ITR Filing

Documents Required for ITR eFiling

When preparing for your e Filing of Income Tax Return in India, it’s important to have all necessary documents handy to ensure a smooth and accurate submission process. Here’s a comprehensive list of the documents you may require for Income tax filing:

General Documents for ITR filing

• PAN (Permanent Account Number): Essential for every kind of financial transaction and tax-related activity.
• Aadhaar (Linked to PAN): Required for verification and linking to your tax records.
• Bank Account Details: We need to process any potential refunds or verify financial details.

Income-Related Documents

• Salary Slips: To verify your income from employment.
• Rent Receipts: If you are claiming House Rent Allowance (HRA).
• Form 16: Issued by your employer, detailing the tax deducted at source on your salary.
• Form-16A: For TDS on Income other than salary.
• Form-16B: For TDS on the sale of the property.
• Form-16C: For TDS on rent.
• Form 26AS: Your tax credit statement, which shows all taxes that have been deposited against your PAN.

Deductions and exemptions-related documents

• Interest Certificates: These are from banks and post offices for savings accounts and fixed deposits.
• Home Loan Details: If you’re claiming deductions on home loan interest.
• Proof of Tax-Saving Instruments: Includes life insurance, health insurance, Public Provident Fund (PPF), National Savings Certificates (NSC), ELSS mutual funds, etc.
• Income from Capital Gains: Documents related to the sale of assets like stocks or property.
• Rental Income: Lease agreements and rent receipts if you have rental property.
• Foreign Income and Dividend Income Proofs: Documents verifying income from foreign sources and

Eligibility for Income Tax Filing  

In India, the obligation to file an Income Tax Return (ITR) arises under certain conditions. One of the primary criteria for Income tax filing is when your gross total income exceeds the basic exemption limits, which are age-dependent:

• Individuals under 60 years: Rs 2.5 lakh
• Individuals between 60 and 80 years: Rs 3.0 lakh
• Individuals over 80 years: Rs 5.0 lakh

However, there are other specific circumstances that required for an efile ITR, even if your income is below these thresholds:

High-value Transactions: You must file an ITR if you have:

• Deposited Rs 1 crore or more in one or more current bank accounts.
• Deposited Rs 50 lakh or more in one or more savings bank accounts.
• Spent over Rs 2 lakh on foreign travel.
• Incurred electricity expenses exceeding Rs 1 lakh during the financial year.
• Had TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) exceeding Rs 25,000 (or Rs 50,000 for senior citizens).

Business and Professional Income:

• Businesses: Mandatory if your total sales, turnover, or gross receipts exceed Rs 60 lakh during the financial year.
• Professionals: Mandatory if gross receipts exceed Rs 10 lakh during the financial year.

• Who Needs to eFile an Income Tax Return?

  Income tax return filing is not only a legal duty but also a financial responsibility that applies to various groups under different circumstances. Here’s a detailed look at who is required for ITR filing:

  Salaried Individuals

  If your total income before deductions under Sections 80C to 80U exceeds the basic exemption limit, you are mandated for income tax filing.

  Firms

  All corporate entities, including private limited companies, LLPs (Limited Liability Partnerships), and traditional partnerships, must file their ITR filing annually, regardless of profit or loss.

  Directors and Partners

  Individuals serving as directors in private limited companies or partners in LLPs are required to efile taxes reflecting their income and financial activities within the company.

  Dividend Earners

  If you receive dividends from sources such as mutual funds, bonds, equities, fixed deposits, and interest, you need to done the ITR efiling. This Income tax ITR filing ensures that all sources of income are properly reported and taxed if applicable.

  Charity and Religious Trusts

  Income received from managing charity funds, religious trusts, or voluntary contributions also necessitates the Income tax return filing meant to maintain transparency and adherence to tax laws.

  Tax Refunds

  Those eligible for tax refunds, including individuals and businesses, should file taxes online to claim refunds on taxes previously overpaid.

  NRIs and Tech Professionals

  Non-resident Indians (NRIs) and technology professionals must file an income tax return if their income derived from India surpasses the exemption limit or involves specific financial transactions.

Penalty for Late Filing Income Tax Returns

When filing your Income Tax Return (ITR), it’s crucial to meet the Income tax return filing last date to avoid penalties and maximise benefits:

• Interest: If you miss the deadline, under Section 234A, you will incur an interest charge of 1% per month or part thereof on any unpaid tax amount.
• Late Fee: As stipulated by Section 234F, a late filing fee is imposed if you missed the last date to file ITR. The fee is Rs. 5,000 but is reduced to Rs. 1,000 for those with a total income below Rs. 5 lakh.
• Loss Adjustment: Timely filing of your ITR allows you to carry forward losses from investments or business activities, which can be offset against future income tax liabilities. Failing to file your Income tax returns on time results in forfeiting this benefit.