Myth: Tax filing is very complicated and needs lot of time and money

By | July 29, 2014

Tax filing is very complicated and needs lot of time and money: False

Tax filing is a simple and straight forward process. It can be done in a limited time and needs very limited expertise. The IT department has also appointed many Tax Return Preparers who can do this job for you. Also the assesse himself can file return online. It is just that he has to understand the process properly. Once he learns the process, it is very easy to file the return online. However, the acknowledgement form generated online (ITR V) will need to be submitted manually to the tax authorities.

The government has notified specified forms which can be used by an individual to file tax returns. A simple form (ITR-1), for instance, is prescribed if the individual only has salary income and interest income. However, an individual with income from house property or capital gain will need to file an ITR 2.  In case you have a digital signature, then you do not need to file the ITRV.

You also need to know which form you need to use for filing return. Below are the types of Return forms.

Types of Income Tax Return Forms

To file tax returns Income Tax Department had issued a series of forms applicable to different type of assessees:

ITR 1: This form is applicable for an individual who has no income other than Salary/ Pension and Interest.

ITR 2: This form is applicable for an individual who has income under different heads but not business /profession income.

ITR 3: This form is applicable for an individual who is partner in a partnership firm.

ITR 4: This form is applicable for an individual who has income from business/profession.

ITR 5: This form is applicable for a Firms, AOP, BOI and Local Authority.

ITR 6: This form is applicable for a Company.

ITR 7: This form is applicable for a Trust.

ITR 8: This form is used for filing only FBT Return.

After looking at this it does not seem filing return is difficult. Just try, read the procedure properly on the income tax website for filing return, check what and all documents you require, make sure everything is ready and you can file your return quickly and easily without any confusion.

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