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How do I know my Income tax returns in India?

Income Tax Return

An essential financial duty for both people and corporations is filing an income tax return. In addition to guaranteeing adherence to legal mandates, it permits taxpayers to obtain tax advantages, submit refund requests, and preserve financial transparency. The significance, varieties, filing procedures, advantages, fines for non-compliance, and ways that expert accounting services like Meru Accounting may help you manage the intricacies of income tax returns are all covered in this extensive book.

An Income Tax Return: What Is It?

A paper filed with the tax authorities that details income received during a fiscal year is called an income tax return. It contains information about tax obligations, exemptions, deductions, and income from many sources. For tax rules to be followed and fines to be avoided, an appropriate income tax return must be filed.

Why Is It Important to File an Income Tax Return?

Why Is It Important to File an Income Tax Return?
Why Is It Important to File an Income Tax Return?

1. Adherence to the law

  • Individuals and companies whose income exceeds the tax rules’ exempt threshold are required to file an income tax return. Penalties and legal repercussions may follow noncompliance.

2. Making a Refund Claim

  • By submitting their income tax return, taxpayers who paid more tax than they were required to during the fiscal year can request a refund. This guarantees they don’t incur needless losses.

3. Making Use of Tax Advantages

  • By filing an income tax return, taxpayers can lower their overall tax burden by claiming deductions under several sections, including Section 80C for investments in tax-saving instruments.

4. Evidence of Income

  • As evidence of income, an income tax return is frequently needed for things like applying for loans, visas, or insurance policies.

For whom is an income tax return required?

Age, taxpayer type, and income level are some of the variables that affect the need to file an income tax return. The following are some broad rules:

Individuals: 

  • Residents under 60 years of age who earn more than ₹2,50,000.
  • Elderly people (60–80 years old) earning more than ₹3,00,000.
  • Super senior citizens (those over 80) who earn more than ₹5,00,000.

Professionals and enterprises: All self-employed professionals and enterprises with taxable income are required to submit an income tax return.

Other Entities: Regardless of their income, businesses, trusts, and firms must file income tax filings.

Income Tax Return Types

To file income tax returns, the Income Tax Department offers a number of forms. The type of taxpayer and the type of income determine which form is best. These are the most typical types:

1. ITR-1 (Sahaj)

  • For people who make money from a salary, pension, a single residence, or other sources (not including lottery or gaming).

2. The ITR-2

  • For Hindu Undivided Families (HUFs) and individuals who earn money from foreign assets, capital gains, or multiple home properties.

3. The ITR-3

  • for people and HUFs who make money via a profession or private business.

4. ITR-4 (Sugam)

  • For individuals, HUFs, and businesses using the presumptive taxation scheme, there is ITR-4 (Sugam).

5. ITRs 5 and 6 and 7

  • For organizations, trusts, and businesses with particular needs.

How to Check Your Income Tax Return (ITR) Status in India?

Filing an Income Tax Return (ITR) is an essential financial responsibility for individuals and businesses in India. After successfully filing your ITR, it is important to check its status to ensure that it has been processed by the Income Tax Department. Here’s a step-by-step guide on how to check your ITR status in India.

1. Ways to Check Your ITR Status

There are two main ways to track your ITR status:

  • Without Logging In – Using the Income Tax Department’s e-filing portal.
  • By Logging In – Using your e-filing account for detailed tracking.

A. Checking ITR Status Without Logging In

If you do not wish to log in, follow these steps:

  1. Visit the Income Tax e-Filing Portal.
  2. Navigate to the “Income Tax Return (ITR) Status” section.
  3. Enter Your Details: Provide your PAN (Permanent Account Number), Acknowledgment Number, and a security code.
  4. View Your ITR Status: The system will display the status of your filed ITR.

B. Checking ITR Status by Logging In

For a more detailed status update, follow these steps:

  1. Log in to the e-Filing Portal.
  2. Enter Your Credentials: Use your PAN, Aadhaar, or User ID and password.
  3. Go to the “View Filed Returns” Section: Under the “e-File” menu, click on “Income Tax Returns” → “View Filed Returns.”
  4. Check the Status: The system will display the status of your ITR, such as:
    • Return Uploaded – Successfully submitted but not yet verified.
    • Verified – The return has been verified but is pending processing.
    • Processed – The return has been successfully processed.

