Income Tax Return

Income Tax Returns

Income Tax Returns or ITR is a form used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. It is mandatory for individuals who earn a certain amount of money have to File IT Returns. Firms or companies, Hindu Undivided Families (HUFs), and self-employed or salaried individuals must file ITR to the Income Tax Department of India.

What is ITR filing?

ITR filing is the process by which taxpayer has to file a report of his total income earned on financial year. Through Income Tax Department official portal individual can complete their filing of returns. It has notified with seven various forms – ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Why ITR should be filed?

It is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:

  • Individuals who fall within the respective tax slabs.
  • If it’s a Company or Firm, irrespective of the profit or loss made in a financial year.
  • If a tax refund needs to be claimed.
  • If a loss under a head of income needs to be carried forward.
  • If being a resident of India, one has an asset or financial interest in any entity located outside India.
  • If being a resident of India, one is a signing authority in a foreign account.
  • If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
  • If one is applying for a loan or a visa.
  • If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.

ITR-1

Applicability

Salary / Pension One House Property Other sources (Interest, Family Pension, Dividend etc) Agricultural Income up to Rs. 5,000.

Non-Applicability

This ITR-1 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case tax has been deducted u/s 194N is a person in whose case payment or deduction of tax has been deferred on ESOP who has any brought forward loss or loss to be carried forward under any head of income Income more than Rs. 50 Lacs Agriculture Income more than Rs. 5,000.

Documents Required

  • PAN & Aadhaar card copy
  • Form 16 issued by employer in case salary income is earned Month wise
  • salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C, if applicable
  • Form 26AS Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker Other Source Income Details

ITR-2

Applicability

Individual and Hindu Undivided Family (HUF) Not having Income under the head Profits and Gains of Business or Profession Who is not eligible for filing ITR-1

Non-Applicability

Individual and Hindu Undivided Family (HUF) Having income from B/P Being a partner in partnership firm having income from B/P

Documents Required

  • PAN & Aadhaar card copy
  • Form 16 issued by employer in case salary income is earned
  • Month wise salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Copy of the previous year’s tax return Other TDS Certificates
  • Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank
  • In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker
  • Balance Sheet, P & L Account, Account Statements, and other Audit reports wherever they are applicable
  • Other Source Income Details.

ITR-3

Applicability

  • Individual & Hindu Undivided Family (HUF)  Having Income under the head Profits or Gains of Business or Profession  Who is not eligible for filing ITR-1, 2 or 4.

Non-Applicability

This ITR-1 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case tax has been deducted u/s 194N is a person in whose case payment or deduction of tax has been deferred on ESOP who has any brought forward loss or loss to be carried forward under any head of income Income more than Rs. 50 Lacs Agriculture Income more than Rs. 5,000.

Documents RequiredPAN & Aadhaar card copy

  • Form 16 issued by employer in case salary income is earned Month wise
  • salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C, if applicable
  • Form 26AS Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker
  • Other SourceIncome Details.
  • Interest Statement issued by Banks for Fixed Deposit
  • Interest Income In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker
    •  

    Chapter VIA Investment details for claiming deduction as follows: 

    • Receipt of children’s school tuition fees
    • Life insurance premium receipt
    • Stamp-duty and registration charges
    • Principal repayment on your home loan
    • Equity Linked Savings Scheme/Mutual funds investment
    • Mediclaim payment receipt etc
    • Profit and loss statement and Balancesheet for the previous year
    • Details of Chartered Accountant conducting Tax audit in case the person is covered under section 44AB
    • Copies of books of accounts required to be maintained as per section 44AB i.e.
    • Cash book, Journal book, Sales and Purchase register in case of business and Receipt book in case of profession GSTIN No. and GST returns
    • Other Source Income Details.

ITR-4

Applicability

  • Individual, HUF & Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business and Profession, and “Income from any of the following sources: “
  •  One House Property
  •  Other sources (Interest, Family Pension, Dividend etc)
  •  Agricultural Income up to ₹ 5,000
  •  Income from Business / Profession computed on presumptive basis u/s 44AD / 44ADA / 44AE

Non-Applicability

This ITR-4 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case payment or deduction of tax has been deferred on ESOP

Documents Required

  • PAN & Aadhaar card copy
  • Form 16 issued by employer in case salary income is earned Month wise
  • salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C, if applicable
  • Form 26AS Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker Other Source Income Details.

