Any person who is subject to the Income Tax Act of 1961 is required to pay tax on the income earned during a specific financial year. The assessee may be a person, a partnership, a Hindu Undivided Family, or any other type of business entity.

Taxpayers have been divided into groups to make compliance easier. Every category of taxpayer is required to calculate their taxable income in accordance with the guidelines outlined in the Income Tax Act of 1961. After calculation, the income tax returns for the taxpayer who is applicable are filed.

An income tax return is a form in which the taxpayer—whether they are an individual, business, or Hindu undivided family—discloses information about their income, claims any applicable exemptions and deductions, and declares the amount of tax they owe on that income. The amount of taxes paid by the taxpayer is also shown on the income tax return.

The taxpayer must file an income tax return at the end of each financial year with data and information pertaining to his income and the tax due thereon.

Two methods, one online and the other offline, are available for filing income taxes. Now, all income tax returns must be filed through the ITR eFiling method only, in accordance with government directions.