Income Tax return refers to tax form or forms an individual uses to file Income Tax with the Income Tax department. It is a way to inform the government about the money you have earned during a financial year and the taxes you have paid.
According to the Income Tax Act, Income Tax returns must be filed every year by an individual or business for all sorts of income one has received in that year which could be through wages, dividends, interest, capital gains and other sources. Such income needs to be above a basic exemption limit. If the returns show that one has paid excess tax during a given financial year, one is eligible for returns. In this article, we will focus on Income Tax returns for individual assessees.
About e-Filing of Income Tax returns
E-Filing or electronic filing is simply filing your Income Tax returns online. The traditional method to file returns is the offline way where one needs to go to the income tax department’s office or a bank branch to physically file returns.
Filing your tax returns through the Internet or online is an easier process because one does not need to take a physical print out of the documents.