2. Understanding Your ITR Status

Once filed, your return may show different statuses, including:

  • Return Submitted & Pending Verification – The ITR has been filed but not verified. You need to complete e-verification using Aadhaar OTP, net banking, or by sending a signed ITR-V to the designated address.
  • Return Verified & Under Processing – The return has been received and verified but is still under review.
  • ITR Processed – The return has been processed successfully. If applicable, a tax refund will be initiated.
  • Defective Return – There are discrepancies in the return, requiring corrections.
  • ITR Rejected – If the return is incomplete or incorrect, it may be rejected, and you need to refile it.

3. Checking ITR Refund Status

If you are expecting a tax refund, you can check the status through:

  • Income Tax e-Filing Portal: Log in and check under the “Refund Status” section.
  • Tax Information Network: Use your PAN and assessment year to track the refund progress.

Advantages of Timely Income Tax Return Filing

  1. Avoiding Penalties: Section 234F imposes penalties for late submission, which can reach ₹10,000.
  2. Carrying Forward Losses: Losses can be carried forward and deducted from future income by taxpayers who file their returns on time.
  3. Quicker Refund Processing: Refunds for early filers are frequently processed more quickly.
  4. Better Creditworthiness: Filed returns improve creditworthiness for loans by acting as evidence of income.

Penalties for Failure to Comply

There are several consequences for breaking income tax regulations, including:

  • Section 234F Penalty for Late Filing: Up to ₹10,000.
  • Interest on Overdue Taxes: Sections 234A, 234B, and 234C interest.
  • Prosecution: In extreme circumstances, prosecution for tax evasion or intentional default.

How Meru Accounting Can Assist in Filing Income Tax Returns

With a focus on offering complete accounting and tax services, Meru Accounting guarantees quick and accurate income tax return filing. They can help you in the following ways:

  1. Proficiency in Tax Law

The staff of tax experts at Meru Accounting guarantees adherence to all legal standards and keeps abreast of the most recent tax legislation.

  1. Streamlined Procedure

By arranging paperwork, figuring out liabilities, and filing returns on your behalf, they expedite the income tax return filing procedure.

  1. Tailored Approaches

Regardless of your size—individual, small, or large—Meru Accounting customizes its services to fit your unique requirements.

  1. Assistance with Audits

They offer complete support, guaranteeing peace of mind, in the event of tax authorities’ examination or audit.

  1. Services Driven by Technology

Meru Accounting prepares and files tax returns accurately and efficiently by using innovative technologies.

The Services Meru Accounting Offers

  1. Income Tax Return Filing: Both individuals’ and businesses’ income tax returns must be filed accurately and on time.
  2. Tax Planning and Advisory: Professional guidance on investments that reduce taxes and methods to reduce tax obligations.
  3. GST Compliance: Support for GST filing, registration, and adherence.
  4. Accounting and bookkeeping: Full-service accounting and bookkeeping to maintain current financial records.
  5. Payroll Management: Effective payroll administration that guarantees adherence to labor and tax regulations.
  6. Audit and Assurance: Assistance with compliance, internal, and statutory audits.
  7. International Taxation: Knowledge of international taxation and compliance for multinational corporations.

Conclusion

In addition to being required by law, filing an income tax return is a prudent financial practice that helps both individuals and companies. Taxpayers may guarantee compliance, obtain refunds, and feel at ease by being aware of the procedure, meeting deadlines, and obtaining expert help. With its experience and customer-focused methodology, Meru Accounting is prepared to help you navigate the intricacies of submitting an income tax return while guaranteeing accuracy, efficiency, and compliance.

Meru Accounting is your reliable partner in attaining financial clarity and compliance, regardless of whether you are an individual wishing to file a straightforward return or a business handling intricate tax needs. Therefore, take action now to safeguard your financial future by submitting your income tax return with the assistance of knowledgeable experts.