What is Income Tax Returns (ITR)? How to file it? Why we should file? Is it necessary? What is the benefit?

What is Income Tax Returns (ITR)?
How to file it?
Why we should file?
Is it necessary?
What is the benefit?

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  • Income Tax Return is a form containing information about a person’s Income and tax details thereon to the Income Tax Department.

  • ITR can be filed online through the website: https://incometaxindiaefiling.gov.in/. Can easily be logged in / registered using PAN number.

  • Indian IT Act obligates citizens to file returns with the Income Tax Department at the end of every financial year.

  • Filing IT is not a benefit, but a bounden duty of a citizen, if the income is more than Rs.2.5 lakhs. You can avoid the penalties due to delay in filing ITR, which are as follows:

Total Income Return filed Fee (Penalty)
Exceeds Rs. 5 Lakh On or before 31st December of Assessment Year but after due date. Rs. 5,000/-
After 31st of December Rs. 10,000/-
Upto Rs. 5 Lakh After due date Rs. 1,000/-
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