Filing of Income Tax Return

Purpose of Income Tax

Income Tax comes under India’s Direct Tax category that has all its provisions as well as deductions mentioned in Income Tax Act launched in 1961. As we know, it is the revenue collected by Government based on income.

As per Government Guidelines, earning people in India belonging to the given classifications, are considered to be taxpayers:

  • Individuals
  • Hindu Undivided Family (HUF)
  • Body of Individuals (BOI)
  • Association of Persons (AOP)
  • Local Authorities
  • Corporate Firms
  • Companies
  • All Artificial Juridical Persons


The taxpayers or anyone (regular or irregular) who is earning in India, has to provide details about the income and investments in various ITR forms that we’ll discuss later.

India’s law defines these five income heads as the main income sources:

  • Income from Salaries: Any employee receiving a salary from employer as mentioned in section 192 of Income Tax Act.
  • Income from Capital Gains: Money earned by selling capital assets, such as, buildings, lands, bonds, jewelleries, etc.
  • Income from House Property: Money earned by renting a house, space, etc.
  • Income (Profits) from Business: A fixed part of business’s profit as mentioned in section 30 and 43D of Income Tax Act
  • Income from other sources: Lottery, Interest, Dividend, Family Pension, Gifts, etc.


Individual (residents or NRIs), below 60 years has to pay Income Tax if the annual income exceeds INR 2.5 lakhs. A person above 60 years earning more than INR 2.5 lakhs should pay the tax as per Government’s guidelines.

For companies, a fixed part of their profit should be paid as Income Tax.



Types of Income Tax Return (ITR) Form

For anyone, with income either above or below the taxable threshold amount, there are various ITR forms of income declaration as mentioned below:-


  • ITR Form 1: Anyone receiving regular salary/pension/income from property/others (Total income upto 50 lakh)
  • ITR Form 2: Anyone in HUF with income does not come under Income (Profits) from Business income head ( total income above Rs 50 lakh)
  • ITR Form 3: Anyone in HUF with income under Income (Profits) from Business income head
  • ITR Form 4 (SUGAM): Also called SUGAM, for anyone in HUF/individuals opting for SUGAM taxation scheme as per section 44AD/44ADA/44AE. Anyone in HUF who are professionals/proprietors. ( Total income upto 50 lakh)
  • ITR Form 5: Anyone in LLP, BOIs, APIs, artificial judiciary persons, local authorities
  • ITR Form 6: Those companies claiming no exemptions as per section 11
  • ITR Form 7: Anyone filing returns as per section 139 (4A), 139 (4D), 139 (4C), 139 (4B)
  • ITR Form V: To acknowledge the Return Filing


 Essential Documents to File ITR

Applicant should be having these documents to furnish with the ITR form:

  1. Permanent Account Number (PAN)
  2. Adhaar No
  3. Bank Account Details
  4. Form 16/16A
  5. Investment Details


Benefits of Filing Income Tax Return

As you receive the benefits of earning, there are benefits of filing ITR on time, such as:

  • Easy Loan Processing
  • Fast processing of passport and foreign travel documents
  • Tax Refund Option
  • Easy Insurance Claim
  • Carry Forwarding of Losses
  • Priority in Government Tenders Applications


And more.....

So, be updated and take right suggestion for your help to file your ITR.


As part of the COVID-19 relief


Changed ITR Due Dates (FY 2019-20)

Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020 (Due to COVID-19)

Due Dates as Defined u/s 139(1) of IT Act

Due dates of ITR filings differ based on auditing or non-auditing cases of taxable income. Accordingly, two different ITR Filing Due Dates are given to the taxpayers under normal situation. They are:

  • July 31st:In every Assessment Year, this is the ITR filing deadline for those taxpayers who are not required to have audit performed on their Books of Account. The taxpayers include:
    • Salaried person/Employee
    • Self-employed person/Professional
    • Consultants
    • Freelancers

Changes Made in Due Dates u/s 139(1) of IT Act

For FY 2019-20, this due date is extended till 30th November, 2020.

  • September 30th:In every Assessment Year, this is the ITR filing deadline for those taxpayers whose Books of Account are required to be audited. The taxpayers include:
    • Company
    • Self-employed person/Professional
    • Working Partner employed in a firm whose Books of Accounts need to be audited
    • Consultants