Income Tax Return (ITR) Filing

To know about all Income Tax Return Form click here

ITR-1 Form – For salaried taxpayers whose income does not exceeds Rs. 50 Lakhs. ITR-1 Sahaj Form is the most widely used form, which is used to file the Income Tax Return.

Usually, this return covers the following incomes:

• Salary Income
• Pension Income
• Income from One House Property
• Income from other sources excluding lottery, race horses, legal gambling etc.

ITR-2 Form

The following incomes are covered under ITR-2 Form:

• Income from Salary/ Pension
• Income from House Property (Income can be from more than 1 House Property)
• Income from Capital Gains/loss on sale of investments/property (Both Short Term and Long Term)
• Income from Other Sources (including winning from Lottery, bets on Race Horses and other legal means of gambling)
• Foreign Assets/Foreign Income
• Agricultural Income more than Rs 5000
• Resident not ordinarily resident and a Non-resident.

ITR-3 Form

Income Tax Return is prepared on ITR-3 when:

• an individual or an HUF is a partner in a firm AND
• where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm.

In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, the assessee shall use this form only; not Form ITR-2.

ITR-4 Form

The ITR-4 Form is the Income Tax Return form for those taxpayers, who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

ITR 4 is to be filed by the individuals/HUF/ partnership firm whose total income includes:

• Business income under section 44AD or 44AE
• Income from profession calculated under section 44ADA
• Salary/pension
• Income from One House Property (excluding the brought forward loss or loss to be carried forward cases under this head);
• Income from Other Sources (Excluding winning from lottery and income from horse races).

An Income Tax Return is the summarized form of the following details:

• Gross Total Income under 5 heads of Income
• Deductions under Chapter VI-A
• Total Income
• Advance tax already paid
• TDS
• Tax required to be paid/ Tax Refund

In the following cases filing of Income Tax Return is mandatory:-

1. Company and Firm
2. Other person having income exceeding maximum amount chargeable to tax (without giving effect to section 10(38), section 10B, section 10BA or chapter VI-A.
3. Persons holding beneficial interest in asset outside india including financial interest.

To know the tax rates of various type of assessee click here.

The due date for filing the Return of Income shall be as follows:

• 30th September of the Assessment Year for the following Assessee:
  1. A Company
  2. Persons who are required to Tax Audit under section 44AB
  3. A working partner of a firm whose accounts are required to audit under the Income Tax Act 1961.
• 30th November of the Assessment Year, in case the assessee is required to furnish a report under section 92E
• 31st July in case of any other assessee.

Every assesssee who is required to file income tax return shall file it before the due dates as mentioned above or extended due date, however in case income tax return is filed after the due date but before the end of assessment year, the assessee is liable to pay late filing fee u/s 234F amounting to Rs.5,000/- if return is filed before 31st December or Rs.10,000/- after December and before the end of assessment year. However, if the total income of assessee is below Rs.5,00,000 then the maximum penalty is Rs.1000/-. Apart from payment of late filing fee u/s 234F, penalty of Rs.5000/- may also be imposed by the assessing officer u/s 271F of the Act.

Further, if there is any tax liability of the assessee he shall be required to pay an interest @ 1% per month for delay in filing of return under section 234A of the Act.

Furthermore, if the assessee (other than company) has tax liability, after deduction of advance tax and TDS/TCS, exceeding Rs.3000 then there are provision of prosecution u/s 276CC of the Act. However, in case of company there is no condition of minimum tax liability and prosecution u/s 276CC of the Act can be launched in such cases.

Section 234F is a newly incorporated section which provides for the fees to be payable in case of default in furnishing the return of income. Accordingly, the fees shall be payable as follows:
If the return of income is furnished on or before the 31st December of the Assessment Year
= Amount of fees payable will be Rs. 5,000/-
In any other case= Rs. 10,000/-

However, if the total income does not exceed Rs. 5,00,000/-, then, the fees payable shall be Rs. 1,000/-.

Yes, the provisions of Section 139(5) of the Income Tax Act, 1961 contains the provisions regarding filing the revised return. Accordingly, if a person discovers any omission in the return filed under section 139(1), he shall furnish a revised return at any time:

• Before the end of Relevant Assessment Year
• Before the completion of the Assessment. Whichever is earlier.

The following details are required to be furnished along with the return of income:

• Income exempts from Tax
• Assets of prescribed nature and value
• Bank account details and credit cards held by the assessee.
• Expenditure exceeding the prescribed limits.