Income Tax Filling – B PERFECT SERVICES

Income tax return (ITR) is a statement of income and tax thereon, which is to be furnished by a taxpayer to the Income tax Department in prescribed form. Every year different forms of returns of income are prescribed by the Income-tax Department for different taxpayers having different income from different sources. Income Tax Return is the
form in which assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses. We have two types of taxes in India – Direct Tax and Indirect tax.

What is Form 16?

ITR Forms for Individuals	ITR Forms for Non-Individuals
ITR – 1 (Sahaj) – For individuals earning income from salaries, one house property, interest income, agriculture, other sources, etc.	ITR – 5 – Entities other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
ITR – 2 – For Individuals and HUFs having income other than from profits and gains of business or profession. It may be from capital gain, lottery or foreign assets, etc.	ITR – 6 – All companies except those that claim tax exemption as per Section 11.
ITR – 3 – For individuals and HUF with income from profits of a business or profession.	ITR – 7 – Persons incl. companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
ITR – 4 (Sugam) – For Individuals, HUFs and Firms (other than LLP) having presumptive business income tax returns. This is computed under sections 44AD, 44ADA or 44AE.

Form 16 can be termed as Salary TDS (Tax Deducted at Source) Certificate that an employer issue to you for the TDS deducted. Form 16 is an Income tax form, used by the companies to provide their salaried employee’s information on the tax deducted.

As soon as the income from your salary for the financial year exceeds the basic exemption limit, the employer is required to deduct TDS. The deducted amount is to be deposited to the Government.

After deducting TDS from the salary, the employer is required to give a certificate to the employee consisting of the details. This certificate is known as Form 16.

It consists of two parts i.e. Part A and Part B. Part A consists of details about the employer & employee, name and address, PAN and TAN details, TDS deducted & deposited, etc. And Part B consists of details related to other income, deductions allowed, etc.

Benefits for Income Tax Filing

Processing of Loans & Visa
Claiming Refund
Carry-forward Losses
Establishing Income in Compensation Cases
Self-Employed Individual Filing for Tenders
Being a Responsible Citizen

FAQS OR Frequently Asked Questions

1.How to pay income tax to the government?

You can pay by either cash/cheque in any designated bank branch or online on the NSDL website. Payment is to be made in Challan-280 in both cases. The Challan must be filed accurately for further processing.

2.What is Financial Year, Previous Year, and Assessment Year?

Previous Year is the same as the Financial Year in which the income is earned. Tax is payable on the income earned during this Previous Year. And this tax is payable in Assessment Year, which is the year next to the Financial or Previous Year. For example, for the Income earned in Financial Year (Previous Year) April 1, 2019, to March 31, 2020, the liability to pay tax will fall in 2020-2021, known as the Assessment Year.

3.When are income tax returns to be filed?

The due date for filing all ITRs is 31st July for Individuals and 30th September for Businesses. After this deadline, tax returns would be as a “Belated Return” any time before 31st March 2020. With penalty.

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