Income Tax / TDS Return

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Income Tax / TDS Return


1.  What is ITR?
Income Tax Return is a form in which all the taxpayers file information of their income earned and tax applicable to the income tax department. The department has provided 7 different forms of ITR to file. They are ITR 1, ITR2, ITR3, ITR4, ITR5, ITR6, and ITR7 till the date. Every tax payers should file their ITR before the DUE date. The applicability of ITR forms may vary according to the sources of income of the taxpayers, the amount of the income earned and the category the taxpayer hails like individuals, HUF, Company or organization etc.

2. Why should we file ITR ?
  It is mandatory to file ITR in India if any of the conditions mentioned below is applicable to us :
  1. If the gross annual income of an individual is more
 
Particulars Income Earned Amount
For individuals below 60 years Rs. 2.5 Lakh
For individuals above 60 years but below 80 years Rs. 3.0 Lakh
For individuals above 80 years Rs. 5.0 Lakh
 
  1. If you we have more than one source of income like house property, capitals, legacy etc.
  2. If we have earned in foreign assets or invested in it during the FY.
  3. If we wish to apply for a visa or a loan.
  4. If we are a company or firm, irrespective of profit or loss.
  5. If we want to claim income tax refund.
 
3. Which ITR we should file?
ITR 1- It is also called SAHAJ.
This return form is for a resident or individual whose total income for the assessment year includes:
  • Income from salary or pension
  • Income from one house property
  • Income from other sources(excluding income from Lottery and Race horses. )
  • Agricultural income up to Rs. 5000
  Who cannot file ITR 1?
  • Total income more than 50 lakh
  • Agricultural Income exceeding Rs.5000
  • If one has income from business or profession
  • If one is a director in a company
  • Having foreign assets or foreign income
  • Having income from more than one house property.
 
ITR-2 - ITR-2 is for an individual or a Hindu Undivided Family (HUF) whose total income includes:                
  • Income from salary/pension; or
  • Income from house property
  • Income from other sources including lottery and horse Races.
[Total income should be more than 50 lakh of the above income type]
  • If one is an individual director in a company
  • If one has put investments in unlisted equity shares during the financial years.
  • Agricultural income more than Rs. 5000

Who cannot file ITR -2?
This return form should not be used by an individual whose total income for the assessment year includes income from business or profession.

ITR-3-The current ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible to file ITR 3:  
  • Carrying on a business or profession
  • If one is an Individual Director in a company
  • If one has had investments in unlisted equity shares at any time during the financial year
  • Return may include income from House property, Salary/Pension and Income from other sources
  • Income of a person as a partner in the firm
 
ITR-4- The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also includes those who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

Who cannot file ITR4-
  • If one’s total income exceeds Rs 50 lakh
  • Having income from more than one house property
  • Having foreign assets or foreign income
  • If one has any brought forward loss or loss to be carried forward under any head of income
  • If one is a Director in a company
  • Having income from any source outside India
  • If one has signing authority in any account located outside India
ITR-5  ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

ITR-6  For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.

ITR-7  ForIndiviuals including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
  • Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
  • Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
  • Return under section 139(4C) is required to be filed by every –
    • Scientific research association;
    • News agency ;
    • Association or institution referred to in section 10(23A);
    • Institution referred to in section 10(23B);
    • Fund or institution or university or other educational institution or any hospital or other medical institution.
  • Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
  • Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions of this section.
  • Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish return of income or loss under any other provisions of this section.


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