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Income Tax Return

What is ITR

ITR is a form in which taxpayers file information about their earned income during assessment year and income tax payable to income tax department.

There are 7 kinds of ITR forms which are notified by Income Tax Department i.e., ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7. Tax payer has to file the ITR before the specifies due date. Various ITR Forms depend on the sources of income of taxpayer and amount of income earned and category of taxpayer.

Reasons for filing of ITR

If your gross annual income is more than the basic exemption limit mentioned below:         

Particulars

Amount

For individuals below 60 years

Rs 2.5 Lakh

For individuals above 60 years but below 80 years

Rs 3.0 Lakh

For individuals above 80 years

Rs 5.0 Lakh

 

 If you want to claim the refund of your additional income tax from department.

If you have earned income or invested in foreign assets during the FY.

If you want to apply for visa or loan than ITR should be filed for verification purpose.

If a taxpayer is company or a firm whether it has profit or loss during FY.

If your income is below exemption limit, but you fulfil the one of the below conditions then you have to file ITR which is mandatory:

  • If you have deposited aggregate amount of more than Rs 1 crore in one or more current accounts.
  • Have incurred an expense of Rs 2 Lac on foreign travel for self or another person.
  •  Have incurred an expense of Rs 1Lac on electricity consumption bill.

Different Types of ITR Forms:

There are seven kinds ITR forms based on source of income and category of taxpayer

1.     ITR -1 Sahaj:

ITR -1 form is used by the taxpayer who is an Indian resident whose income does not exceed Rs.50 Lacs and income is coming from:

  • Income from Salary/ Pension; or
  • Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
  • Agricultural income up to Rs.5000.

2.     ITR – 2

ITR – 2 form is used by an individual or Hindu Undivided family (HUF) whether resident or not, who is not eligible for ITR -1 and whose income is not under the head of income from business or profession and includes following types of income:

  • Salary /Pension (more than 50 lakh).
  • Capital gains.
  •  Income from more than 1 house property.
  • Having foreign income or investment.

If assessee is not falling under above criteria, but if he is holding position of a director in a company or holding any unlisted equity shares in the company then he shall required to file ITR 2.

3.     ITR – 3

ITR – 3 form is used by an individual or HUF whose income is coming under the head of business or profession and who is not eligible for ITR – 1, ITR – 2 and ITR – 4. Following persons are required to file ITR-3:

  • Each type of Income in ITR – 2/ITR-1
  • Income from Business/profession
  • Assessee is being a partner of firm.
  • Presumptive income >50 lacs/2 crores.

4.     ITR - 4 (Sugam)

ITR 4 applies to individuals and HUFs, Partnership firms (other than LLPs), who are residents and whose total income includes:

  • Business income according to the presumptive income scheme under section 44AD or 44AE.
  • Professional income according to presumptive income scheme under section 44ADA.
  • Income from salary or pension up to Rs.50 lakh.
  • Income from one house property, not more than Rs.50 lakh (excluding the amount of brought forward loss or loss to be carried forward).
  • Income from other sources having income not more than Rs.50 Lakh (excluding income from lottery and race-horses ).

5.     ITR – 5

ITR – 5 form is applicable to below assessees

  • Firms
  • LLPs (Limited Liability Partnerships)
  • AOPs (Association of Persons)
  • BOIs (Body of Individuals)
  • AJP (Artificial Juridical Person)

6.     ITR – 6

ITR – 6 form is used by firms not claiming exemption under Section 11(Income from property held for charitable and religious purposes).

7.     ITR – 7

ITR – 7 form is used by companies under section 139(4A) 139(4B) 139(4C) 139(4D).

  • Return under section 139(4A) is required to filled by person who receive income from property held under trust or other   charitable and religious purposes.
  • Return under section 139(4B) is required to filled by political party if total income without giving effect to provisions under              section  139 A exceeds maximum amount which is not charged under income tax.
  • Return under section 139(4C) is to be filled by scientific research association, news agency, association or institution under        section 10 (23A), fund or institution or university or other educational institution, hospital or other medical institution.
  • Return under section 139(4D) is to be filled by every college, Institution or university which is not required to furnish the return of income or loss under this provision.

