An Income Tax Return (ITR) is a formal document submitted annually to report income, deductions, and tax liability. It outlines various sources of earnings, such as salaries, business profits, or investment gains, and includes eligible deductions to calculate the final tax liability. Filing an ITR is mandatory for individuals and entities meeting specific income thresholds, ensuring compliance with tax regulations. This process enables taxpayers to reconcile their tax obligations, claim refunds if applicable, and maintain a transparent record with tax authorities. It plays a crucial role in promoting financial transparency and accountability.