Income Tax Return (ITR) - ITR Filing
Income Tax Return (ITR) - ITR Filing
ITR Filing for Individuals
As per Section 139(1) of the income tax act, 1961, any individual earning more than Rs 2.5 lakhs and crosses this
specified exemption limit is liable to pay income tax return. It is mandatory for individuals to file income tax return if they are earning from the following sources –
Form ITR 1 or SAHAJ is used for filing tax return by taxpayers whose earnings are up to Rs 50 Lakhs.
Income from salary
Income from pension
Income from house property (except any case where loss has been brought forward)
Income from other sources
Agriculture income up to Rs 5000
Business Tax Return Filing
Filing of business tax return depends upon the type of business you are doing – whether it is Sole Proprietorship
Partnership Firm, Private Limited Company
or Limited Liability Partnership
(LLP). It is mandatory for businesses to file books of accounts, if they
meet any of the following conditions mentioned below –
As per Section 44AD and 44AE of the income tax act, Form ITR 4 is used by the businesses to file income tax return in case they opt for the presumptive income scheme.
If total income is more than Rs 1,20,000 or
If total sales, turnover or gross receipts exceeds Rs 10,00,000
TR Filing for Trusts
Any trust earning income of more than Rs 25 Lakhs and crosses this specified exemption limit set by the income
tax department is liable to pay income tax return. Following trusts are needed to file income tax return mandatorily
to the income tax department –
Form ITR 5 or ITR 7 is used by trusts to file income tax return. ITR 5 is filed when the income earned by trust is
more than the basic exemption limit whereas form ITR 7 (https://www.finacbooks.com/blog/itr-7-form) is used when
ITR is filed under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) mandatorily as per
income tax act.
Association or institution
Fund or institution
Mutual fund (https://www.finacbooks.com/mutual-fund/what-is-mutual-fund)
Investor protection fund
Core settlement guarantee fund
University or other educational institution
Body or authority or board or trust or commission
Venture capital company or venture capital fund
Infrastructure debt fund
ITR Filing for Partnership Firms
Form ITR 5 is used by the partners in a partnership firm (https://www.finacbooks.com/partnership-firm-registration)
to file income tax return. You must maintain all your business records and share the same with income tax
department, as and when required. The rate of income tax charged from a partnership firm is 30%. Partnership firms are also liable to pay 12% income tax surcharge in case their total income goes beyond Rs 1 Crores. Along with this, education cess and secondary higher education cess is also paid by the partnership firm.
NRI Tax Return Filing
NRI tax return filing is basically a tax return filed by the individual who is a citizen of India or a person of Indian origin but not a resident of India. It is filed by NRI’s living in other countries of the world. NRI’s should file the return or not depends upon its taxable income which they earn in India.
Before filing NRI return, NRI’s identify their residency status to know whether they are eligible for paying income tax or not. For example – An NRI earning from a house property in India as a landlord must pay income tax to the tax department, if he or she is earning rental income from property in India and the amount is also exceeding the exemption limit specified by the tax department. NRI needs to pay tax on the following types of income –
Any income which accrues or arises in India.
Any income received here in India
Any income which is deemed to accrue or arises in India
Any income which is deemed to be received here in India
Who should file income tax return?
The following persons can file income tax returns to the income tax department –
An individual has to mandatorily file income tax return in India in the following conditions –
An individual earning taxable income from salary or pension has to mandatorily submit their tax return to the
income tax department.
An individual earning income from house property, capital gains, FD, interest etc. has to mandatorily file tax
returns to the IT department.
1 If an individual gross total income is above Rs 2,50,000 (For ages less than 60 years), above Rs 3,00,000
(for ages between 60-80 years) and above Rs 5,00,000 (for ages 80 years and above) before availing
2 In case it is a company or a firm (irrespective of the P&L made in a financial year)
3 In case you need to claim a tax refund (https://www.finacbooks.com/efiling/tax-rebates-allowed-undersection-87a-eligibility)
4 In case you are Indian resident but your assets or financial interest lies outside India.
5 In case you are Indian resident but a signing authority in a foreign account too.
6 In case you are applying for a loan or visa.
7 In case individual receives income from property held under a charitable or religious trust or political partyor a research association, trade union, educational or medical institution, hospital infrastructure debt fund, not for profit university or educational institution, any authority, body or trust.
8 In case NRI derives all of his/her income through sources in India will be liable for tax in India
Why you should file Income Tax Return?
The benefits of filing ITR returns are as follows -
It is a proof of the financial status of an applicant.
It helps in applying for loans.
It helps in carrying forward capital losses
ITR receipt is a useful document and used for visa processing
ITR receipt can also be served as an address proof
In case you need to file a government tender, it is essential to show ITR receipt for previous years.
You can avail various deductions under Section 80C to 80U and
can claim refund from the income tax department too.
What Is Included In Our Package?