INCOME TAX RETURN FILING

UNDERSTANDING THE CONCEPT OF INCOME TAX IN INDIA

Income tax is levied by the Central Government on the income that is earned during a financial year by individuals and businesses. The taxes are considered to be a source of revenue for the government. The revenue that is collected from the source of tax is then utilised on developing infrastructure, providing better healthcare, education, subsidies to the farmers or people employed in the agriculture sector, and also for the government welfare schemes.

income tax return filing in bangalore

INCOME TAX RETURN FILING IN INDIA THROUGH MIBOOK

Every individual liable to pay income tax has to file Income Tax Return (ITR) to the Income Tax Department of India.Every individual liable to pay income tax has to file Income Tax Return (ITR) to the Income Tax Department of India.
There can be different types of income in India for which ITR can be filed such as Income from capital gains, Income from salary, profits and gains from business and profession, Income from house property, Income from other sources such as dividends, interest from deposits, royalty income, winning on lottery, etc.

ITR filing in India requires you to file information about the income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.
The applicability of any ITR form depends on the nature and amount of income and type of taxpayer. The Income Tax Department has illustrated 7 types of ITR forms - ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
The procedure for income tax return filing in Bangalore can be complicated and hectic for working professionals or businessmen so Mibook has taken an initiative to help all such people with our filing services.

WHO HAS TO FILE ITR?

Every individual earning more than Rs 2.5 lakhs per annum has to file an income tax return in India. Every company, LLP, or Partnership Firm irrespective of its income has to file an income tax return.

WHY FILE AN INCOME TAX RETURN WITH MIBOOK?

Mibook offers correct and timely ITR filing in Bangalore so as to avoid harassment by tax authorities and to avoid heavy penalties. Also, a strong income tax helps to increase your credibility with banks and investors.

FILE AN INCOME-TAX RETURN IN BANGALORE THROUGH MIBOOK?

1. All you have to do is fill out a simple form on the website and give us some essential information like details of your Form 16, investment details, company balance sheet, the state you carry out your operations, etc.
2. Our expert team at Mibook will help optimise your tax.
3. Thereon, file your income tax return. Upon successful completion of the process, we will mail you the Verification acknowledgement form to your registered email address.

BENEFITS OF ITR FILING IN BANGALORE

Processing of Loans & Visa:

If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of the loan would depend on your income. This can be established through income tax return filing in Bangalore. ITR will help your lender to assess your repayment capacity.

Claiming Refund:

There could be some TDS cuts on some investments. And you will have to file the ITR to claim a refund of the same. Or you may have paid excess tax on your income. To get a refund for the same, you must file ITR. Many salaried individuals don’t file Income Tax Return as they think that the tax on their income has already been deducted and they have Form 16. But your employer may have paid more tax on your behalf. Not taking into consideration your actual house rent, children’s school fees, tax-saving investments, or insurance. So, ITR filing in Bangalore will enable you to get a refund from the Income-tax department.

Carry-forward Losses:

As per Income tax rules, losses are allowed to be carried forward and set off against capital gains. But this applies only to those individuals who file ITR in the relevant assessment year. If you have incurred losses for a year and you have earned below the exemption limit. You must file your Income Tax Returns in Bangalore to be able to carry forward the losses you have incurred. And it brings balance against future gains and income.

Establishing Income in Compensation Cases:

Although the Motor Vehicles Act does not make it compulsory to present the ITR while calculating the compensation in case of accidental death or disability, the procedures approved by the Delhi High Court outline the need for ITR for self-employed persons.

Self-Employed Individual Filing for Tenders:

Not all Businessmen, consultants, and partners get Form 16. For self-employed individuals, ITR receipts become an important document. Income tax return filing in Bangalore is the only proof of income and tax payment for them, in all sorts of financial transactions. And if they want to take up some contract or tender, they may be asked to show their tax return receipts for the previous 3 to 5 years.

DOCUMENTS REQUIRED BY MIBOOK FOR ITR FILING IN BANGALORE

PAN Card: PAN Card of the taxpayer

Entities PAN Card: In the case of a company or firm, the PAN card of all directors or partners is required

Aadhar Card: In the case of a company or firm, the Aadhar card of all directors or partners is required.

