Income Tax Return

Introduction
Every Individual having Gross Total Income above Rs 200,000 has to compulsory file Income Tax return. Exemption for salaried Individual- Income Tax department has exempted the Return filing for salaried person if their net taxable Income does not exceed Rs 500,000 however the exemption is available only in the case where the total Income includes Income only from Salary and saving Bank A/c interest up to Rs 10000.

If Total Income Includes :
    Total Income If Includes                   Return Filing Compulsory
    Business income Yes, (Even if the Total Income does not exceed    
Rs 500,000)
    Capital Gain Yes, (Even if the Total Income does not exceed    
Rs 500,000)
    Interest Other than saving bank
   Interest (i.e.) interest On Fixed
   Deposits, Interest on Bonds etc. 		Yes, (Even if the Total Income does not exceed    
Rs 500,000)
    House Property Yes, (Even if the Total Income does not exceed    
Rs 500,000)
    Winning form lottery, Card games Yes, (Even if the Total Income does not exceed    
Rs 500,000)

Means of Filing Tax Return :

When you file your tax return, it is proof that you have an income for which you have paid tax. According to the Income Tax Act, 1961, you have to file ITR every year. Filing it provides legality to what you are earning. Not filing it means that you as a person have not disclosed your income. The ITR gives a standard proof of income to a person and helps to establish a record with the tax department. Also, if you have paid tax more than what was required, you will have to file the return to get a refund for the excess amount paid.


ITR Form Prescribed by the Income Tax Department

ITR Form 1 : Individual/HUF only (Income from Salary, Income from House Property and income From other Sources)
ITR Form 2: Individual/HUF only (who cannot file ITR 1 and their total income does not include any income chargeable to Income Tax under the head “Profit & Gains From Business and Profession”