section 139 (4A), Section 139 (4B), Section 139 (4C) or Section 139 (4D), are not eligible to file a return.