Income Tax Return (ITR) is a form through which individuals and businesses report their financial income, expenses, and taxes paid to the government. Filing an ITR is an important procedure as it helps the government to be informed if a taxpayer has paid the correct amount of tax or if they are eligible for a refund.
The Income Tax Department has classified taxpayers into different categories, and based on their income sources, they must file the appropriate ITR form. Filing an ITR is not just a legal obligation but also a way to maintain financial transparency and benefit from tax refunds and deductions.