Step by step Explanation income tax return(ITR)

What is ITR?

Efiling Income Tax Returns First, let us understand what filing ITR means. When you file your Income Tax Return, it is a proof that you have an income for which you have paid tax. According to the Income Tax Act, 1961, you have to file ITR every year. Filing it provides legality to what you are earning. Not filing it means that you as a person have not disclosed your income. The ITR gives a standard proof of income to a person and helps to establish a record with the tax department.

Also, if you have paid tax more than what is required, you will have to file the return to get a refund for the excess amount paid. efiling Income Tax Returns, Income Tax refers to the tax levied by the government for financing its various operations. It is counted on an annual basis, of the income earned in the previous year, also called the Assessment Year.

In simple language previous year (Assessment year) is the financial year in which the income is earned with profit. The earnings earned in the course of this previous year is charged to tax in the assessment year. The charge of Income Tax in India is executed according to the provisions made under the Income Tax Act. Income Tax additionally works as an economic stabilizer that aids in distributing wealth among people equally.

According to India tax laws earnings from the following resources is deemed taxable:

  1. Salaries
  2. Earnings from property
  3. Profits of enterprise or professions
  4. Capital gains
  5. Income from other sources

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