Income Tax Return filing
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An Overview of Income Tax Return filing for Salary & Business
An Income Tax Return (ITR) is a document that taxpayers in India are required to file with the Income Tax Department each year, reporting their income earned and the taxes paid on that income. The purpose of filing an ITR is to enable the Income Tax Department to assess a taxpayer's tax liability and to determine if the taxpayer has paid the correct amount of tax.
ITR forms are available in different categories based on the sources of income of the taxpayer. Some of the common ITR forms include ITR-1 (Sahaj) for salaried individuals with income up to Rs. 50 lakhs, ITR-2 for individuals and HUFs not having income from business or profession, ITR-3 for individuals and HUFs having income from business or profession, and ITR-4 (Sugam) for presumptive income from business or profession.
The deadline for filing an ITR is July 31st of each year for most taxpayers. However, the deadline may be extended by the government in case of unforeseen circumstances.
Filing an ITR is mandatory for individuals whose income exceeds the basic exemption limit or for those who wish to claim a refund of taxes paid. Non-filing or late filing of an ITR may result in penalties, interest, and even prosecution in some cases.
Types of ITR Forms
In India, there are different types of Income Tax Return (ITR) forms available, depending on the type of income earned by the taxpayer and the nature of their financial transactions. The following are the commonly used ITR forms:
ITR-1 (Sahaj): This form is applicable for individuals with income up to Rs. 50 lakhs per annum, earned through salary, pension, or income from one house property.
ITR-2: This form is applicable for individuals and Hindu Undivided Families (HUFs) who have income from sources other than business or profession. It is also applicable for those who have income from more than one house property, capital gains, or foreign assets.
ITR-3: This form is applicable for individuals and HUFs who have income from business or profession. It is also applicable for those who have income from other sources in addition to business or profession.
ITR-4 (Sugam): This form is applicable for individuals and HUFs who have opted for the presumptive income scheme for business or profession under Section 44AD, 44ADA or 44AE of the Income Tax Act.
ITR-5: This form is applicable for firms, limited liability partnerships (LLPs), association of persons (AOPs), and body of individuals (BOIs).
ITR-6: This form is applicable for companies that are not claiming an exemption under Section 11 of the Income Tax Act.
ITR-7: This form is applicable for trusts, political parties, and other entities that are eligible for tax exemption under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act.
It is important to choose the correct ITR form to avoid any complications during the tax filing process. The Income Tax Department updates the ITR forms regularly, so taxpayers should always check for the latest versions before filing their returns.
Official Website for Income Tax Return : Income Tax portal Link