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ITR Returns

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Introduction

We have all heard many times to file the Income Tax Return on time. There many types of the income tax return forms. Which one to file and when to file? This article reveals all about the Income tax and Income Tax Returns.

Income tax is the direct taxable amount paid on the annual income of the individual or a business entity. Income tax return (ITR) form is filled by an individual or by business entity in order to declare his income. These ITR forms includes many types of forms like – ITR 1, ITR 2, ITR 3 etc. which are filled according to its entity type and nature of income earned

INCOME TAX RETURN or ITR

Income Tax Return (ITR) is a medium through which the taxpayers submit the information about their income earned. It also contains applicable tax towards their income. This returns is filled in prescribed forms – ITR forms. There are in total 7 such forms namely - ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. These returns are to be filled every year at end of the financial year on or before the specified due date.

ENTITY

DUE DATE

Individual

31st July

Body of Individual

31st July

Hindu Undivided Family

31st July

Association of Person

31st July

Business having Audit

30th September

Business having  Transfer prising report

30th November

The applicability of ITR forms depends - the source of income of taxpayer, amount of income earned in that financial year and category the type of entity e.g. individuals, HUF, company, etc.

BENEFITS -

  • Maintains transparency by income disclosure
  • Required for loan disbursement
  • Helps in calculation of net worth of a person
  • Helps in getting refund of tax paid from government
  • Important in getting a credit card
  • Required for Visa application

TYPES of ITR FORMS -

There are various types of ITR Forms categorized on the nature of person and nature of income -

ITR-1 or SAHAJ

Applicable on -

  • Individual Assesse having an income up to INR 50 Lacs
  • Nature of Income i.e. from Salary or pension,
  • Income from house property only one
  • Other sources income such as interest income.

Non Applicable on -

  • Individual Assesse having income above INR 50 lacs
  • Unlisted share holder
  • Director of company
  • Income from outside India or having asset located outside India
  • If there is any income from business or profession or from capital gains
  • If there is any income from more than one house property
  • Any income from lottery
  • If the agriculture income is exceeding INR 5000.
  • Having loss from house property or relief under section 90 /91

ITR 2

Applicable on -

  • Individual having income exceeding INR 50 lac
  • Director of a company
  • Having company’s unlisted shares
  • Income from outside income
  • Income from house property in case there is more then one house
  • Income from salary/ pension
  • Income from capital gains

Non Applicable on

  • If there is any income from business or profession or from capital gains

ITR 3

Applicable on

  • Applicable to HUF and to all individuals
  • If there is any income from business or profession or from capital gains
  • Individual who are not eligible to file ITR 1, ITR 2, and ITR 4
  • Individual Director in a company
  • Investments in unlisted equity shares
  • If there is any income as a partner in the firm

ITR 4 or Sugam

Applicable on -

  • Applicable for Individual, HUF, Partnership
  • Having income up to 50 lakh
  • Income included in ITR 1
  • Income earned under section 44AD, 44AE,44ADA on presumptive tax scheme.

Non Applicable on -

  • LLP having income up to 50 lakh
  • Being a director of company
  • Holder of unlisted shares
  • Having any asset located outside India
  • Income from outside India
  • Having signing authority account located outside India
  • Income from brokerage, commission, etc.

ITR 5

Applicable on -

  • Applicable on all Society, firm, LLP and partnership
  • Association of Person (AOP)/ Body of Individuals (BOI)
  • Artificial Judicial Person (AJP)

ITR 6

Applicable on -

  • On all the companies that are not claiming any exemptions under section 11 i.e. any income earned from property which was kept for charitable or religious purposes of the Income Tax Act

ITR 7

Applicable on -

Applicable to all the individuals and companies who file returns under-

  • section 139(4A) - income from a property belonging to a trust and used for religious or charitable purposes
  • section 139(4B) - filed by political party in case the income generated is more than the maximum amount
  • section 139(4C) - filed by scientific association, institutions or association under Section 10(23A), medical institutions
  • Section 139(4D) - filed by education institution
  • section 139(4E) - Business trusts which are exempted from furnishing income or loss
  • Section 139(4F) - Investment funds presented under Section 115UB
  • Have exemption under clauses of section 10 of Income Tax Act.

 

Form

Applicability

Salary

Exempt Income

Capital Gains

House Property

Business Income

Other Sources

ITR-1

Indian resident, Individuals and HUF

Yes

Yes

No

Yes

No

Yes

ITR-2

HUF and individuals

Yes

Yes

No

Yes

No

Yes

ITR-3

Partner, HUF, individuals

Yes

Yes

No

Yes

Yes

Yes

ITR-4

Firm, HUF, or individual

Yes

Yes

Yes

Yes.

Only for business income

Yes

ITR-5

LLPs or Partnership Firms

No

Yes

No

Yes

Yes

Yes

ITR-6

Companies

No

Yes

No

Yes

Yes

Yes

ITR-7

Trusts

No

Yes

No

Yes

Yes

Yes

Conclusion

Timely filing of the Income Tax not only provides the multiple benefits but also helps in promoting the growth of the country. The amount collected through the paid tax is utilised for the growth of country.

ITR can be filled by filing the various forms depending upon the nature of the income collected. The whole process of ITR filing is fully online. Individuals can file ITR through various forms depending on their source of income through the official website of the Income Tax Department – (ITR Returns). These forms are in PDF format and can be electronically filed.

The filing of the ITR is quite easy but it is advisable take the help of expert so that ITR can be filled within due date. This way penalties can be avoided. For any query, feel free to contact Corpseed.

BOOK A FREE CONSULTATION

Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.

Author
Shamshad Alam
Experienced Digital Marketer with a demonstrated history of working in the internet industry. He likes to write about the latest technology trends, Skilled in Digital Marketing likes. Search Engine Optimization, SMO, SEM, PPC, Content Writing, and, Designing, etc.