Income Tax Return is a form where individual (assesses) file their information about his income and Tax and submit the form to Income tax Department . These form help the individual to calculate his/her tax liability, or shedule tax payment or request refund for the overpayment of taxes from the Income Tax Department
The Income Tax Act 1961 and 1962 bounds the Indians Citizen to file their income tax return after the Financial Year (F.Y.) and before the endig of the Assessment Year(A.Y.)
For filling of Income Tax Return in Respect of preceding Financial Year (i.e. ongoing Assessessment Year ) following form have been prescribed by Income tax Department
Every individual taxpayer is mandatorily required to file the Income tax Return whose gross taxable income of all heads exceeds the basic exemption( i.e. 2,50,000) limit before claiming the exemption's . And there are several benefits of filling the Income tax return
The Income Tax Refund reflect the income and tax liability of the assessee which act as a financial certificate of the assessee and creates the finacial credibility of the assessee which in turn is very helpul for processing of loan from the banks . That is the reason all major banks ask the copy of the income tax refund
If the Tax laid upon you is less then the Tax paid by you then individual can claim for the Refund from the Income Tax Department (ITC) for that they have to file return without which you have to forgo the refund . Taxpayer can also have some exemption under diffrent section of Income Tax Act 1961 while filling the return .
Some taxpayer also primarily investing through fixed deposit . On such investment Tax is deducted at Source (TDS) at 10 per cent . If the Individual total taxable income is less then the 2,50,000 then he can claim for full refund .
Since ITR Reciepts shows that the individual have some Source of income in india thus strenghtning your case as individual will not leave the Country for good but will return. So if you wish to travel overseas then you must have ITR copy Since foreign consulates askk for the ITR receipt of the last couple of years at the time of the visa interview or maybe three years receipt. So it is important to file your return
Having a high live cover has become trendy in todays era . However these cover are only availabel against your ITR documents to verify the anual income of individual Insurance company always ask for the ITR copy if you tend to buy policy with sum insured of 50,00,000 or more . These policy will only be provided when your ITR meets certain annual income of yours and others factor also
Form 16 Comes under section 203 of Inocome Tax Act 1961 which states that every person being an employer should furnish the certificate to the person on whose income the tax is collected. Which specifies the income of the taxy payer and also states that the tax is paid to the central goverment i.e. Income Tax Departement
Part A reflects as the proof of the tax deducted by the employer and contains all the Tds information it is also know as Form 16A.Part A also reflects the TAN (Tax Deduction Account Number) of the employer & PAN (Permanent Account Number) details of bothe the employer and employee . The name and address of both the employee and employer is mentioned
Part A reflect the following details
Part B is an important part of your Form 16 since it has a cosolidated detail of salary paid to you during the year .It also reflects your detailed salary components , taxability of the same and the total amount of tax payable by you for the year against which TDS had been deducted. The breakup of your Salary as well as detail of deduction claimed by you under diffrent heads and section
Part A reflect the following details