Income Tax Return (ITR)
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Income Tax Return (ITR)
The Income Tax Return (ITR) is a document which must be submitted to the Income Tax Department of India. It contains information about a person’s earnings and the taxes that must be paid on those earnings throughout the year. The information in an ITR must be for a specific financial year, which begins on April 1st and ends on March 31st of the following year.
FAQ's - Frequently Asked Questions
Total 7 Types of ITR are available in the India which are as follows :
ITR Form -1 , ITR Form -2 , ITR Form -3 , ITR Form -4 ,ITR Form -5 , ITR Form -6 , ITR Form -7.
The ITR-1 form is a required Income Tax Return form for Indian nationals submitting tax returns to the Income Tax Department.
Individuals who are eligible for ITR-1 SAHAJ (Hindi for ‘simple’)
Individuals who received their income solely through the following methods for a financial year are qualified to fill out the ITR-1 SAHAJ form.
Through a salary or a pension through a single-family home (except in case of losses brought forward from preceding years)
Apart from the lottery, racehorses, and legal gambling, there are other ways to make money. Other sources include interest on FDs, spousal pensions, and so on.
In the case of clubbed Income Tax Returns, where a spouse or minor is included in the tax returns, this can only be done if their income is also confined to the above-mentioned parameters.
The ITR-2 Form is a crucial Income Tax Return form that Indian nationals and non-residents alike use to file their tax returns with the Income Tax Department of India. Citizens are required to file their tax returns with the Income Tax Department at the end of each financial year under the Income Tax Act, 1961, and the Income Tax Rules, 1962, and this form is part of the filing process as prescribed by the Government of India.
Every year, the deadline for filing a return with the Income Tax Department of India is July 31. This is only susceptible to change if the Income Tax Department or the Indian Ministry of Finance issues a directive to that effect.
Assessees have four months to prepare their Income Tax Returns because the Financial Year ends on March 31 every year.
Individuals and Hindu Undivided Families who are enrolled as partners in a firm must fill out the ITR Form-3 . This form does not applicable to people who are sole proprietors of a business, according to Rule 12 of the Income Tax Rules, 1962. It is mostly for business purposes, including partnership agreements. Professionals can use it as well, but it must be done in collaboration.
Individuals and Hindu Undivided Families who seek to disclose their income from a business or profession under the Presumptive Income Scheme of Income Tax under Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act should use the ITR-4 Form.
The Internal Revenue Service (IRS) has launched many forms to make ITR filing easier and more convenient. It’s critical that you understand which form applies to your source of income. As a result, you must file the form before the Income Tax Department’s deadline for filing returns. ITR 5 is one such form that is tailored to the needs of a certain group of taxpayers. Some critical aspects about ITR 5 filing are discussed ahead.
Form 5 of the ITR has a specific structure. Part A and Part B of the ITR 5 Form are separated into two sections.
Companies that do not claim any exemption under section 11 of the Income Tax Act of 1961 must use the ITR 6 form. ITR 6 is also an annexure-free income tax return. As a result, you must attach any documents while filing your income tax return. On the income tax department’s e-filing platform, you submit ITR 6 electronically. You must also supply the details of the audit of the books of accounts, in addition to the profit and loss, deductions, balance sheet, and other information. Furthermore, only the digital signature of the approved signatory can be used to validate ITR 6.
Companies that serve the income from properties that are used for charitable or religious purposes file ITR 7 Forms. This category includes properties that are held in part or entirely by trusts or legal obligations.