Income Tax Returns (ITR) are forms that taxpayers in India use to report their income, calculate their tax liability, and disclose other relevant financial information to the Income Tax Department. Filing an ITR is mandatory for individuals, companies, and firms whose income exceeds the basic exemption limit, and it plays a crucial role in maintaining transparency in income reporting and tax compliance. There are different types of ITR forms depending on the nature of income and the category of the taxpayer, such as ITR-1 for salaried individuals and ITR-2 for those with income from other sources.

Taxpayers may also be entitled to tax refunds if the tax paid (including TDS) exceeds their actual tax liability. Refunds occur when excess tax is deducted from an individual’s or entity’s income, and the taxpayer files an ITR claiming the excess amount. The process for claiming a refund involves filing the appropriate ITR form, and the Income Tax Department processes the refund and credits it back to the taxpayer’s bank account, typically within a few weeks to a few months.