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Income Tax Return, is a document that individuals and businesses file with the tax authorities to report their income, expenses, and other financial information. It’s a way for taxpayers to declare their taxable income and calculate the amount of tax they owe or are owed by the government.
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Income Tax Filing Assistance
Receive expert guidance on Income Tax filing, covering areas such as Capital Gains, Freelancing, Export of Services, Foreign Tax Credit, TDS, and various business tax situations.
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Address notices related to Income Tax, TDS, GST, high-value transactions, SFT, non-disclosure, scrutiny, seizure, and summons. We offer guidance, calculations, reviews, and assistance with re-filing, articulating the next steps for your tax scenario.
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Get insights on residential status, DTAA recommendations, tax planning, forecasting, repatriation, missed IT returns, passport seizure, job changes, and the impact of tax residency status—covering matters related to COVID-19 and returning to India.
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GST Returns.
A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
Under GST, a registered dealer has to file GST returns that broadly include:
- Purchases
- Sales
- Output GST (On sales)
- Input tax credit (GST paid on purchases)
To file GST returns or for GST filings, check out the Clear GST software that allows the import of data from various ERP systems such as Tally, Busy, custom Excel, to name a few. There is also the option to use the desktop app for Tally users to directly upload data and file.
Who should file GST Returns?
Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year.
Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly.
There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4).
How many returns are there under GST?
There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04. However, all returns do not apply to all taxpayers. Taxpayers file returns based on the type of taxpayer/type of registration obtained.
Eligible taxpayers, i.e. with a turnover exceeding Rs.5 crore are also required to also file a self-certified reconciliation statement in Form GSTR-9C.
Besides the GST returns that are required to be filed, there are statements of input tax credit available to taxpayers, namely GSTR-2A (dynamic) and GSTR-2B (static). There is also an Invoice Furnishing Facility (IFF) available to small taxpayers who are registered under the QRMP scheme to furnish their Business to Business (B2B) sales for the first two months of the quarter. These small taxpayers will still need to pay taxes on a monthly basis using Form PMT-06.
We have explained the various GST returns, along with applicability and due dates in the section below.
Late Fees for not Filing Return on Time
If GST returns are not filed within the specified time limits, you will be liable to pay interest and a late fee.
Interest is charged at 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be from the next day of filing to the date of payment.
Late fees are charged at Rs.100 per day per Act. Hence, it will be Rs.100 under CGST and Rs.100 under SGST. The total will be Rs.200 per day, subject to a maximum of Rs.5,000. Please note that from the month of/quarter ended June 2021, the maximum amount of late fees has been revised as below.
| Taxpayer category | Late fee capped at |
| Taxpayers whose total amount of central tax payable is Nil | Rs.250^ |
| Taxpayers with an annual aggregate turnover up to Rs.1.5 crore in the previous financial year | Rs.1,000^ |
| Taxpayers with an annual aggregate turnover exceeding Rs.1.5 crore and up to Rs.5 crore in the previous financial year | Rs.2,500^ |
^Taxpayers should note that an equal penalty will apply under SGST. There are no late fees under IGST.
Income Tax Return (ITR)
Income Tax Return, is a document that individuals and businesses file with the tax authorities to report their income, expenses, and other financial information. It’s a way for taxpayers to declare their taxable income and calculate the amount of tax they owe or are owed by the government.
Filing an ITR is a legal requirement in many countries, and the process helps ensure transparency and accountability in financial matters. The specifics of ITR services can vary by country, but generally, it involves providing accurate financial details to the tax authorities either manually or through online platforms.
ADVANTAGES OF ITR FILING
RESPONSIBILITY OF EVERY PERSON
Filing ITR is a responsibility for many; exemptions is applicable for some catagories but others must file and pay taxes on time.
SMOOTH PROCESSING OF APPLICATIONs
Timely ITR helps obtain loans/visas, serves as income proof; absence may cause difficulties in such applications.
NO PENALTIES
Non-filing of ITR attracts penalties i.e. minimum Rs. 5,000, plus interest under section 234A, resulting in unnecessary expenses.
CARRY FORWARD OF LOSSES
Filing ITR allows carrying forward capital losses for future adjustments against capital gains, thereby maximizing tax benefits.
CREDIBILITY
Timely ITR submission demonstrates responsible nature, strong financial record, establishes credibility, and positive reputation.
CLAIMING OF REFUND
Timely ITR filing is required to claim refund for excess taxes paid through TDS/advance tax, ensuring timely receipt of overpaid taxes
Key points
An income tax (IT) return is the tax form or forms used to file income tax with the Income Tax Department. The tax return is usually in a predefined worksheet format where the income figures used to calculate the tax liability are written into the documents themselves. Tax returns allow taxpayers to compute their tax liability and remit payments or request refunds. In most countries, tax returns must be filed every year for an individual or business that received income during the year, whether through wages, interest, dividends, capital gains or other profits.