How to file ITR

Before filing the ITR you will be requiring the following documents

  • Aadhar card
  • PAN card
  • Bank Account details
  • Investment details
  • Form 16

For filing of ITR you should have been registered in e-filing portal. If you have not registered on e-filling portal then you have to follow these below steps:

  1.  Visit the income tax website https://www.incometax.gov.in/iec/foportal
  2. Click on register yourself button to get registered in portal for filing ITR
  3. Click on taxpayer and enter the details of your PAN card and click on validate and continue.
  4. Provide your personal details such as your name, gender , address and date of birth
  5. Provide the email id and registered mobile number
  6. Click on continue when the form is completed
  7. You will have to verify the details by entering the 6-digit OTP sent to your registered mobile number and email id
  8. Once OTP is verified the you have to again check the details provided by you, details can be changed by you if details are not             correct then you have to again verify with OTP
  9. Final step will set up a password and secured login message
  10. Click on register following which you will receive acknowledgement message regarding completion of registration process.

Steps on How to file ITR:

  1. Visit the income tax e filing website and click on login button
  2. Enter the credentials for login and to start the e- filing process
  3. After successful login click on e file tab then click file income tax return
  4. Select the assessment year for which you want to file your income tax return and click on continue
  5. Please select the mode of filing return whether you want to file return online or offline
  6. Choose whether you want to file your income tax as an individual or Hindu Undivided Family (HUF)
  7. You have to choose the ITR form you want to file your return. There are various kind of ITR forms according to source of             income and category of taxpayer
  8. You have to click the reason for filing the ITR whether your income is above the basic assumption limit or you are fulfilling any         one of condition under section 139 (1)
  9. Fill details of your bank account, if you have already given bank details than pre validate the details.
  10. You will be directed to page where details will be prefilled which you have to heck whether provided details are correct or not           and check the summary and validate it
  11. The final step is to Verify your income tax return ,You can verify the return online or offline.

 

How to verify ITR

After completion of filing of ITR. We have to verify the ITR then the process is finally completed. You can verify your ITR through online or offline mode. In offline mode you have to take the print out of the filled return and post to Income tax department processing centre.

Online Verification of ITR 

You can verify your ITR through

  • Aadhar card
  • Net Banking
  • Through EVC

 

Income Tax Slabs for FY 20-21 in India

To file the ITR taxpayers can opt for any of 2 options whether they have to go with new regime of income tax or old regime of income tax. It should be declared by taxpayer

New Tax Regime

 

Income Tax Slab

New Regime Income Tax Slab Rates FY 2020-21
(Applicable for All Individuals & HUF)

Rs 0.0 – Rs 2.5 Lakhs

NIL

Rs 2.5 lakhs- Rs 3.00 Lakhs

5% (tax rebate u/s 87a is available)

Rs. 3.00 lakhs – Rs 5.00 Lakhs

Rs. 5.00 lakhs- Rs 7.5 Lakhs

10%

Rs 7.5 lakhs – Rs 10.00 Lakhs

15%

Rs 10.00 lakhs – Rs. 12.50 Lakhs

20%

Rs. 12.5 lakhs- Rs. 15.00 Lakhs

25%

> Rs. 15 Lakhs

30%

 

Old Tax Regime

Income tax slabs for Individual aged below 60 years & HUF

Income Tax Slab

Individuals Below The Age Of 60 Years – Income Tax Slabs

Up to Rs 2.5 lakhs

NIL

Rs. 2.5 lakh -Rs. 5Lakhs

5%

Rs 5 .00 lakh – Rs 10 lakhs

20%

> Rs 10.00 lakh

30%

 

 

 

 

 

 

 

 

 

Due Date for Income tax Return filing for the AY 2021-22:

                          Particulars

Due Date

Extended Due Date

Return of Income under section 139(1) assesses whose audit is not required.

31st July 2021

31st December 2021

Return of Income under section 139(1) assesses whose audit is required.

31st October 2021

15th February 2022

Return of Income under section 139(1) assesses who have undertaken international transactions.

3oth November 2021

28th February 2022

 

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