An Income Tax Return is a statement of income earned to calculate tax liability and payment or refund of taxes. Thus, the purpose of filing the return is to report our income and taxes paid thereon to the government. Tax returns must be filed every year for an individual or business that received income during the year, whether through wages, interest, dividends, capital gains or other profits. In this part of the return, the person preparing it must indicate all forms of income received during the year from all sources.
Any person whose income exceeds the basic exemption limit as specified in the Income Tax Act, 1961 is required to file an Income Tax Return. Now, the basic exemption limit changes from year to year. Any individual whose income exceeds Rs. 2,50,000 (for FY 2016-17) is required to file an income tax return in India. A TDS Return is a quarterly statement which has to be submitted to the income tax department. Submitting TDS Return is mandatory if you are a deductor . It has details of TDS deducted and deposited by you.