There are different ITR forms for different sources of income. An Income Tax Return Form (ITR) form is simply a form that you need to fill up declaring your sources of income. Since the employer is not privy to this activity it becomes your responsibility to declare this source of income to the Income-tax department and paying the appropriate amount as tax.įiling Income tax returns – Filing income tax returns is a mandatory way of communicating to the IT department all the sources of income you have including your salary.

As we now know this activity falls under “Non-speculative Business Income”. Now, what if you have an income source besides your salary?įor example for the given year assume besides drawing a salary, you also made a profit by actively trading delivery based equity trading. This is usually called ‘ Tax Deducted at Source (TDS)’. Paying Income tax – If you are employed and draw a salary you very clearly know that your employer on your behalf deducts tax (based on your tax slab) and pays the income tax on your behalf. Many are of the opinion that if they pay income tax the act of filing income tax is not really necessary. I have noticed from my interactions with many that they are confused between the two actions i.e ‘paying income tax’ and ‘filing income tax’. Find below a brief explanation of everything important on ITR that you need to know as an investor/trader. The last step of taxation is filing your Income tax returns (ITR), and this can be done using ITR forms.

Itr 2 form download