Cancelled Cheque: Cancelled cheque of the taxpayer’s bank account is required

Bank Account Statement: The statement for the concerned Financial Year is required to assess other incomes

Financial Statements: For business entities, except proprietorship, financial statements are required

Investment/ expenses u/s 80: Details about the investments made or expenditure u/s 80 must be provided

Form 16: The salaried person should provide the TDS Certificate, known as Form 16

itr filing in bangalore

PROCESS FOR ITR FILING IN BANGALORE

Day 1 - 2

1. Collection
2. Discussion and collection of basic Information
3. Consultancy for appropriate ITR form
4. Collection of required documents

Day 2

1. Execution
2. Computation of taxable Income Tax

Day 3

1. Submission and Acknowledgement
2. Online filing of income tax return
3. Sharing ITR Acknowledgment

Comparision

itr filing in bangalore

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Frequently Asked Questions

Any person who is earning more than Rs. 2.5 lakhs per annum is eligible for filing an Income tax return (ITR) in Bangalore.
Any Company, LLP and Partnership firm are also eligible for filing ITR irrespective of their annual income.
The ITR-1 form has to be filed by the individual who is earning up to Rs 50 lakh from the below sources:
     - Income as Salary/Pension
     - Income from house property
     - Income from other sources that excludes income from gambling and betting the racehorses.

Generally, the charges for ITR filing varies depending on the mode for filing. The online filing charges are lower when compared to offline filing because the whole procedure in online mode is menu-driven and you only have to file returns by using the ready-made templates of tax filer software.
The charges for ITR filing varies from Rs 500 to Rs 1000 and this amount can go higher if expert services are acquired.
If you want to opt for the cheapest method to file ITR then the online mode will be the best option for you. For this, you just need to visit the official Income tax website and sign up using your PAN card as user name and password.

A Capital asset includes all those properties of any kind possessed by an individual. The property connected to business or profession or not connected to business or profession all comes under the category of Capital asset.
All kinds of property mean movable or immovable, tangible and intangible, fixed or circulating, such as land, building, plant & machinery, vehicle, furniture, jewellery, route permits, goodwill, tenancy rights, patents, trademarks, shares, debentures, securities, units, mutual funds, zero-coupon bonds etc.
From the perspective of a company or business, a capital asset includes all assets that have been a part of the company’s operations for more than a year and are not available for sale. It is also considered as a production cost.

There are many changes that have been introduced in the process of ITR filing in Bangalore from 2021 to 2022. Some of the major changes are highlighted below:
- Addition of JSON Utility
In order to enable taxpayers to file Income tax returns smoothly through the offline process, the Income-tax department has introduced the JSON utility. In the coming years, this change is expected to increase return filing convenience in every way.
- Section 194N of the IT Act provides for deduction of TDS in case of cash withdrawal by any person exceeding the specified limit as mentioned therein. However, in the case of any person who is claiming TDS credit pertaining to Section 194N would not be eligible to file his return of income in ITR1.
- Section 115BAC provide for a special tax regime for individuals or HUFs. These special tax regimes provide for concessional tax rates, however, the taxpayer is not eligible for certain deductions and exemptions under the IT Act. Since these tax regimes have been made applicable by Finance Act, 2020 w.e.f. 1 April 2020 i.e. AY 2021-21, the ITRs have been revised in order to incorporate the optional tax regimes.
- For employees who have received ESOPs from an eligible start-up referred to in section 80-IAC, the Part B of Schedule TTI now requires disclosure of the amount of tax that has been deferred relating to income on ESOP received as a prerequisite.
- Separate effect of Marginal Relief on Surcharge needs to be disclosed.
- Schedule DI required bifurcation of the tax investments in accordance with the extended due dates of last year has been removed from the ITR Forms as it is no longer applicable.

Following documents are required for ITR filing:
     - PAN Card of the taxpayer.
     - In the case of a company or firm, the PAN card of all directors or partners are required.
     - In the case of a company or firm, the Aadhar card of all directors or partners is required.
     - Cancelled cheque of the taxpayer’s bank account is required.
     - The Bank statement for the concerned Financial Year is required to assess other incomes.
     - For business entities, except proprietorship, financial statements are required.
     - Details about the investments made or expenditure u/s 80 must be provided.
     - The salaried person should provide the TDS Certificate, known as Form 16.

Filing ITR in Bangalore comes with the following benefits:
     - If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of the loan would depend on your income. This can be established through filed ITRs in Bangalore.
     - There could be some TDS cuts on some investments. And you will have to file the ITR to claim a refund of the same. Or you may have paid excess tax on your income. To get the refund for the same, you must file ITR.
     - As per Income tax rules, losses are allowed to be carried forward and set off against capital gains. But this applies only to those individuals who file ITR in the relevant assessment year.
     - Although the Motor Vehicles Act does not make it compulsory to present the ITR while calculating the compensation in case of accidental death or disability, the procedures approved by Delhi High Court outlines the need for ITR for self-employed persons.
     - Not all Businessmen, consultants, and partners get Form 16. For self-employed individuals, ITR receipts become an important document. Filing ITR in Bangalore is the only proof of income and tax payment for them, in all sorts of financial transactions.