INCOME TAX RETURN

INCOME TAX RETURN

What is Income Tax Return

Income tax is tax levied on the income of a person by the government as per the provisions in the Income Tax Act, 1961. It is levied on the income earned during the year starting from the financial year, 1st April ending on 31st march.

An Income tax Return is a statement of Income earned to calculate tax liability and payment or refund of taxes to the government. Thus the purpose of filing the return is to report our income and taxes paid to the government.

File Your Income Tax Return Through Taxcure India

Every person is liable to pay tax in India if his Income is more than the income notified by the government in the slab rates. The definition of person includes

• An Individual
• A Hindu Undivided Family (HUF)
• A Company
• A Firm an Association of Persons (AOP) or a Body of Individuals (BOI)
• A Local Authority
• Artificial juridical persons

Types of ITR Forms

There are nine different types of ITR forms which you can use during ITR filing.

1. ITR 1 – ITR 1 is a form for those individuals who have income of up to Rs. 50 lakh from pension, salary, income from other sources and one house property. However, all salaried persons can not use this form to file taxes.
2. ITR 2 – This form can be used by resident individuals or Hindu Undivided Families (HUF) who cannot file the ITR 1 or Sahaj form. However, if your income comes from a business or profession, then you cannot use ITR-2.
3. ITR 2A – This is a newly launched ITR form created for HUFs and individuals who own more than one house property without any capital gains income and have salary income. If you have long-term capital gains and you have paid Securities Transaction Tax, this form is for you.
4. ITR 3 – This form is for individuals or HUFs having income from proprietary business or profession. In short, Hindu Undivided Families or individuals who are ineligible for ITR 1, ITR 2, and  ITR 4, can file ITR 3. Anyone receiving interest, bonus, salary or commission from a partnership firm as business income must also file ITR 3.
5. ITR 4 – ITR 4 or Sugam is for all types of professions, businesses, HUFs and undertakings. You can file ITR-4 if your total income includes business or professional income u/s 44AD, 44ADA or 44AE, income from one house property, salary income, and income from other sources. However, you can not file this form if your income is more than Rs. 50 lakh in a financial year.
6. ITR 4S – ITR-5 is for LLPs (Limited Liability Partnerships), firms, business trusts, Artificial Juridical Persons (AJP), Estate of deceased, BOIs (Body of Individuals), AOPs (Association of Persons), estates of insolvents and investment funds.
7. ITR 5 – Co-operative societies, firms, Artificial Juridical Persons, Associations of Persons, local authorities, and Bodies of Individuals are eligible to file their income taxes with this form.
8. ITR 6 – This form can be filed by any company only through online mode. Firms and organizations can use this form only if they are not claiming tax exemption under Section 11.
9. ITR 7 – This form can be used only by political parties, religious or charitable trusts, colleges, universities, etc. to claim tax exemption.

Who should file Income Tax Returns?

1. All individuals, up to the age of 59, whose total income for a financial year exceeds Rs 2.5 lakh. For senior citizens (aged 60-79), the limit increases to Rs. 3 lakh and for super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs. It is important to note that the income amount should be calculated before factoring in the deductions allowed under Sections 80C to 80U and other exemptions under section 10
2. All registered companies that generate income, regardless of whether they’ve made any profit or not through the year.
3. Those who wish to claim a refund on the excess tax deducted/income tax they’ve paid.
4. Individuals who have assets or financial interest entities that are located outside India.
5. Foreign companies that enjoy treaty benefits on transactions made in India.
6. NRIs who earn or accrue more than Rs. 2.5 lakh in India in a single financial year.

Process of ITR Filing

Step 1: Visit the official page of income tax e-filing. 

Step 2: Log in to your account using your PAN number and password. In case you do not have an account, you have to create a new account using the correct information. 

Step 3: Go to ‘File Income Tax Return’ from the ‘e-file’ tab. 

Step 4: Select the correct income category from the list. (individual, HUF, and so on). 

Step 5: Choose the correct ITR form and go ahead by entering your bank account details

Step 6: Check the preview of your income tax return by checking the prefilled form. You can make changes if required. 

Step 7: Confirm the form and take a printout. Send a hard copy to the Income Tax Department for verification. Alternatively, you can E-Verify your Income Tax Returns via Aadhaar OTP or prevalidated bank account.

List of Required Documents for ITR

• PAN CARD
• ADHAR CARD
• MOBILE NO
• EMAIL ID
• BANK STATEMENT (April to March)
• LAST YEAR ITR (if filed)
• ID-PASSWORD
• Form 16
• Capital Gain Statement
• Proof of Investment and Expenditure

FAQ