ITR Filing

What is ITR Filing?

ITR stands for Income Tax Return. It's a prescribed form through which the particulars of income earned by a person in a fiscal time and levies paid on similar income are communicated to the Income Tax Department.

Indian Income Tax Return (ITR) filing is a crucial annual obligation for taxpayers. The process involves reporting one's income, deductions, and tax liabilities to the Income Tax Department. Individuals, businesses, and entities meeting specific income thresholds are required to file their returns. The fiscal year runs from April 1 to March 31, and the filing deadline typically falls on July 31 for most taxpayers.
The IT department has informed 7 different shapes i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Each citizen should file his ITR on time before the given due date.The appropriateness of ITR shapes shifts depending on the sources of income of the citizen, the sum of the wage earned and the category of the citizen like people, HUF, company, etc.

Income can be of various forms such as :

• Income from salary
• Profits and gains from business and profession
• Income from house property
• Income from capital gains
• Income from other sources such as dividend, interest on deposits, royalty income, winning on lottery, etc.