Income Tax Returns.pdf

Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department of India to file information about an individual’s income and taxes payable during that financial year. Information filed in an ITR should be applicable for a particular financial year between 1st April to 31st March of the next year.

1. Income Tax Returns​
Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department
of India to file information about an individual's income and taxes payable during that
financial year. Information filed in an ITR should be applicable for a particular financial year
between 1st April to 31st March of the next year.​
The Income Tax Department has prescribed 7 types of ITR forms, which are to be used by
taxpayers accordingly. These forms are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and the new
form, ITR-2S. The suitability of each form will depend on the nature and amount of income
and the type of taxpayer.​
Is Filing ITR necessary​
If you earn more than the limit that is exempted from being taxed by the Government, then
you are compulsorily required to file the tax return. Income Tax rules dictate that if you earn
more than the limit that is exempted from being taxed by the Government, you are
compulsorily required to file your tax return according to every year. Filing your ITR, post the
due date may attract a penalty and also become a deterrent in getting a loan or visa
approved in the future.​
The government has now made it mandatory for an individual to file income tax returns if
his/her total TDS/TCS during the financial year is Rs 25,000 or more even if the individual's
income is below the basic exemption limit. The minimum amount that an individual needs
to pay as income tax deduction at source (TDS) has been increased from Rs 10,000 to Rs
15,000.​
Types of ITR Forms​
1.ITR-1​
Also known as the Sahaj Form, this is an income tax return form that is to be filed by an
individual taxpayer. Any other assessee who is liable to pay tax is not eligible to avail of this
form for filing their returns. ​
2.ITR-2A​

2. The ITR-2A form is for people whose source of income is through salary. It is also used by
Hindu undivided families and individuals who earn additional income from multiple sources
such as capital gains, residential property sales and other investments.​
3.ITR-2​
ITR-2 Form is meant for individuals who earn income from salary or capital gains. This form
is useful to people whose source of income is from the sale of assets or property in India or
from any business venture.​
4.ITR-3​
The ITR-3 Form is useful for individual taxpayers or a Hindu Undivided Family, who solely
operate as partners in a firm but who do not conduct any business under the firm. This is
also applicable for individuals who do not earn any income from the business conducted by
the firm.​
5.ITR-4​
The ITR 4S is an income tax return form which can be used by an individual who conducts a
business or earns income through a profession. This form is applicable for all types of
businesses, undertaking or profession. Any individual with any profession can file their ITR
using this form.​
6.ITR-4S​
The ITR-4S form is applicable for an individual or HUF. It can be used by individuals or Hindu
Undivided Family with income based on a presumptive method of calculation. This form is
useful in special circumstances and applicable to businesses where any income earned is
based on a presumptive method of calculation.​
7.ITR-5​
ITR-5 forms are used by limited liability partnerships, artificial judicial persons and
associations of persons, among others.​
8.ITR-6​
The ITR-6 form is used by all companies. Organisations that claim tax exemption as per
Section 11 of the Act are those in which the income received is accumulated from the
property whose use is exclusively for religious and charitable purposes. This return can only
be filed online​
9.ITR-7​
Section 139(4A) - Under this section, returns can be filed by individuals who receive income
from any property that is held for the purpose of charity or religion in the form of a trust or
legal obligation​

3. Who is required to file an ITR?​
1.Individual taxpayers with an income of more than 2.5 lakhs per year are required to pay
tax at the time of filing the return. Senior citizen taxpayers of the age group 60 to 79 years
and super senior citizens(80 years and above) who are not able to claim exemptions
under section 91 for medical treatment, transport allowance etc. are exempt from paying
taxes.​
2.A registered company with yearly income, even if it has not made any profit during the
period. The profitability of a company is measured by the company’s ability to generate
revenue and make a profit.​
3.A person who has filed his tax returns and informed the government about his income, he
can claim a refund on surplus income tax or tax that was deducted from the annual
income.
4.An individual with an asset or other financial interest in a country different from their
residence.​
5.A company out of India is offering a treaty benefit to companies in the US for making
transactions within India.​
6.NRIs who earn above the basic yearly exemption limit of Rs 2.5lakh, will face a foreign tax
on income from capital gains exceeding Rs 2.5 lakh. This includes sale of property, equity
mutual funds and non-equity funds, shares and debentures and units of business trusts
that are headquartered in India.​
What are the documents required to file ITR​
1.Pan Card​
2.Aadhar card​
3.Form 16​
4.Form-16A/ Form-16B/ Form- 16C​
5.Bank Account details​
6.Form 26AS​
7.Home Loan Statement​
8.Tax saving instument​
9.Capital Gain Details​
10.Rental Income​

4. 11.Foreign income​
12.Divident Income​
How to file ITR online​
Step 1: Visit the e-filing website https://www.incometax.gov.in/iec/foportal​
Step 2: Register or Login to e-file your returns​
•
In case you have registered yourself on the portal earlier, click on the ‘Login’ Here’
button.​
•
In case you have not registered yourself on the portal, click on the ‘Register’ Yourself’
button.​
Step 3: Click on ‘Taxpayer’ and then enter the details of your PAN and click on
‘validate’. Next, click on ‘Continue’.​
Step 4: Provide details such as your name, address, gender, residential status, date of birth,
etc.​
Step 5: Provide your Email ID and registered mobile number.​
Step 6: Once the form has been filled up, click on ‘Continue’.​
Step 7: You will have to verify the details following which a 6-digit One Time Password (OTP)
will be sent to your registered mobile number and Email address.​
Step 8: Enter the OTP follow the instructions given to complete the registration process
successfully.​
Step 9: Once the OTP has been verified, a new window will open where you will have to
verify the details provided by you. In case any detail given is incorrect, you can change it,
following which another OTP will be sent to validate the change.​
Step 10: The final step will be set up a password and secure login message.​
Step 11: Click on ‘Register’ following which you will receive an acknowledgment message
stating that the registration process has been completed successfully.​
With the Income Tax Refund feature, the money that hasbeen paid will be refunded to that
particular individual by the Government. This means that, if there is any tax left over, then it
will be given back. It can be claimed under section 80C of Income Tax Act, 1961. The eligible
taxes include all kinds of investments made with post office deposits and bank fixed
deposits along with mutual funds and equity investments.​