What is an income tax return?
Income tax return form ranges from ITR 1 to ITR 7, used for different types of income. Some income tax return forms are longer than the others, and they may need additional disclosures such balance sheet and a profit and loss statement information.
Why do you have to file income tax returns?
Even if you don’t meet the Rs.2,50,000 threshold, it’s a good practice to file or e-file your income tax return. An income tax return is an important document that you must produce at the time of availing a home loan, as it reflects your financial prosperity. An income tax return—as a proof of income—shows your capacity to repay a loan.
If you are planning to go abroad for higher studies, or are about to take up a job outside of India, you’ll need at least three years’ filed income tax returns to show as proof of income. People processing your visa application may request for this financial information to evaluate your financial health, which in return shows that you can support yourself on your own in their country.
How can you file an income tax return in India?
Income Tax filing or efilling is made easy on Cleartax.in. You can e-file your returns within just 7 minutes!
Also note that the deadline for e-filing your income tax returns for the assessment year 2020-2021 is on or before July 31, 2020.
What are the details you need when you’re e filing your income tax returns?
- You’ll need to produce basic information such as PAN, Aadhar card number, and current address.
- Details about all the bank accounts you’ve held in the given financial year. This is a mandatory disclosure you must make for e filing your income tax returns.
- Details about your income from salary, fixed deposits, savings bank account, etc.
- Information on all the deductions you’ve claimed under Section 80.
- You’ll also need to produce tax payment information such as TDS and advance tax payments.