Relevant Information About Online Income Tax Return File

In the game of life, your success is measured in numbers, figures in your bank account and annual earnings reflected in your tax return. These numbers have the potential to either open doors, create opportunities for development and growth, or close doors.

Business owners and professionals will find an opportunity to strike more frequently, by filing their annual tax returns. The filing of your income tax return is not only to state your earnings to the Income Tax Department and pay taxes owing, but it allows you to avail of other aids that can be beneficial for you in the short and long-term future.

Online Income Tax Return File for business is essentially the process by which a business must report its income and expenses to the Income Tax Department. All companies operating in India, large and small, must file tax returns annually. Business income tax is more complicated than personal income tax.

A business tax return is nothing but a statement of the business's earned income and expenses. If the business is showing profits, the tax should be paid on the profits. In addition to filing tax returns, a business may also be required to file TDS or pay tax in advance, depending on the need. Tax returns filed by a business will also include details on the assets and liabilities of a business.

In India, it is mandatory to file an income tax return if the income is above the basic exemption limit. Income tax slabs are pre-determined by the government. Delays in filing returns can attract a penalty. According to the Income Tax Act, Income tax is to be paid by Individuals, companies, associations or persons, etc who fall within certain income brackets.

Who Should opt Online Income Tax Return File? 

According to the Income Tax Act, Income tax is to be paid by Individuals, companies, associations and persons, etc who fall within certain income brackets. Mentioned below are the entities and organizations that are required to file the ITRs:

• Every individual, up to the age of 59, whose total income for a financial year exceeds Rs. 2.5 lakhs
• For every Senior citizen between the age of 60 and 80, their tax exemption limit increases to Rs. 3 lakhs
• For every Super Senior Citizen aged 80 and above, their tax exemption limit increases to Rs. 5 lakhs.

Note: It is important to note the income should be calculated before allowing any deduction under Section 80C to 80U and other exemptions under section 10.

• All companies generate income, irrespective of whether they’ve made any profit or not through the year.
• Those who want to claim a refund on the excess tax deducted
• Individuals who have assets that are located outside of India
• Foreign Companies
• NRIs who earn more than Rs. 2.5 lakh in India in a particular financial year

Tax Rates

HUF opting for a Normal Tax Regime

HUF opting for an Alternate Tax Regime

Note:

Rebate under section 87A is available to resident individuals whose total income does not exceed Rs. 5 lakhs during the previous year. 

Rebate is available to the extent of Rs. 12,500 and no rebate will be available if total income exceeds Rs 5 lakhs.

Tax Rates for AOP/BOI

Tax Rates for Company

Tax Rates for Cooperative Society

Tax Rates for Other Entities

Due Date for Filing Income Tax Return

Interest and Penalty for delay in filing returns

Rates of Surcharge

A. Rate of Surcharge in the hands of the Individual, HUF, AOP (Except AOP with all members as a company), BOI or AJP

B. Rate of Surcharge in case of any other Assessee

Note:

Health and Education Cess at the rate of 4% shall be charged on the aggregate of income-tax and surcharge.

ITR RETURNS

Online Income Tax Return File

The income Tax Portal is an independent portal launched by the income tax department. One can go to https://www.incometax.gov.in/iec/foportal if one wants to file ITR electronically/ online.

Steps to file Income Tax Return Online

There are a few simple steps that one can follow to file the Income Tax Return online.

1. Go to https://www.incometax.gov.in/iec/foportal

2. You can Register on the portal using your PAN. Those who are already registered click on ‘Login’

3. Direct to e-file and click on ‘Income Tax Returns

4. From the menu select ‘File Income Tax Return’

5. Choose the ITR form and Assessment Year. 

6. Select ‘Original/ Revised Return’

7. Then click on ‘Prepare and Submit Online

8. Fill in the essential details asked in the ITR form

9. Calculate ‘tax payable’

10. Click on ‘Preview and Submit

11. Complete the verification by sending the Aadhar OTP

12. Enter the OTP sent to the registered mobile number and then submit

Income Tax Audit

The Department of Income Tax provided for a tax audit according to section 44AB of the 1961 Income Tax Act. The purpose of an income tax audit is that an organization’s taxes are examined by an external agency to check that all the information regarding income, expenditure, and deduction has been filed correctly. Income Tax Audit has been made compulsory, and all taxpayers have to get the accounts of their organization or business audited as per the provisions of Section 44AB of the Income Tax Act.

There are many purposes for an income tax audit. It ensures that all businesses keep proper books of accounts and other records of expenses and income. A tax audit also ensures that total income and deduction claims are properly entered when filing returns. This minimizes the risk of fraud.

The tax audit applies to certain groups of companies. If an owner manages a company and the turnover exceeds Rs 1 crore, a tax audit is compulsory. LLPs with a yearly turnover of more than Rs 40 lakh or a capital contribution of Rs 15 lakh must get their accounts audited by a chartered accountant. All kinds of businesses, whether it's limited companies or sole proprietorships, have to go through a tax audit, no matter what the annual turnover is.