The beginning of the new business year is the crucial moment when you must properly arrange all financial matters for the upcoming year. This covers every aspect, including investments and taxes. Even though a lot of taxpayers know how important it is to submit taxes, many still need to decide whether they must file an ITR after paying advance tax.
In India’s tax system, advance tax and ITR (Income Tax Return) serve distinct purposes. An Individual Tax Return (ITR) is a legal statement that businesses and individuals file with the Income Tax Department, detailing the income they made in a given fiscal year. In contrast, advance tax allows taxpayers to pay their income tax during the fiscal year in installments as opposed to all at once at the end of the year.
You must file an Income Tax Return (ITR) form with the Income Tax Department. It includes information about your earnings and the taxes you will pay within a certain business year (April 1 to March 31 of the following year). ITR filing is crucial for a variety of reasons.
- Tax Liability: Based on your income source and stated deductions, this aids the government in calculating the amount of income tax that you owe.
- Tax Refund Claim: When completing an ITR, you have the option to request a refund from the Income Tax Department if you have paid more tax than is required.
The IT Department states that everyone whose income exceeds the maximum exemption level must file an income tax return.
So, Even After Advance Tax, Is It Still Necessary To Submit An ITR?
It is required of taxpayers to complete an income tax return following advance tax payment. This completes the income self-assessment process and computes the corresponding tax. There will be a penalty for failing to file income taxes.
