Online income Tax Return Filing In India
Category

How to go about Income Tax Return Filing in India?

Corpbiz Corpbiz Advisors

As a taxpayer, there is always an apprehension when it comes to Income Tax Return filing. It is also obvious to feel that way since a portion of hard-earned money goes as tax. Therefore, it is necessary that you fill in your ITR without any mistakes and make use of all the provisions that reduce tax liability.

Income Tax is the primary source of revenue for any government. In India, a taxpayer has to fill in the ITR form when making payment of tax. ITR stands for Income Tax Return . It is a form that is filed online by a taxpayer for disclosing his/her income earned in a particular financial year and make the tax payment accordingly.

Income tax is filed through relevant ITR forms that vary depending upon the source of income and category of taxpayers. Department has notified seven forms which we have discussed in this blog henceforth. Multiple exemptions and deductions have also been provided to taxpayers by the Indian government to reduce the stress of tax liability.

As a taxpayer, there is always an apprehension when it comes to Online Income Tax Return filing in India. It is also obvious to feel that way since a portion of hard-earned money goes as tax. Therefore, it is necessary that you fill in your ITR without any mistakes and make use of all the provisions that reduce tax liability.

Let us understand Income Tax Return Filing in India in detail.

Applicability of Income Tax Return Filing

If following stated conditions apply to you, it is mandatory to file income tax in India:

  • If the gross annual turnover exceeds the prescribed limit:
  • INR 2.5 Lakhs for Individual below 60 years
  • INR 3 Lakhs for individuals of 60 to 80 years
  • INR 5 Lakhs for individuals with 80 years or above
  • In case the taxpayer has more than one source of income
  • If the taxpayer is willing to claim an income tax refund from the Income Tax Department
  • In case the taxpayer has invested or has income from investment made in foreign assets
  • In case an individual is applying for VISA, Loan or Bank finance
  • In case the taxpayer is a company, there is no prescribed limit for income. The company shall file income tax irrespective it incurred profit or loss.

Which ITR Form to use?

The following table will help you in better understanding about which type of Income Tax Return Filing Form applies to you:

Category of ITR Form

 

Applicability of the particular form

ITR-1 also called SAHAJ
  • A resident individual with income less than INR 50 Lakhs
  • Source of such income shall be:
  • Salary
  • Pension
  • Other sources
  • One House Property

 

ITR-2
  • A resident individual with income exceeding INR 50 Lakhs
  • Income from capital gains
  • Income from more than one house property
  • Income from foreign asset or investment in foreign asset
  • Directorship in any company
  • In case individual hold equity shares of unlisted entity

 

ITR-3
  • Income from business or profession
  • The income of partners from the partnership firm
  • Presumptive income exceeding INR 50 Lakhs

 

ITR-4 also known as SUGAM form
  • Presumptive income from:
  • Salary
  • Pension
  • Other sources
  • One house property
  • Total income exceeds INR 50 Lakhs

 

ITR-5
  • Applicable on:
  • LLP
  • Association of persons
  • Partnership firms
  • Body of individuals

 

ITR-6

It applies to every company that doesn't claim an exemption under section 11. Section 11 exempts the full income derived from the property, which is held by the charitable or religious trust.

 

ITR-7
  • Income Tax return by companies or persons having income related to:
  • Trust income
  • Income from dealing with political parties
  • Scientific research
  • College or university income

 

Due dates for Income Tax Return Filing

Since the income tax department usually extends the due date of Income Tax Filing, it changes for every financial year. For instance, the due date for ITR filing for an individual in the financial year 2018-19 was 31st July 2019, but it was extended to 31st August. The dates for Financial Year 2019-20 may or may not be extended.

Here is the list of due dates for relevant Income Tax Return Filing for the previous financial year 2018-19:

  • Individual: 31st August 2019
  • BOIs (Body of Individuals): 31st August 2019
  • HUF: 31st august 2019
  • Association of Persons: 31st august 2019
  • A business that requires audit: 30th September 2019 which was extended to 31st October 2019

Income Tax Return Filing Process

Even though an individual can file the income tax return himself, it is advisable to do the same under the scrutiny of experts to avoid chances of error.

The steps for filing income tax return are as follows:

  • Visit the official website of ITR and proceed further by login into the account
  • Use the login credential such as PAN as user-id and password. In case you are not registered on the portal, first, register yourself to file income tax
  • Fill the applicable and mandatory details required in ITR form
  • E-verify the return through various options available such as:
  • Aadhar OTP
  • EVC using bank details
  • EVC using DEMAT account details
  • File the ITR form by clicking "Submit" and download ITR-V an acknowledgement for Income Tax Filed

Confused about ITR filing? Let us help you!

Reach out to our team of professionals and get all your income tax related queries solved. We have years of experience in tax-related subjects and provide a bundle of services to their clients, whether it is individual, company, firm or any other legal structure. Corpbiz 

 

Invite Friend to Read
Related Articles
Write a Comment

Home

Profile

Bloggers

Write

Blogs