What is income tax return with example

An Income Tax Return (ITR) is a formal document filed annually with the Income Tax Department to declare total income, deductions, and taxes paid for a financial year. It helps determine if the correct tax has been paid or if a refund is due. Example: If a salaried individual earns ₹8 lakh annually and has ₹1.5 lakh in tax-saving investments under Section 80C, they file an ITR to report these earnings and investments. This ensures they pay tax only on the net taxable income and can claim a refund if excess TDS was deducted.