Income Tax Return

What is actually mean by 'Income Tax Return'?

A form through which a person or company report their taxable income from different sources, claim tax deductions and declare net tax liability to the income tax authority is known as Income Tax Return (ITR). For fast and easy processing, Income Tax Department of India now made filing online which is also known as e-filing. Filing an income tax return is must as it is considered as a crucial document in various situations like applying for home loan, applying for higher studies in abroad, to check your financial discipline etc.

Who must file their Income Tax Return?

Any person or company belonging to following criteria’s must file their income tax returns through online mode

• Using digital signature, it is must for every company to file their income tax return.
• It is compulsory for a firm or individual or HUF to file their income tax return if their books of accounts are audited under section 44AB.
• It is compulsory for any individual or HUF to file their income tax return whose annual income is more than Rs. 5 Lakhs.
• It is compulsory for a person to file his/her income tax return if they are claiming tax relief under section 90, 90A or 91 of the Income Tax Act, 1961.
• It is compulsory for a resident taxpayer to file their income tax return if they have assets located outside of India.

Documents needed prior to Filing Income Tax Return

To fill your basic details and your income details, keep following documents ready before proceeding to file income tax return

• PAN card.
• Form 16 (for salaried individuals).
• Salary Slips.
• TDS certificate.
• Bank statement.
• Proof of tax-saving investments.
• Form 16A/16B/16C.
• Interest certificates from banks or post offices.
• Form 26AS.

Various Forms for Filing Income Tax Return

For different types of taxpayers and for different types of incomes, Income Tax Department of India derived separate forms for fast and easy filling of income tax returns. Tax payer must select the one form that best suits their criteria

ITR-1

Individuals having annual income less than Rs. 50 Lakhs through salary or pension and rented have only one house property must use this form.

ITR-2

Individual having annual income more than Rs. 50 Lakhs, have two or more house property and are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, must use this form.

ITR-3

Individuals who are professionals or individuals who are operating a proprietorship business in India must file this form.

ITR-4

Any taxpayer having business income less than Rs. 2 Crore or professional income less than Rs. 50 Lakhs and are also enrolled under the presumptive taxation scheme must file this form.

ITR-5

Partnership firms, LLPs, associations and body of individuals must file this form for the purpose of reporting their income and computation of tax.

ITR-6

Companies registered in India must file their income details using this form.

ITR-7

Charitable trusts, political parties, scientific research institutions and colleges or universities who wish to claim exemptions must file this form.

Due Date for Income Tax Return

31^St July

For individual taxpayers, due date for filing income tax return is 31^st July.

30^th September

For companies and taxpayers requiring tax audit, due date for filing tax return is 30^th September.

Penalty for Late Filing Income Tax Return

Government of India has made it very strict to file your income tax returns on time else you need to pay heavy penalties or fine. Following are the updated penalty details

• If a person or company files income tax between 1st August and 31st December, they will be charged Rs. 5000.
• If a person or company files income tax between after 31^st December, they will be charged Rs. 10,000.
• WIf taxable income of person is less than Rs. 5 Lakhs, he/she will be charged Rs. 1000.