An Income Tax Return (ITR) is a form where taxpayers declare their taxable income, deductions, and tax payments. An income tax return is an important document as it reflects your credit worthiness which is required many a times if you wish to raise loans, travel abroad, get visa, study abroad etc.

ITR filing is mandatory if your total Indian income exceeds Rs 2.50 lakh irrespective of your resident status (resident Indian or an NRI). It’s important to file income tax return as it helps to claim income tax refund in case you have over paid, or pay balance taxes to IT department in case you have underpaid.

For different types of incomes, there are different Income tax return ranging from ITR 1 to ITR 7. Some forms are longer than the others, and they may need additional disclosures such as Balance Sheet and a Profit & Loss Statement information.

Individuals who should file Income Tax Return

·         Person generating income from business and / or profession

·         Salaried Individuals

·         Individuals having income from house property (rental income)

·         Individuals having income from financial investments (Capital gain etc.)

·         Individuals having income from other sources (Interest, Dividend, Foreign investment etc.)

Income Tax Rates for Individuals (AY 2020-2021)

Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)

Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)