It is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:

•  Individuals who fall within the respective tax slabs.

•  If it?s a Company or Firm, irrespective of the profit or loss made in a financial year.

•  If a tax refund needs to be claimed.

•  If a loss under a head of income needs to be carried forward.

•  If being a resident of India, one has an asset or financial interest in any entity located outside India.

•  If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.

•  If one is applying for a loan or a visa.

•  If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.

Depending on the type of income that is generated by the taxpayer, the form that must be submitted will be different. The various forms can be downloaded from the official website of the income tax department https://www.incometaxindia.gov.in/pages/downloads/income-tax-return.aspx The different types of ITR forms that are available are mentioned below:

ITR Form Name

Applicability

ITR-1

The form must be used by individuals who make an annual income of less than Rs.50 lakh via pension or salary and from only one house property.

ITR-2

The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties, and from foreign sources. However, the income of the individual must be more than Rs.50 lakh.

ITR-3

The form must be used by individuals who run a proprietorship or are professionals in India.

ITR-4

Individuals who are under the presumptive taxation scheme must use this form. In order for individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.

ITR-5

In order for association and body of individuals, Limited Liability Partnerships (LLPs), and partnership firms to report their income and tax computation, this form must be used.

ITR-6

Companies that are registered in India must use this form.

ITR-7

In case entities are claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.

You can file an ITR by visiting to the official website of the Income Tax Department. However, before you can file the IT Return online, you must first complete the registration process. The Government of India's Income Tax Department (ITD) has modified its web platform for e-filing income tax returns. The redesigned portal simplifies the e-filing process, which can be completed by following the steps below:

•  On the basis of the provisions prescribed by the Income Tax rules, you can find out your income tax liability.

•  You can refer to your Form 26AS to get a summary of your TDS payment for the different quarters of the assessment year.

•  On the basis of the eligibility criteria provided by the Income Tax Department (ITD), you will have to determine the category that you will fall under.

•  Visit the official e-filing portal of the income tax department at e-Filing Home Page, Income Tax Department, Government of India
  (https://eportal.incometax.gov.in/iec/foservices/#/login).

•  In case you are a new user, you can register yourself using the 'Register' button.

•  If you have already registered yourself on the portal previously, you can just click on the 'Login' button.

•  Click on the 'File Income Tax Return' option under the 'e-file' tab.

•  From the list provided on the website, you have to choose the category that you fall under ? individual, Hindu Undivided Family (HUF), and so on.

•  Choose the suitable ITR Form that is applicable to you.

•  You will be required to enter the details of your bank account as well. If you have already provided the same previously, you will be required to pre-validate the details.

•  After this, you will be redirected to a new web page where you will be able to check the pre-filled details of your ITR. Check the details and make changes if required. Once you are sure that all the details provided in the form are correct, confirm the same and validate it.

•  Once the process is complete, verify the returns and send a hard copy of the same to the Income Tax Department.

• In case the returns are not filed by the due date, huge penalties are levied on the taxpayer. Apart from penalties, there could be other inconveniences and consequences that the individual would face in case the returns are not filed. Depending on when the returns are filed after the due date, individuals could face penalties ranging from Rs. 1,000 to Rs. 10,000.