Income Tax Filing

Income Tax is a direct tax and come under Central Board of Direct Tax (CBDT). Income Tax levy, tax rate, slab rate and all other procedures is under Income Tax Act 1961. Every person who accrued or earned income in India directly or indirectly come under the preview of Income Tax Act, and liable to pay income tax as per income tax rules. The assessee can claim deductions and exemptions as per Income Tax Act 1961. Every person come under the scope of Income tax act must obtain a Permanent Account Number (PAN) issued by the Income Tax Department. Every person who have valid PAN allotted by ITD must quote the pan on all financial transaction with  limits specified by the Income Tax Act.   

Every individual person have mandatory efiling income tax return if their annual income is above the specified limit. In the case of short term and long term capital gains income, this limit is not applicable and must furnish and pay income tax return as per Income Tax Rules. In case of non individuals like partnership firms, companies, LLP, Society, AOP, BOI etc must efile income tax return (itr) without considering the amount of turnover. They must efiling ITR even if the annual turnover is NIL. The efiling income tax return are controlled and managed by Income Tax Department through its online portal ” incometaxindiaefiling.gov.in”.

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The process of filing the income and respective tax details of a business or individuals as per Income Tax Act, 1961 is called Income Tax Return. Now income tax department makes the ITR efiling electronic, popularly known as e-Filing. The income tax return have different for various class of persons who have different streams of income. Now Income Tax Department have seven types of ITR (Income Tax Return Forms). They are ITR1, ITR2, ITR3, ITR4, ITR5, ITR6 and ITR7. They have also lot of other forms which have applicable to business and individuals have audited and non audited cases, nature of income and volume of Incomes.