Income Tax Return
The Indian Government has framed income tax laws to impose a tax on the taxable income of all persons who are individuals, salaried employees, Hindu undivided families, LLP, companies, and local authorities.
Which ITR Form should you fill out?
ITR-1
This ITR form is also called Sahaj and it must be filled out only by the
residential individuals' taxpayers. There are certain conditions to fill out this
ITR form which are mentioned below.
If an individual does not have any income source from another country
or does not have any property outside of the country.
If an individual is receiving his income in the form of a pension or salary.
If the earned income in agriculture is less than Rs. 5000.
If an individualβs total income is not crossed Rs. 50 lakhs.
The individual should not be a director of any company.
If the individual is not having foreign assets or property.
ITR-2
ITR-2 Form can be used by the (HUF) Hindu undivided family or any individual
taxpayer. There are almost the same conditions to fill out the ITR-2 form as
the ITR-1 form. Details are given below.
There are minor differences in ITR-2 Form than ITR-1. The total income
of the individual taxpayers should be more than 50 lakhs when received
through the house property, pension, lottery, or any other activity.
If the individualβs income earned through agriculture is more than Rs.
5000. That individual is eligible to fill out ITR-2.
ITR-3
The newly ITR-3 form is for both an individual taxpayer and (HUF) Hindu
undivided family whose source of income is business and profession.
Following are the eligibility criteria.
When an individual earns income through profit, a commission
When you are the director of a company.
If Your income is through the partnership of any firm.
If any individual taxpayer made investments in the unlisted shares
during the financial year.
ITR-4
This ITR-4 is used by the individual, (HUF) Hindu undivided family or
partnership firms. ITR-4 is also named Sugam. Eligibility is mentioned below
to fill out the form ITR-4.
If any individual is getting income through the business as per the
income scheme under sections 44AD and 44AE.
When an individualβs income is through the profession as per the
presumptive income scheme under section 44AD.
If the income is from house property but is not more than Rs.50 lakh.
When an individual wants to fetch his income on a presumptive basis
then it is taken as a presumptive scheme under the sections 44AD,
44AE, and 44ADA.
ITR-5
The ITR-5 form was introduced for the AOPs (Association of Person), LLPs
(Limited Liability Partnership), BOIs (Body of individuals), AJP ( Artificial
Juridical Person), Investment funds, and Business trust, and local authorities.
As per the reference in section 2(31)(vii), this form is for the person who
belongs to a firm, AOP, BOI, LLP, artificial juridical person, business trust and
investment fund, or local authority. ITR-5 should not be used by the person
who has to file the income return under sections 139(4A), 139(4B), 139(4C),
and 139(4D).
ITR-7
Those AOPs (Association of Person), LLPs (Limited Liability Partnership),
BOIs (Body of individuals), AJP ( Artificial Juridical Person), Firms and
Companies have to file income tax returns through the ITR-7, If their claim
exemption is under the following details.
1. If their income comes from the religious and charitable trust Under
section 139(4A).
2. If they are getting income from political sources under section 139 (4B).
3. If their income is through scientific research under section 139 (4C).
4. If they are having income from the university or colleges under section
139 (4D).
Taxpayers who are not claiming exemption under Section 139 (4A), Section
139 (4B), Section 139 (4C) or Section 139 (4D) are not eligible to provide ITR-
7 form for Income Tax Return.
Who needs to file ITR?
A registered firm or company with yearly income needs to file income
tax returns. Though they have not gained any profit yet have to file the
ITR.
Any person who possesses an asset outside of the country or any profit
gained property in foreign, that person must file an income tax return.
All those NRI or non-resident Indians who earned income is more than
the basic exemption limit, are eligible to file ITR.
Any individual whose yearly income is more than 2.5 lakh basic
exemption limit.
What are the required documents to file ITR?
Before filing Your income tax return, it is important to know about the essential
documents required for the filing process. We have mentioned below all the
important documents for filing the ITR. You should have a bank saving
account passbook, PAN card, Aadhaar card, and salary slip.
Form-16
Form-16 is used as proof of filing income tax returns by the employer to the
government. The form-16 is an income tax form for the companies, firms, and
unorganized corporations to give their employees details about the deducted
tax. This form contains all the details like net salary, HRA and LTA
exemptions, gross taxable salary, tax-saving deductions, salary TDS, and any
loss that happened with the employee.
