Filing Income tax return is a mandatory work to be done by every salaried individual. Every individual have to pay taxes as per the income earned and whose salary exceeds the threshold limit. A detailed view in respect filing income tax return has been illustrated below which will help you to have a clear perception of return filing –
Who is required to file return of Income: Every individual, whose income during the previous year exceeds the threshold limit as prescribed, will have to file return of income with the Income Tax Department or log on to www.incometaxefiling.gov.in for filing and processing of returns.
Due date for filing return: The due date for filing Income Tax Return for salaried individuals is 31st July 2012 for F.Y. 2011-12 or A.Y. 2012-13.
Which forms to be used for filing return: Different forms have been circulated by the department in order to file returns. Some of them are ITR -1, ITR -2, ITR -3, ITR -4 and the like. Different forms can be availed by different assesses depending on the nature of income earned.
ITR -1 or SAHAJ: Can be used by individuals having income from salary, house property, interest income and exempt income.
ITR -2: Can be availed by individuals having income from salary, House property, Capital gains and income from other sources.
ITR -4: Can be used by individuals having business or profession income earned.
Mandatory requirement (PAN): PAN card i.e. Permanent Account Number card is a mandatory requirement for filing income tax return. PAN Card is also required for several other transactions like opening bank accounts, foreign travelling, purchasing of immovable properties etc. Without PAN card return filing cannot be done as PAN no. is an important requirement and wrong PAN no. will cause delay in filing Income tax return of any individual.
Income to be considered: For filing Income tax return the department considers the following incomes earned by the individuals under the different heads i.e.
- Income from Salary
- Income from House Property
- Income from Business or Profession
- Income from Capital Gains
- Income from Other Sources
All income has their different meaning for filing returns and has wide impact. For salaried individuals whatever received in cash, kind or other from his employer constitute of income and in case of business the net profit earned is the total income. Thus, income has great impact on filing return.
Income not forming part of Total Income: There are certain incomes which do not form part of total income earned by the individuals. Some of them are as under:
- Any payment received under LIC (Life Insurance Cooperation)
- Any payment or interest received from a PPF (Public Provident Fund)
- Any dividend received from Mutual Funds or on Equity shares.