Income Tax Return (ITR)

Income Tax Return (ITR) – An Income Tax Return (ITR) is a formal statement filed by taxpayers with the Income Tax Department, declaring their income, deductions, and taxes paid during a specific Financial Year (FY). Filing an ITR allows individuals, businesses, and other entities to report total income, claim refunds for excess taxes paid, and fulfill legal tax obligations. ITRs also serve as an official record of income for purposes such as loan applications, visas, and financial verification. Types of ITR Forms: Different forms of ITR exist based on the type of taxpayer and sources of income: ITR-1 (Sahaj): For salaried individuals with income from salary, one house property, and other sources. ITR-2: For individuals and Hindu Undivided Families (HUFs) with income from capital gains or foreign assets. ITR-3: For individuals and HUFs with income from business or professional sources. ITR-4 (Sugam): For individuals, HUFs, and firms opting for the presumptive income scheme.

Example: A salaried employee earning a salary and interest on savings deposits during FY 2022–23 must file an ITR in Assessment Year (AY) 2023–24, reporting total income,