Form-26AS
Form-26AS is a compact annual tax statement that contains information about
tax deducted or collected at the source and TDS on various salaries, interest,
self-assessment, and advances tax. The Budget for 2020-21 had declared the
modified Form 26AS providing a more comprehensive profile of the taxpayer
going further the details of tax organized and deducted at source.
Form-16A
This Form consists of all the details about TDS deducted on interest received
from deposits like FD or RD bank deposits. This is basically a certificate that
every employer provides his/her employee. Form-16 contains all the sources
of income of the individuals.
Form-16B
Form-16B is a type of certification that contains the details of the total TDS
amount deducted on account of the property sale. In simple words, This is a
TDS certificate for all TDS deducted upon a property sale.
Form-16C
Form 16C contains information about the deductor and deductee such as PAN
number, certificate number, the financial year of deduction, unique
acknowledgment number, the rent paid, date, and amount of tax deducted and
deposited.
How to file ITR online?
Before proceeding further, We should make sure that we have all these valid
documents which are PAN, Aadhaar, Bank account details, investment
details, and Form-16.
Following are the steps -
First login to the myitronline account. If you have the form-16 then click
on the βupload form-16 PDFβ but in case you do not have this form in
PDF format then press on continue.
Fill out personal details such as PAN, date of birth, and Name as
mentioned on PAN. Name of the father, and address.
Fill out the details about your salary, profession, or employer type and
name along with TDS information.
Enter the details of investment for claiming the deduction.
Fill in the details of taxes paid. You can fill in these details by uploading
the form-26AS along with the self-assessment tax paid in a relevant
financial year.
Feed the details of your bank account and go ahead for e-filing and click
on proceed to e-filing. If you notice any option of βRefundβ or βNo Tax
Dueβ, Click on proceed to e-Filing. You will get a declaration number on
the next screen.
Lastly, Click on the e-verify income tax return when your return is filed.
How to Check Your ITR Status Online?
When you are done submitting your tax return, you can check the status of it
online easily on the ITR official website of the Government of India. There are
two methods to check the status online. These are given below-
With login details -
You have to go to the website of e-filing income tax return
and with the details such as username and password. Click on the tab βView
returns or forms''. Now Choose the assessment year as well as income tax
returns from the given menu. You will get the result whether your ITR was
verified or not.
Without login details -
You have to go to the website of e-filing income tax
return, you will see an ITR status link on the left side of the corner, Click on
that ITR status link displayed on the website. You will be redirected to a page
where you need to fill out details of your PAN number, ITR declaration
number, and captcha code. You will see tax filing status once you have fed
the data in.
Frequently asked questions
Those registered taxpayers whose net income is below the exemption limit of
Rs.2 .5 lakh, don't have to file ITR by using the ITR-1 form.
The minimum income to file ITR should be up to 2.5 lakh as per the financial
year of 2021-22.
Yes. You have to file ITR even though your income is less than 5 lakh.
Yes. Salaried employees whose income is up to 5 lakh must file an income tax
return with the ITR-1 form.
In case you are unable to file ITR. It can lead to penalties or imprisonment of 3
months to 2 years.
No. As per the rule of income tax, It is not compulsory to file income tax returns for
government employees if their income is less than the taxable limit.
You can download ITR forms from the website of Income Tax.
No. (HUF) or Hindu undivided family can not fill out the form-15. This form is
not functional for HUF.
There are two simple methods to link your PAN to Aadhaar. You can do it by
e-filing login on the income tax portal.
You can apply for the PAN card through the online method. This procedure is
easy and convenient. You just need to fill out the valid information and submit
the required documents.
https://tin.tin.nsdl.com/pantan/StatusTrack.html. You can visit this website to
submit the application online.
Any individual can check their ITR status on the following website. You will
need your PAN details and ITR declaration number.
https://www.incometaxindiaefiling.gov.in/e-FilingGS/Services/ITRStatusLink.html?lang=eng
The late fee for filing ITR is Rs. 5000 with the due date before the 31st of
December 2020. However, the late fee for return filing is Rs. 1000 which
should not exceed more than this if the net income of the individual is below
the Rs.5 lakh.
Yes. you have to file ITR even though the loss of business or interest is paid
on the home loan. Make sure to file ITR before the last date.
Krishna Gopal Varshney
βKrishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline
is
amongst the top emerging startups of Asia and authorized ERI by the Income Tax
Department. A dedicated and tireless Expert Service Provider for the clients
seeking
tax filing assistance and all other essential requirements associated with
Business/Professional establishment. Connect to us and let us give the Best
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