Guidelines to File for Income Tax Returns

As the months of May arrive, the time to file for Income Tax Returns follows suit. Salaried individuals will have to collect Form 16 from their employers and Form 16A to file for tax deducted on other earnings apart from salary. Likewise, individuals who are self-employed with income through business also need to accommodate and finalise their yearly accounts. Tax filing experts suggest being prepared for filing for returns beforehand, to simplify things and not wait until the last minute. According to Section 139(1) of the Income Tax Act, 1961 of India, A ‘mandatory return’ is required to be filed by the following: Any company whether it is domestic, foreign, public or private. Any firm inclusive of unlimited liability partnership firm and LLP. Any individual whose total income within a financial year exceeds the basic exemption limit. Voluntary Return is referred to Income Tax Returns filed by an individual even when he / she is not required to do so. Voluntary Return is also considered as a valid return. These days the government simplified filing for Tax Returns for the citizens by introducing E-Filing Policy. E-filing is defined as filling for Income Tax Returns electronically. Through e-filing one have the option of either seeking help from a professional or registering online for the tax return from the comfort of one’s home. Why is filing for Income Tax Returns mandatory? Filing for Income Tax Returns is an obligation for everyone who earns a Gross Total Income (prior to any deductions under section 80C to 80U) exceeding Rupees 2,50,000 during the FY 2018-19.