The income tax (IT) return is the tax type or forms that utilized to file income tax with the Income Tax Department. The tax return is typically in a predefined database layout where the income figures used to estimate the tax accountability are written into the documents themselves.
When you file your tax return, it is evidence that you have an income for which you have paid tax. As per as the Income Tax Act, 1961, you have to file ITR per year. Filing it offers legitimacy to what you are earning every year. Not filing it means that you as an individual have not unveiled your income. The ITR provides a standard proof of income to a self and assists to set-up a record with the tax department.
Every person has a taxable income must file a tax return. At present, if you are under the age of 60 and have an income up to Rs.2 lakh, you are not liable for tax. If your income is above Rs.2 lakh is taxable.
The law states that tax returns should be filed every year for any person or business that procured income throughout the year, whether through usual income (wages), dividends, interest, capital gains or other sources.
Tax returns, despite of whether it associates to an entity or a business, should be filed by a particular date.
If the return displays surplus tax has been paid during a given year, the assesse is entitled for a ‘tax refund’, subject to the department’s explanations and computations.