PERSONAL TAX FILINGS
Every conscientious Indian citizen is urged to fulfill their obligation to the government by filing their income tax returns. Thanks to modern technology, the process of filing taxes online has become streamlined and efficient, offering convenience and accuracy without any temporal restrictions.
Nevertheless, navigating the income tax filing process in India via the official website necessitates the completion of specific ITR forms tailored to individual circumstances. Distinguishing between various forms such as those designated for salaried individuals or general taxpayers, ranging from ITR 1 to ITR 7, is crucial.
Failure to accurately complete any section of the form or committing errors may result in the untimely submission of your income tax returns. In such instances, seeking professional guidance becomes imperative.
Prayog Enterprise offers a streamlined and efficient solution for handling Personal Income Tax filings in India. Supported by a committed team of experts, they deliver tailored assistance throughout the tax filing journey, simplifying the process and alleviating any associated stress, ensuring a smooth fulfillment of your tax responsibilities.
Income tax Filing and its types
ITR-1 : Individuals with an annual income of less than Rs.50 Lakhs from salary or pension and owning only one house property can use ITR-1.
ITR-2 : NRIs, company directors, shareholders of private companies, or individuals with capital gains, foreign income, more than one house property, and income exceeding Rs.50 lakhs must file ITR-2.
ITR-3 : Professionals or proprietors of businesses in India are required to file ITR-3.
ITR-4 : Taxpayers under the presumptive taxation scheme with business income below Rs.2 crores or professional income under Rs.50 lakhs are eligible for ITR-4.
ITR-5 : Partnership firms, LLPs, associations, and other entities must file ITR-5 to report their income and tax computation.
ITR-6 : Indian registered companies are obligated to file ITR-6.
ITR-7 : Entities seeking exemption as charitable/religious trusts, political parties, scientific research institutions, colleges, or universities must file ITR-7.
PERSONAL TAX FILINGS IN INDIA
In India, personal tax return filing involves individuals disclosing their yearly income particulars, along with details of deductions and taxes remitted, to the Income Tax Department. This is accomplished through designated forms known as Income Tax Returns (ITRs), tailored to suit the individual's income origins, encompassing salary, business proceeds, capital gains, and other revenue streams. The act of filing a tax return serves to declare one's earnings and settle the applicable taxes owed to the government. It's compulsory for individuals surpassing the stipulated basic exemption threshold for the fiscal year. The process of income tax filing can be conveniently conducted online via the e-filing portal.
Documents Necessary for Income Tax Return Filing
For all taxpayers:
Aadhaar Card
PAN Card
Bank Account Details
Form 16 (providing salary and TDS details)
Form 26AS (offering tax credit statement)
Receipts for tax exemptions or deductions (if applicable)
Bank interest statements
Capital gains statements (for asset sales)
Documents pertaining to foreign assets and income (if applicable)
When filing income tax returns in India, ITR-1 and ITR-2 forms have been crafted to be annexure-free, eliminating the need for attaching any supporting documents upon submission. Nevertheless, possessing the appropriate documents is imperative for ensuring a seamless and accurate filing process.
Additional documents required based on employment status:
For Employees:
PAN Card
Form 16 issued by the employer
Salary slips (critical for e-filing of ITR)
For Business Owners:
Trading report
Business account particulars
Profit and loss statement (if applicable)
Supplementary documents that can be furnished:
Investment proofs
Documents related to asset purchases/sales
TDS certificates issued by banks
Statements of interest income
Receipts for donations, mutual funds, and other investment instruments.
Due Date and Late filing fee for the Income Tax Return Filing
The standard deadline for individuals in India filing personal tax returns using ITR-1 and ITR-2, without requiring a tax audit, is typically the 31st of July of the assessment year following the relevant financial year.
Between July 31, 2024, and December 31, 2024, an income tax filing tardiness will incur a late fee of Rs 5,000. However, small taxpayers earning less than Rs 5 lakh in total income will face a reduced penalty of Rs 1,000 for late filing within this timeframe.
Advantages of E-Filing Income Tax Returns
Reduce the Risk of Tax Notices: E-filing minimizes the likelihood of errors on your tax return, decreasing the chances of receiving notices from tax authorities.
Enhance Financial Record-Keeping: E-filing encourages meticulous record-keeping, simplifying the management of your finances.
Utilize Losses Effectively: E-filing enables you to carry forward past losses, allowing for potential tax reductions in subsequent years.
Expedite Tax Refunds: E-filing often expedites the processing of tax refunds, providing a timely financial boost.
Improve Credit Rating: Maintaining a clean tax record via e-filing can enhance your credit score, facilitating access to loans or credit cards.
Streamline Business Finances: For businesses, e-filing streamlines the tax process, easing compliance with tax obligations.
Enhance Financial Planning: E-filing prompts an annual assessment of your financial status, aiding in the formulation of better financial strategies for the future.
Start Personal Tax Filings
Frequently asked questions
Who Needs to Submit a Personal Tax Return?
Individuals obligated to file personal tax returns include those whose income surpasses the tax-exempt threshold, comprising:
Salaried Individuals
Individuals and Hindu Undivided Families (HUFs) with additional income sources like investments, property, or capital gains, elevating their total income beyond the tax-free threshold.
Which ITR Forms Are Employed for Personal Tax Filing?
Individuals utilize several ITR forms for personal tax filing, such as ITR-1 and ITR-2, tailored to accommodate diverse income sources and complexities.
How much are the charges for ITR filing?
The fees for ITR filing usually fluctuate depending on factors such as income level, filing status, and the complexity of the return.
Why Opt for Prayog Enterprise for ITR Filing?
Prayog Enterprise provides hassle-free, expert support for personal tax return filing, delivering a seamless and precise experience tailored to each individual's financial circumstances. We handle all paperwork, making your interaction with the government as effortless as possible. Additionally, we offer clear guidance on the process, setting realistic expectations, and our team of seasoned business advisors is readily available to address any inquiries. Our aim is to preemptively address any concerns, ensuring a smooth and worry-free experience for you.
What is the minimum salary to ITR Filing Online?
According to the Income Tax Act, individuals in India are required to file an income tax return if their total income surpasses ₹2.5 lakh in the respective financial year.