What is the Financial Year and Assessment Year ?

“Financial Year (FY)” is the year starting on 1st April and ending on 31st March. The “Assessment Year (AY)” is the year coming after the FY. Financial Year is the year in which the income is earned and the Assessment Year is the year in which the income is assessed and tax returns are filed.

Should we keep a copy of the returns filed as proof and for how long ?

Yes, if possible you should always keep digital copies of filed ITR as they might be required for reference purposes. However, if it is not possible to maintain them in such a format, then you should keep their copies at least for the next 8 years.

Is the ITR filing process online?

Yes, the entire process is online and it can be filed through the official website www.incometaxindiaefiling.gov.in. Also, you can pay your income tax liability online. Furthermore, the acknowledgement copy of the filed ITR can also be downloaded through the official website.

What are the ITR forms to be filed by small businesses?

Few important forms are as follows:

• ITR 3: For individuals and HUFs having income from a proprietary business or profession.
• ITR 4: For Business & Profession to whom presumptive taxation is applicable and hence, are not required to maintain books of accounts.
• ITR 6: For Companies.