Income Tax Return Filing
In India, there are different types of Income Tax returns (ITRs) that taxpayers can file based on their sources of income, residency status, and other factors. Here are the main types of Income Tax returns in India:
1. ITR-1 (Sahaj)
ITR-1, also known as Sahaj, is the simplest Income Tax return form. It is applicable for individuals who have income from:
- Salary or pension
- One house property (excluding cases where loss is brought forward from previous years)
- Other sources such as interest income, family pension, etc., with total income up to Rs. 50 lakhs.
3. ITR-3
ITR-3 is applicable for individuals and HUFs who are partners in a firm and have income from business or profession under the presumptive taxation scheme (section 44AD, 44ADA, 44AE).
5. ITR-5
ITR-5 is applicable for:
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- Partnership firms
- Limited Liability Partnerships (LLPs)
- Association of Persons (AOPs)
- Body of Individuals (BOIs)
- Artificial Juridical Persons (AJP)
- Cooperative societies and registered societies
7. ITR-7
ITR-7 is applicable for persons including companies who are required to furnish return under sections 139(4A), 139(4B), 139(4C), 139(4D), and 139(4E) of the Income Tax Act, such as:
- Trusts
- Political parties
- Colleges, universities, and educational institutions
- Hospitals, medical institutions, etc.
2. ITR-2
ITR-2 is applicable for individuals and Hindu Undivided Families (HUFs) who have income from:
- Salary or pension
- More than one house property
- Capital gains (short-term and long-term)
- Other sources such as interest income, agricultural income exceeding Rs. 5,000, etc.
4. ITR-4 (Sugam)
ITR-4, also known as Sugam, is applicable for individuals, HUFs, and firms (other than LLP) who have opted for the presumptive taxation scheme under sections 44AD, 44ADA, 44AE. It is also applicable for professionals under the presumptive taxation scheme.
6. ITR-6
ITR-6 is applicable for companies other than companies claiming exemption under section 11 (income from property held for charitable or religious purposes).
It’s essential for taxpayers to choose the correct type of Income Tax return form based on their income sources and other relevant factors to ensure accurate filing and compliance with tax laws. Additionally, taxpayers should file their Income Tax returns within the specified due dates to avoid penalties and interest charges.
Benefits of Filing Income Tax Return
Filing Income Tax Returns (ITRs) in India offers several benefits to taxpayers, both individuals, and entities. Here are some of the key benefits of filing Income Tax Returns in India:
Legal Compliance: Filing Income Tax Returns fulfills the legal obligation of taxpayers under the Income Tax Act, 1961. It ensures compliance with tax laws and helps taxpayers avoid penalties and legal consequences for non-compliance.
Claiming Tax Refunds: One of the significant benefits of filing Income Tax Returns is the possibility of claiming tax refunds. Taxpayers may be eligible for refunds if they have paid excess tax through TDS (Tax Deducted at Source), advance tax, or self-assessment tax.
Carrying Forward Losses: Filing Income Tax Returns allows taxpayers to carry forward losses incurred in a financial year, such as capital losses or business losses. These losses can be set off against future profits, reducing tax liability in subsequent years.
Proof of Income: Income Tax Returns serve as documentary evidence of a taxpayer’s income, financial transactions, and tax payments. They are often required as proof of income for various purposes, such as applying for loans, visas, or government benefits.
Loan and Credit Approval: Banks and financial institutions typically require Income Tax Returns as proof of income when processing loan applications or extending credit facilities. Filing ITRs regularly improves the chances of loan approval and access to credit at favorable terms.
Visa Application : Many countries require applicants to submit Income Tax Returns as part of the visa application process, especially for work visas or immigration purposes. Filing ITRs demonstrates financial stability and compliance with tax laws, enhancing the visa application’s chances of approval.
Government Tenders and Contracts : Government agencies often require businesses to submit Income Tax Returns as part of the tendering process or when bidding for contracts. Filing ITRs regularly enhances a company’s credibility and eligibility for government projects.
Credit Card Application : Financial institutions consider Income Tax Returns as proof of income when processing credit card applications. Regularly filing ITRs may increase the likelihood of credit card approval and obtaining higher credit limits.
Avoiding Penalty and Prosecution: Filing Income Tax Returns within the specified due dates helps taxpayers avoid penalties, interest charges, and legal consequences for non-filing or late filing of returns. It demonstrates compliance with tax laws and contributes to a hassle-free tax journey.
Building Financial History : Regularly filing Income Tax Returns contributes to building a comprehensive financial history. It reflects responsible financial behavior and helps individuals and businesses establish a positive track record with tax authorities and financial institutions.
ITR filling process
- Choose required Package and Pay online with different payments modes available.
- Upload Required Documents for ITR Filing & Information to our web portal in your Login space or via mail.
- On placing the order, your application is assigned to one of our dedicated professional.
- Our professional team will prepare computation of income & net tax liability and computation share with you.
- On after confirmation generate the income tax challan for income tax payment.
- After tax payment, file the income tax return and share ITR-V via email.
Documents Required For Income Tax Return Filing
- PAN Card
- Aadhar No
- Income tax Password
- Email & Mobile no as per your Income tax Record
- Cancelled Cheque for account Information
- Bank Statement
- Form 16 and 16A
- Digital Signature Certificate
Packages
- Filing of ITR-1 for an individual with salary.
- Filing of ITR-4 of a person earning business or professional income who have opted for presumptive income scheme
- Filing of ITR 3, 5 or 6 for LLP, OPC, Companies, Partnership Firms and individuals who have not opted for the presumptive income scheme
Frequently Asked Questions
What are the due dates of filing Income Tax Returns ?
For Individuals, the last date of filing Income Tax Return is 31st July of next financial year
For Companies & Persons who require tax audit under section 44AB, the last date of filing Income Tax Return is 30th September of next financial year
What if i am not able to file my income tax return on time?
If you mandatorily requires filing income tax return but failed to do so then you are liable to pay penalty amounting to INR 5000
I have filed my income tax return incorrect what should I do?
You can file revised return & correct the mistakes/errors. The revised return can be filed at any time before the expiry of 1 year from the end of the relevant assessment year
Who can not file ITR 1?
- If your total income exceeds Rs 50 lakhs.
- If you have foreign assets
- If you have agricultural income which is more than Rs. 5,000,
- If you have taxable capital gains
- If you have income from business or profession
- If you have income from more than one house property
Who can not file ITR 2?
This Return Form should not be filed by an individual whose total income for the assessment year 2017-18 includes Income from Business or Profession.
