Every business has to file various returns with appropriate government agencies. SPA are filing these returns.
Tax is a central element to the revenue generation system of the Indian government. Among the multitude of taxes present in the system, income tax is the one that deals with the taxation of the earning of every individual, firm or organisation in a financial year. The earning or income could be in the form of regular wages, interest, dividends, capital gains or any other profits.
What is Income Tax Return?
Income Tax Return is a proof that you have paid your income tax. It contains details about your annual income and the amount of tax you have paid. Every year, any person who earn taxable income have to file Income Tax Return (ITR). Filing ITR will help you in getting a refund in case you pay more tax than what you are required to pay. If you fail to file your ITR, you might have to pay penalty or face legal consequences.
How to e-File ITR offline?
To e-File ITR online, you have to
- Visit the website of the Income Tax Department of India and choose the option for e-filing.
- On selecting this option, you will be directed to another website where you can select the ITR form that is applicable to you.
- The IT Department has two utilities and you can download any one of them. These utilities are Excel Utility and Java Utility.
- After downloading the utility, open the file and fill the form.
- Validate the information, calculate the tax and click on Generate XML.
- Save the form and upload it on the e-filing website of the IT Department. Once you have uploaded the form and attached all the documents, click on submit. If you download JAVA utility, then:
- After downloading the utility, open it and click on ‘Prefill’.
- Enter User ID, Password, DOB/DOI and choose Prefill Address.
- Enter details, calculate the tax and save the XML file.
- Click on Submit.
- Bank Statement.
Filing an Income Tax Return – Is it Necessary?
Currently it is mandatory for one to file income tax returns in India if the following conditions are applicable –
- If the gross total annual income (before deductions under 80C to 80U) is Rs. 2,50,000 (for ages less than 60 years), Rs. 3,00,000 (for ages 60 years but less than 80 years) and Rs. 5,00,000 (for ages 80 years and above)
- If it’s a company or firm, irrespective of the profit or loss made in a financial year
- If a tax refund needs to be claimed
- If a loss under a head of income needs to be carried forward
- If being a resident of India, one has an asset or financial interest in any entity located outside India
- If being a resident of India, one is a signing authority in a foreign account
- If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust
- If one is applying for a loan or a visa
Benefits of Filing Income Tax Return Online
Though it might be a tedious process to keep a track of every detail needed in order to file the proper details for the Income Tax Return, it actually helps a lot when it is done in the earnest and ahead of time, preferably, online –
- Online filing of returns within due date as applicable time to time or every financial year, and being a month or two in advance from due date in filing the income tax returns actually ensures one encounters lesser traffic and the entire process goes much smoother.
- In case one has missed filing tax returns for the previous year, every additional day from due date increases the penal interest. Thus, filing a tax return in advance is very advisable.
- Creating a favourable financial history – Online filing of the income tax returns actually creates a history of your financial records with the tax department in a much faster and easier way. This history is favoured by a lot of organisations, be it financial or otherwise, which you might have a business relationship with in the future.
- Proof of financial record – Having an ITR-V form is always handy, since one can readily furnish the same as a proof for any kind of financial liability or opening a line of credit.
SPA is taking care of all the assessee to file the return in time and take care of all the tax planning to minimise tax liabilities as per tax laws.
The above defined details are changing time to time, so before taking any final decision, you may contact SPA.