ITR-5

Applicability

  • Firm
  •  Limited Liability Partnership (LLP)
  •  Association of Persons (AOP)
  •  Body of Individuals (BOI)
  •  Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
  •  Local Authority referred to in clause (vi) of Section 2(31)
  •  Representative Assessee referred to in Section 160(1)(iii) or (iv)
  •  Cooperative Society
  •  Society Registered under Societies Registration Act, 1860 or under any other law of any State
  •  Trust other than Trusts eligible to file Form ITR-7
  •  Estate of Deceased Person
  •  Estate of an Insolvent
  •  Business Trust referred to in Section 139(4E) and Investment Fund referred to in Section 139(4F).
Non-Applicability

This ITR-1 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case tax has been deducted u/s 194N is a person in whose case payment or deduction of tax has been deferred on ESOP who has any brought forward loss or loss to be carried forward under any head of income Income more than Rs. 50 Lacs Agriculture Income more than Rs. 5,000.

Documents Required

  • PAN & Aadhaar card copy
  • Partnership Deed/Agreement
  • Profit and loss statement and Balancesheet for the previous year Details of Chartered Accountant conducting Tax audit in case the person is covered under section 44AB 
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Copies of books of accounts required to be maintained as per section 44AB i.e. Cash book, Journal book, Sales and Purchase register in case of business and Receipt book in case of profession GSTIN No. and GST returns
  • Details of recognition as a start-up by DPIIT 
  • Details of declaration filed in Form-2 Bifurcation of donations into cash and non-cash mode of payment
  • Other Source Income Details.

ITR-6

Applicability

  • “Applicable for Companies other than those claiming exemption u/s 11. “, ” Company includes: “
  •  Indian Company
  •  ” Body corporate incorporated by or under the laws of country outside India “
  •  Any institution, association or body, whether incorporated or not and whether Indian or Non-Indian which is declared by general or special order of the Board, to be Company, etc.
  •  

Non-Applicability

This ITR-6 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case tax has been deducted u/s 194N is a person in whose case payment or deduction of tax has been deferred on ESOP who has any brought forward loss or loss to be carried forward under any head of income Income more than Rs. 50 Lacs Agriculture Income more than Rs. 5,000

Documents Required

  • PAN & Aadhaar card copy
  • Form 16 issued by employer in case salary income is earned Month wise
  • salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C, if applicable
  • Form 26AS Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker Other Source Income Details.

ITR-7

Applicability

Applicable for Persons including Companies who are required to furnish returns u/s 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D) 139(4A) – Income derived from Property held under Trust wholly / in part for charitable or religious purposes 139(4B) – Chief Executive Officer of every Political Party 139(4C) – Various entities like Research Association, News Agency, etc mentioned in Section 10 139(4D) – University, College or other Institution referred in Section 35

Non-Applicability

This ITR-7 cannot be used by a person who: is a Director in a company has held any unlisted equity shares at any time during the previous year has any asset (including financial interest in any entity) located outside India has signing authority in any account located outside India has income from any source outside India is a person in whose case tax has been deducted u/s 194N is a person in whose case payment or deduction of tax has been deferred on ESOP who has any brought forward loss or loss to be carried forward under any head of income Income more than Rs. 50 Lacs Agriculture Income more than Rs. 5,000.

Documents Required

  • PAN & Aadhaar card copy
  • Form 16 issued by employer in case salary income is earned Month wise
  • salary slip where form 16 is not been issued by the employer in case salary income is earned
  • Rent receipts in case of rental income and rental agreement
  • Bank statements for the financial year for interest on savings account
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C, if applicable
  • Form 26AS Tax saving investment proof like LIC Premium receipts, PPF, NPS, ELSS/Mutual fund Receipts, FD/RD Statements, etc.
  • Deduction under the Section 80 D to 80 U like Mediclaim or other medical certificates & payment acknowledgements, etc.
  • Home Loan statement from the NBFC or the Bank In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker Other Source Income Details.