ITR or Income Tax Return is a process through which you send your different sources of income in a particular financial year and the taxes paid against them to the Income Tax Department Of India via a form.
An ITR form is to be duly filled and sent to the Income Tax Department every financial year that starts from 1st of April of the current year to 31st March of the next year. To calculate your yearly tax precisely, you can use an income tax calculator.
By submitting your details, you agree to PNB MetLife's Privacy Policy and authorize PNB MetLife and/or its authorized service providers to verify the above information and/or contact you to assist you with the policy purchase and/or servicing. You have the option to opt-out of this contact authorization by un-checking the box. The authorization provided by you herein will supersede all earlier authorizations/registrations made by you in this regard.
The income can come from a business, monthly salary, rental income, interest income from investments, and more. Dividend on stocks, lottery winnings, royalty income, and any other form of income is also taxable. So, the ITR form should contain all these details as well.
In this blog, we will understand what is income tax return, ITR meaning, benefits of filing income tax return, and the filing process in detail!
Income Tax Return is a form that contains details related to your gross income, taxes, deductions that you have claimed, and exemptions that you are eligible for. So, it is an important document for every taxpayer in the country.
The individuals who are under 60 and fall under the taxable income bracket must fill the ITR form every year. If your total income does not exceed Rs. 2,50,000 in a financial year, you don’t have to pay any income tax. The limit for senior citizens is Rs. 3,00,000. The individuals above 80 have to pay income tax only if their yearly income exceeds Rs. 5,00,000.
The Income Tax Return filing also includes payment of the taxes according to the income tax slab you qualify for.
Now that you have understood what is Income Tax Return, let’s look at the different types of ITR forms and their purpose:
| ITR Form Type | Applicability |
|---|---|
| ITR 1 | ITR 1 is also known as Sahaj. It is a type of ITR form applicable for an individual whose total income from salary, pension, and other sources of income is up to Rs. 50,00,000. Agricultural income up to Rs. 5,000 can also be included in the income particulars while filling this form. However, you must remember that all the salaried employees cannot fill this ITR form to file taxes. |
| ITR 2 | Those who don’t qualify to fill the ITR 1 form and do not have income related to business profits or professional fees can fill this ITR form. |
| ITR 2A | This ITR form is for salaried individuals who own more than one house but don’t have any capital gains from them. It means that this ITR form is for those who invest in property for long term capital gains and pay Securities Transaction Tax. |
| ITR 3 | The individuals who earn from business or professional must use the ITR 3 form while filing IT Return. Those who earn commission, interest, bonus, or salary due to business partnerships must also use this form while filing ITR. |
| ITR 4 | ITR 4 is also known as Sugam. Businesses, undertakings, professions, and HUFs (Hindu Undivided Families) can use this ITR form if their income exceeds Rs. 50,00,000 in a particular financial year. It means that this form is for you if you earn income from profession, business, rental, or salary income. |
| ITR 4s | Those who have opted for presumptive income scheme according to the Section 44E and Section 44AD of the Income Tax Act can file their IT Return using this form. |
| ITR 5 | This form is applicable for LLPs (Limited Liability Partnerships), business trusts, firms, AJPs (Artificial Juridical Persons), BOIs (Body of Individuals), Estate of Deceased, AOPs (Associate Of Persons), investment funds, and estates of insolvents. |
| ITR 6 | The companies registered under the Companies Act 2013 or Companies Act 1956 can use the ITR 6 form to file IT Returns. Organisations and firms who do not claim tax exemption under section 11 can also use this form. |
| ITR 7 | Political parties, NGOs, charitable trusts, religious trusts, universities, schools, colleges, and other types of groups or organisations can use this form to file ITR. |
Note: For more details on different types of ITR forms, one must visit the official website of the Income Tax Department.
Now that you know ITR meaning and how to file it, let’s go through the list of documents required while filing the ITR:
The key benefits of ITR filing are mentioned below:
A comprehensive financial planning requires smart management of taxes. Filing ITR every year helps you cultivate a discipline that is essential to avoid tax penalties. It also makes you aware of the different taxable income and instruments that can be used to save taxes.
The full form of ITR is Income Tax Return. It is a form which helps you declare your income, calculate tax liabilities, and claim deductions. Filing the ITR form for every financial year is mandatory for both individuals and businesses.
Any person whose total income exceeds the exemption limit set by the Indian Tax Department must file ITR. Businesses, professionals, partnership firms, LLPs, trusts, NRIs, and NGOs are also required to file ITR if their income exceeds the stipulated exemption limit.
An ITR file means a document that contains your personal information, income details, exemptions, deductions, and taxes paid in a financial year.
It is not mandatory to IT Return if your income is below the taxable limit. However, if you want to claim refunds or create an income proof to apply for loans, you can file the ITR voluntarily.
Upon failing to file ITR on time, you will have to pay a penalty up to Rs. 5000 as per the Section 234F of the Income Tax Act.
The following documents are to be submitted while filing ITR:
Visit the official website of the Income Tax Department and check the status of ITR filing using your PAN number and password.
A tax refund can be claimed by mentioning it in your ITR form. Once the ITR is filed, the refund will be credited directly to your bank account.
The penalties can range from 50% to 200% of the tax amount in case you misreport or underreport the details. You may also be subject to legal prosecution depending upon the severity of the false information.
Piyush Kataria, SEO Manager at PNB MetLife, is a seasoned digital marketing strategist with over a decade of experience in optimizing websites for search engines. His expertise extends to keyword research, content strategy, technical SEO, and link building, all of which have been instrumental in driving organic traffic growth at PNB MetLife. With a strong foundation in life insurance, Piyush leverages his industry knowledge to create targeted and effective SEO campaigns.
Sakshi Malhotra is a seasoned marketing professional associated with the Life Insurance industry since 2007. At PNB MetLife, she heads Digital Marketing and Direct to Customer line of business. She is responsible for driving effective customer engagement through the company’s website and social media channels. In addition, she drives customer online buying journeys to help them buy the right product.
Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra.
| Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers! IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint. |
By submitting your details, you agree to PNB MetLife's Privacy Policy and authorize PNB MetLife and/or its authorized service providers to verify the above information and/or contact you to assist you with the policy purchase and/or servicing. You have the option to opt-out of this contact authorization by un-checking the box. The authorization provided by you herein will supersede all earlier authorizations/registrations made by you in this regard.
Get Trusted Advice
Ask khUshi
Hi! I’m khUshi. How can I help you?
