Income Tax Services

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Income Tax Services

Who is required to file income tax return?
Reference-Sec 139 of Income Tax Act Every person being a company / a firm / any individual person or a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the exempted limit, shall on or before the due date, furnish a return of his income.
Here, exempted income means in case of individual person it is Rs. 250000 for Financial Year 2019-20 (01st April 2019 to 31st March 2020) If your net taxable income is below Rs.250000 then you need not file Income Tax Return.

Income Tax Services Categories

Individual Income Tax Returns

  • Individual Income Tax Returns Details

Business Income Tax Returns

  • Business Income Tax Returns Details

Mandatory requirement to file Income Tax Return
Following persons are required to file Income Tax Return every year irrespective of income:
a. Private Limited Company
b. Public Limited Company
c. Partnership Firm
d. Limited Liability Partnership
e. Individual having gross income more than basic exemption limit (Rs 250000 for FY 2019-20)
f. If you want to claim income tax refund (if applicable)
g. You want to carry forward a loss under a head of income (Ex-Loss on sale of equity shares)
h. Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs)
i. If you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs)
j. You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
k. If you are a foreign company taking treaty benefit on a transaction in India
l. If you want to apply for a loan / a visa / credit card etc Income Tax Return is mandatory.

Applicable from 01 April 2020
Any person who satisfies following conditions need to file Income Tax Return mandatorily:
(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or
(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or
(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
(iv) fulfils such other conditions as may be prescribed.
Note - For detailed list of persons who need to file Income Tax Return, please refer sec 139 of Income Tax Act.

Benefits of filing Income Tax Return
a. Avoid penalties for non filing of ITR Penalties from Rs. 1000 to Rs. 10000 can be avoided if ITR is filed within due date. Income Tax Act levies interest on late filing of ITR and late payment of Income Tax. This can be saved if you comply with all due dates.
b.ITR is proof of income Income Tax Return is proof of your income for previous year. ITR and Financial Statements show us all sources of income, profit / loss from business or profession, capital gain/loss, adjustments of income, tax saving investment, balance sheet and profit and loss account. This shows your financial stability and capability.
c. ITR is very important document in Loan processing Almost all financial institutes ask for Income tax return for last 3 years as supporting to your income. So you need to plan for filing of income tax returns much before you apply for any kind of loan like home loan, car loan, business loan etc.
d. Visa processing Embassies of developed countries like the United States, United Kingdom, Canada, and Australia ask for ITR receipts of the past years to process your visa application. They are very particular about your tax compliance and hence, you are asked to furnish past ITR receipts. This helps them assess your income and ensure that you are able to take care of the expenses on your trip.
e. Carry forward losses and set off If you incur losses during last financial year and want to set off it against profit of current/future financial years then ITR filing becomes mandatory. This is very useful for tax planning. For carry forward of losses you should file Income Tax Return within due date.
f. Claim income tax refund In order to claim refund the Income Tax Department, you will have to file an Income Tax Return. Refund is eligible normally when Tax Deducted At Source is more than actual tax liability or if you have paid self assessment tax in excess. Without filing of income tax return Income Tax refund can not be claimed.
g. Certificate of appreciation Income Tax Department issues Certificate of appreciation if ITR is filed electronically within due date and all taxes are paid within due dates. This certificate can be displayed at your business. This shows your contribution as a taxpayer. This certificate is issued to those who have paid tax more than Rs. 1 Lakh and complied with all due dates.