Income Tax Return for Individuals
Income Tax Return is a form in which an Assessee files his information about Income and tax payable to the Income Tax Department. According to the income tax laws, Income Tax Return must be filed every year by a person or business that makes any income in the form of a salary, business gains, earning from house property or gains from dividends, capital or other sources during a financial year.
Due Date to file ITR
The Income Tax Act 1961 obligates citizens to file returns for every financial year within the specified due date. The due date to file Income Tax Return for the individuals who do not need to get their ITR audited under any law is 30th July and for those who need to get their ITR audited under law, the due date is 30th November which may be extended by the department. However, this is changeable on the issuance of directive to this effect by the Income Tax Department or the Ministry of Finance, India.
Updated Due date for F.Y. 2019-20 i.e. A.Y. 2020-21 is 30th November for those whose Audit is not compulsory and 31st October for those whose audit is require.
Belated return for F.Y. 2018-19 is 30th September.
Conditions that mandate the filing of Income Tax Returns for Individual
The prescribed limit for the same is given below as per the different age of the individuals in a tabulated manner:
Types of ITRs
There are seven types of returns viz. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 to be filled by the individual based on a few circumstances like the source of income, total amount of income in F.Y. etc. Let us have deeper dive into these circumstances and type of ITR that is suitable for them.
ITR-1 OR SAHAJ
Suitable for: Resident individual whose source of total income for the A.Y. 2018-19 includes:
Conditions when use ITR 1 Form is restricted
Suitable for: Individual or a Hindu Undivided Family (HUF) who are not involved in carrying out any business or profession but the source of total income for the AY 2018-19 includes:
Note: Total income from the first four sources must be above 50 Lakhs)
When the income of another individual like spouse or child is clubbed together with assesses income, ITR 2 is allowed to be used when income comes under any of the above-mentioned categories.
Ineligibility to file ITR 2
An individual whose total income for the AY 2018-19 encompasses Income from Business or Profession are not eligible to file ITR 2.
Suitable for: Individual or Hindu Undivided Family whose source of income is proprietary business or profession i.e. the individuals or HUFs whose source of income includes:
ITR-4 or Sugam
Suitable for: Individuals & HUFs who are residents with profession or business as a source of income. Partnership firms (except LLPs) and individuals who are registered under the presumptive income scheme as per Section 44AD, 44ADA and 44AE of the Income Tax Act are also eligible to file ITR-4.
Note:When the turnover of the business surpasses the limit of INR 2 crore, the taxpayer becomes ineligible to file ITR-4, instead he needs to file ITR-3. Ineligibility to file ITR 4
Ineligibility to file ITR 4
Following conditions knocks the eligibility to file ITR-4
Suitable for: Firms, AOPs (Association of persons), LLPs, BOIs (Body of Individuals), Estate of deceased, Artificial Juridical Person (AJP), Estate of insolvent, Investment Fund and Business Trust.
Suitable for: Companies that are not claimant u/s 11 of the Income Tax Act, 1961 or companies other than those which need to file ITR in Form ITR-7.
Suitable for: Tax assessee who needs to file ITR under the subsections of Section 139 of the Income Tax Act, 1961 viz. section- 139(4A), 139(4B), 139 (4C) and 139 (4D).
An Overview: Types of ITRs and Relevance
|Form||Applicability||Salary||Exempt Income||Capital Gains||House Property||Business Income||Other Sources|
|ITR-1||Resident Indian Individuals and HUFs||✓||Yes. Note: Income from agriculture must be equal to/less than INR 5,000.||✘||✓ Note: Income must be only from one house property||✘||✓|
|ITR-2||Individuals and HUFs||✓||✓||✘||✓||✘||✓|
|ITR-3||Individuals, HUFs and Partner in a firm.||✓||✓||✘||✓||✓||✓|
|ITR-4||Firm, HUF, or Individual||✓||✓ Note: Income from agriculture must be equal to/less than INR 5,000.||✓||✓ Note: Income must be only from one house property||Only for the presumptive business income.||✓|
|ITR-5||LLPs or Partnership Firms||✘||✓||✘||✓||✓||✓|
So, ITR 1, ITR 2, ITR 3 and ITR 4 are the only ITR forms for individuals. Now we will discuss the process to download the ITR Forms.
Download & File the ITR forms
Everyone is not well-acquainted with the ITR filing process, understanding that the IT Department has presented a few simple steps to file ITR on its official website. However, yet it remains a complicated process so to make it a smooth sailing process, some CA consultancies or companies that CA/CS services file the ITR on behalf of the Assessee by charging a nominal fee.
However, it is a duty of the assessee to choose right for right services. For more information, get in touch with us. Happy to help you!
Content: The CBIC Provisional credit (i.e.10%) reduced to 5% under Rule 36(4) w.e.f. 1 January 2021
Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due