Every person, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed54 form and verified in the prescribed manner. it's a good practice to file or e-file your income tax return. An income tax return is an important document that you must produce at the time of availing a home loan, as it reflects your financial prosperity. An income tax return—as a proof of income—shows your capacity to repay a loan. Even a winner of “Kaun Banega Crorepati” has to file return of income. income tax return form ranges from ITR 1 to ITR 7, used for different types of income. Some income tax return forms are longer than the others, and they may need additional disclosures such balance sheet and a profit and loss statement information.