What is ITR?

A tax return is a form(s) filed with a taxing authority that reports income, expenses and other pertinent tax information. Tax returns allow taxpayers to calculate their taxliability, schedule tax payments, or request refunds for the over-payment of taxes.

Types of ITR Forms

1. ITR1 – Salary/Pension, Other Sources, Income from one house property
2. ITR2 – Every income from ITR-1 >50 Lacs, Capital Gains, More then one house property,Foreign income /assets,EquityShares
3. ITR3 – Every Income from ITR 2, Business or Profession, as a partner in a firm, presumptive income >50 Lacs
4. ITR4 – Every Income from ITR 1 presumptive income under Salary,Pension, other sources, one house property (Total income > 50 Lacs)
5. ITR 5 – Applicable to LLPs, Firms, AOPs, BOIs
6. ITR 6 - Companies not claiming exemption under section 11
7. ITR 7 – Person/Companies under Section 139(4A), 139(4B), 139(4C), 139(4D)

ITR Benefits

1. Claiming refund
2. Compensate losses in the next financial year
3. Establishing income proof in compensation cases
4. Use as address proof
5. Helps the bank loan documentation process easier
6. Helps to avoid extra interest
7. Avoid penalties or scrutiny from the tax department
8. Credit Card Processing
9. For a hassle-free visa application procedure
10. To buy an insurance policy with a higher cover
11. Makes life easier for freelancers and independent professionals