Income Tax Return Filing
Deliverables - Timeline
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Deliverables
ITR Copy
Income Tax Acknowledgment
ITR Computation
Copy of challan if any payment is made
Timeline
2 Days
(from receipt of all documents)
What is ITR?
Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable, to the income tax department.
Why Should You File ITR?
1. If you want to claim an income tax refund from the department.
2. If you have earned from or have invested in foreign assets during the FY.
3. If you wish to apply for a visa or a loan.
4. If the taxpayer is a company or a firm, irrespective of profit or loss.
5. If you have a loss from business/profession or under capital gains head, you will not be allowed to carry them forward to the next years unless you file the return before the due date.
When is it Mandatory to File Income Tax Returns (ITR) in India?
If your gross total income is more than the basic exemption limit-
Basic Exemption Limit under the old tax regime is as follows -
Irrespective of age, basic exemption limit under the new tax regime is Rs.3 Lakh.
If your income is below the basic exemption limit, you will still be required to file your tax return if you meet any of these conditions:
1. Deposited more than Rs 1 crore in 'current' bank account: You have to mandatorily file a tax return if you have deposited a total of Rs. 1 crore or more in one or more current accounts with a bank. However, no such requirement has been specified for deposits made in the post office current account.
2. Deposited more than Rs 50 lakh in 'savings' bank account: You have to mandatorily file a tax return if you have deposited a total amount of Rs 50 lakh or more in one or more of your savings bank accounts.
3. Spent more than Rs 2 lakh on foreign travel: You have to mandatorily file a tax return if you have incurred a total expenditure of more than Rs 2 lakh on foreign travel whether for yourself or any other person.
4. Electricity expenditure is more than Rs 1 lakh: You have to mandatorily file a tax return if you have incurred more than Rs.1 lakh towards electricity consumption during the previous year.
5. TDS or TCS is more than Rs 25,000: If the tax deducted at source (TDS)/ tax collected at source (TCS) exceeds Rs 25,000 in the previous year. In the case of a senior citizen (above 60 years), this limit is Rs 50,000.
6. Business turnover is more than Rs 60 lakh: In case you are a businessman and your total sales, turnover, or gross receipt is more than Rs 60 lakh during the previous year, then you have to mandatorily file a tax return.
7. Professional income is more than Rs 10 lakh: You have to mandatorily file a tax return if you are engaged in a profession and your gross receipts are more than Rs 10 lakh during the previous year.
Who are Exempted from Filing Income Tax Returns?
Central government have the power to exempt specified class or classes of persons from filing income tax returns in addition to the existing exempt persons like individuals having total income less than the basic tax expedition limit, non-residents not having income accruing or arising from India etc.
However, currently, there are no such exemptions that the central government has notified in this regard.
Here’s a detailed explanation of the different types of ITR forms:
ITR-1 OR SAHAJ
"This Return Form is for a resident individual whose total income for the AY 2024-25 includes:
Income from Salary/ Pension.
Income from One House Property (excluding cases where loss is brought forward from previous years).
Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
Agricultural income up to Rs 5000.
ITR-2
ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2024-25 includes
1.Income from Salary/Pension
2. Income from House Property
3. Income from Other Sources (including Winnings from Lottery and Income from Race Horses)
4. If you are an Individual Director in a company
5. If you have had investments in unlisted equity shares at any time during the financial year
6. Being a resident not ordinarily resident (RNOR) and non-resident
7. Income from Capital Gains
8. Having any foreign income
9. Agricultural income more than Rs 5,000
10. Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
11. If tax has been deducted under Section 194N
12. If in case payment or deduction of tax has been deferred on ESOP
13. If you have any brought forward loss or loss needs to be carried forward under any income head
ITR-3
The current ITR-3 Form is to be used by an individual or a Hindu Undivided Family who have income from a proprietary business or is carrying on a profession. The persons having income from the following sources are eligible to file ITR-3:
1. Carrying on a business or profession not opting for presumptive income
2. Carrying on a business or profession not opting for presumptive income
3. Carrying on a business or profession who is required to maintain the books of accounts and/or required to get them audited.
4. If you have had investments in unlisted equity shares at any time during the financial year
5. The return may include income from House property, Salary/Pension and Income from other sources
6. Income of a person as a partner in the firm
ITR 4 or Sugam
The current ITR-4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income includes:
Business income according to the presumptive income scheme under section 44AD or 44AE
Professional income according to presumptive income scheme under section 44ADA
Income from salary or pension up to Rs 50 lakh
Income from one house property, not more than Rs 50 lakh (excluding the amount of brought forward loss or loss to be carried forward)
Income from other sources having income not more than Rs 50 Lakh (excluding income from lottery and race-horses )
ITR-5
ITR-5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.
ITR-6
For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.
ITR-7
For persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
1. Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
2. Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
3. Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish a return of income or loss under any other provision of this section.
4. Return under section 139(4E) must be filed by every business trust which is not required to furnish a return of income or loss under any other provisions of this section.
5. Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish a return of income or loss under any other provisions of this section.
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FAQs
The presumptive taxation scheme is designed to give relief to small taxpayers from the burden of maintaining books of accounts with a turnover not exceeding Rs.2 crore. Under this scheme, the taxable income is calculated at a prescribed rate on the total turnover.