A direct tax is a tax you pay on your income directly to the government. Indirect tax is a tax that restaurants, theatres and e-commerce websites charge you on for goods or a service. This tax is, in turn, passed down to the government. Indirect taxes take many forms such as service tax on restaurant bills and movie tickets, value-added tax or VAT on goods such as clothes and electronics.
Goods and services tax, which has recently been introduced is a unified tax that has replaced all the indirect taxes that business owners have to deal with.
Any Individual having the following types of income can opt for FINACT Professional Services ‘s services:
- Income from Salary.
- Income from House Property.
- income from Business or Profession.
- Income from Sale of Investments (Shares, Mutual Fund units, Bonds) or Property
- Income by way of Interest, Dividend, Gifts, Family Pension, Agricultural Income
- Brought Forward Losses.
- Clubbing of Income.
and much more.
- FINACT Professional Services offers you a unique experience when filing your tax return. Find out how:
- You do not need to know Income Tax Laws.
- The tax computation is done absolutely FREE. You can also view it for free. You pay only when ready to file.
- FINACT Professional Services is a Registered e-Return Intermediary by the Income Tax Department. So we can file your return with the IT Department on your behalf.
- FINACT Professional Services uses 128-bit encryption Secure Sockets Layer (SSL) technology, used by banks around the world. Our servers are the safest home for your data!
- No advertisements or pop-ups on the FINACT Professional Services website.
- You can prepare and file your return for various types of Income. FINACT Professional Services does not place a restriction on income types in its plan.
Failing to submit your tax return within the deadline can lead to a number of unfavorable circumstances:
If you fail to file your ITR within the due date, you may have to pay a late filing fee of up to Rs. 10,000 depending on the delay in filing.
You will not be able to offset any losses other than those arising from property loss against future gains. This can lead to an increase in your overall tax liability.
You will also be charged interest under Section 234A at a rate of 1% per month or part of a month on any outstanding tax due until payment is made. It’s important to remember that you can’t file your ITR unless you’ve paid your taxes in full, and the longer you delay, the more interest you’ll accrue.
If you’re entitled to receive a refund for excess taxes paid, filing your returns before the deadline will ensure that you receive your refund sooner. However, if you miss the income tax filing deadline, your refund may be delayed, causing further inconvenience. You will not receive your refund untill you file the ITR.
Legal consequences :
The income tax officer may start prosecution proceedings against you if you intentionally refuse to file a return, despite receiving reminders. If convicted, you could be imprisoned for up to two years, and fined up to 50% of your due tax. The period of prosecution could even extend to seven years if you owe a significant sum to the department.
Therefore, in a nutshell, timely filing of your ITR not only ensures that you meet your legal obligations, but it also safeguards you against unwanted legal and financial consequences.
Salaried individual
If your gross income exceeds the exemption limit before deductions under Sections 80C to 80U, then you must file an ITR return.Form 16 is a certificate that contains details of the salary earned by an employee and the TDS duducted by the employer.
If the salary income exceeds the basic excemption limit , The employer is required to deduct TDS on salary at the time of making the payment and deposit the same with the government within the due date.
The employee receives this form annually from their company to include with their tax return.
Form 16 has two parts :
Part A contains the names, addresses, PAN numbers, TAN numbers of both employer and employee, tax deducted and deposited.
Part B specifies the employee’s allowances, perquisites, other benefits and deductions allowed under Income Tax Act.
Non individual
Every firm, whether it’s a private limited, LLP, or partnership, is required to file IT returns, regardless of whether it made a profit or loss.Director/Partner
Individuals who are Directors in a Private Limited Company or a Partner in a Limited Liability Partnership firm are also required to file IT returns.Having Income from other sources
you earn dividends from mutual funds, bonds, equities, fixed deposits, interest, or other sources, then you must file an IT return.Income from charity or voluntary contributions
you receive income through charity or religious trusts, as well as income from voluntary contributions, then you are required to file IT returns.Foreign income
NRIs and tech professionals on onsite deputation, as well as anyone with foreign income or assets, are required to file IT returns.Other situations where it is mandatory to file ITR
If you have deposited an amount exceeding Rs.1 crore in one or more current accounts during the financial yearIf you are seeking tax refunds, whether you are an individual or a business, then you must file IT returns.
If you have paid an electricity bill exceeding Rs. 1 crore in a single bill or on an aggregate basis during the financial year.
If you have spent Rs. 12 lakh or more on foreign country travel.
If you hold any asset outside India or have signing authority in any foreign account.
If your total sales or turnover in a business is Rs 60 lakhs or more during the financial year.
It is always advisable to file ITR even if you are not required to do so, as it helps in building a good credit history and may be required as proof of income in various situations like availing loans, obtaining visas, etc.