INCOME TAX RETURNS
Income Tax returns are required to be filed if the gross total income exceeds the basic exemption limit. For the year ended 31st March 2019, the basic exemption is Rs. 2.5 lakhs for an ordinary individual, Rs. 3 lakhs for an individual over 60 years and Rs. 5 lakhs for an Individual above 80 years.
After collecting all the needed documents and verifying all the taxes that are deducted from the income, the total income chargeable to tax is computed. The word gross total income is not the same as the income on which your tax liability is calculated. Gross total income is the income calculated before any deduction under Sections like 80 C, 80 CCC, 80 CCD, 80D,80DD, 80DDB 80E, 80EE, 80G and 80 GGA, 80U and 80 TTA is availed.
In case you are required to file a return as discussed, the due date is July 31. The due date is applicable generally in the case of individual taxpayers. However in case you are carrying on a business and your accounts are required to be audited, the due date gets extended till 30th September. Even for the people who are working partners in partnership firms, whose accounts are audited, the due date is 30th September.
Income Tax Returns
The Income Tax Department has notified various ITR forms for different Taxpayers who are based on the source of Income of different taxpayers. This is done in order to create a simple tax structure in our country. Based on the source of Income, a taxpayer chooses ITR form and file his/her return. The return is required to be filed every year subsequent to the year of Income. Now the details of PAN and Aadhaar card is mandatorily required to be furnished with the department while filing the ITR return. There are various forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 which is required to be filed by the different Taxpayer. However, it is to be noted that it is not mandatory to file the return by all taxpayers, this is only the certain individual having threshold income more than as prescribed under the Income Tax Act who are required to submit the Income-tax return. The return must be filed before the due date in order to avoid late fees and penalties. Further, aforesaid forms are designed for different taxpayers and it shall be processed by the income tax department accordingly.
ITR FORM 1
ITR Form 1 is a small and simple form for individuals who are having Income upto Rs. 50 lakh through below sources of Income ie., from:
2. House Property
3. Income from Other Sources
ITR FORM 2
A Taxpayer who is deriving their Income from sources except for form “Profits and Gains from Business or Profession. Hence, one can say that Taxpayer who is earning Income from the following source is required to file ITR Form 2.
• From Salary or from Pension
• From any Foreign Assets
• From House Property
• From Capital Gains/loss which can be Short Term or Long Term
• Income from Other Sources
• From Agricultural if Income exceeding Rs 5000
• Resident not ordinarily resident and a Non-resident
• All Directors of any listed and unlisted companies
ITR FORM 3
A taxpayer who is deriving their Income from “Profits and Gains from Business or Profession. Hence, one can say that a Taxpayer who is earning Income from the following source is required to file ITR Form 3.
• From House Property, whether single or multiple.
• From any Foreign Assets.
• From Capital Gains/loss which can be Short Term or Long Term
• If the Taxpayer is a company or carrying out Business through a firm.
ITR FORM 4
ITR Form 4 is to be filed by individuals or HUFs or Partnership Firm whose total Income includes:
All business income computed in accordance with provisions of Sections 44AD and Section 44AE of the Income Tax Act.
All Income from any Profession computed in accordance with provisions of Sections 44ADA
Income from Salary or from pension but up to Rs 50 lakhs.
Income from One House Property.
Income from Other Sources
ITR FORM 5
The ITR FORM 5 is design for Taxpayer as shown below
• Limited Liability Partnerships(LLPs),
• AOPs & BOIs,
• Artificial Juridical Person,
• Cooperative society and Local authority, who do not file the return under section 139(4A), 139(4B), 139(4C), 139(4D)
ITR FORM 6
WHO IS ELIGIBLE TO FILE THE ITR FORM 6
As discussed above, every company which has not claimed any exemption as provided under Section 11 of the Income Tax Act, 1961 can file the ITR Form 6. Hence we can say that if you are a company and has not claimed exemption as provided under the provisions of the Act. It is interesting to notice that the ITR Form 6 do not have any annexure means it is an annexure less form. There is no requirement of any attachment while filling and filing the ITR Form 6.
ITR FORM 7
WHAT IS ITR FORM-7
The ITR Form-7 is to be filed by all taxpayers which includes a Company, any firms, AOP, and also other organizations that falls under the Section 139 (4A), Section 139 (4B), Section 139 (4C) and Section 139 (4D).
Section 139 (4A) of the Income Tax Act, 1961 provides for aforesaid Taxpayers which are getting their Income from any properties involved in religious or charitable purposes.
Section 139 (4B) of the Income Tax Act, 1961 provides for aforesaid Taxpayers which is a Political party. As we know that Political parties are exempted from any levy of tax as provided under Section 13A of the Income Tax Act, 1961 however, it is applicable only if Political party filed the Income tax return in ITR Form-7.
Section 139(4C) specifies following Taxpayers who required to file ITR Form-7.
• Any News Agency
• An Association involved in Scientific research
• All Institutions as categorized under Section 10(23b) of the Income Tax Act, 1961
• Any Associations / Institutions as mentioned under Section 10(23a) of the Income Tax Act, 1961 and
• Various Funds, Universities, Institutions, any educational institution, and medical institutions including a hospital
Section 139(4D) provides for educational institutions which are not covered above shall file ITR Form 7.
ONLINE/ELECTRONICALLY FILING OF ITR FORM 7:
The ITR Form 7 can be furnished online, for this one needs to login to the account which shall be prepared on the website of Income-tax department and shall be verified. Thereafter, an acknowledgment shall be send to the registered email id of the Taxpayer. The online return can be verified through Aadhaar OTP/EVC. The Acknowledge can also be sent physically through post at the below address:
Income Tax Department
Post Bag No. 1, Electronic City Office, Bengaluru, 560500, Karnataka.
Every year ITR Form 7 has to be filed on or before 31st July of the subsequent year. Thereafter, the late fee shall be levied. Here is a tabular representation of late fees for easy understanding::
Filing Date If Income is Below 5,00,000/- If Income is Above 5,00,000/-
31st July 2019 0 0
Between 1st August to 31st Dec 2019 1,000/- 5,000/-
Between 1st Jan 2020 to 31st March 2020 1,000/- 10,000/-
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