An income Tax Return (ITR) is a form that is filed by every person holding a valid PAN, providing information to the income tax department about the income earned and the applicable tax.
Filing of income tax returns is mandatory for an individual person, Proprietorship, Partnership Firm, LLP, Company, Trust, or any other person whose income is chargeable to tax. A person generally files an ITR for a respective financial year to declare his income, expenses, tax deductions, investments, taxes, etc.
The Income Tax Department has prescribed various ITR forms for different kinds of taxpayers such as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. Every taxpayer has to file a specific ITR form which is dependent on his source of income, the amount earned, category of taxpayer, residential status, etc.
Income Tax Returns (ITR) should be generally filed under the guidance of a professional who shall have a good understanding of the Tax Laws to avoid penalties and fines.