Income Tax Return (India) – More About Income Tax
Income tax return (India) is an important document you must produce at the time of availing a home loan. As it reflects your financial discipline and prosperity as well as shows your capacity to repay a loan.
What is an income tax return?
An income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. The procedure of filing income tax returns is describe as income tax filing.
Income Tax Return is the form in which assessee files information about his Income and tax thereon to the Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.
ITR-1 form is an essential x form|Income Tax Return form]] for Indian citizens filing their tax returns with the Income Tax Department. Income Tax Department of India issue this form and is an integral part of the rules laid down by the Government of India for filing Income Tax Returns.
The ITR-2 Form is an important Income Tax Return form used by Indian citizens as well as Non Residents to file their Tax Returns with the Income Tax Department of India.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, require citizens to file their tax returns with the Income Tax Department at the end of every financial year and this form is a part of the filing process as specified by the Government of India.
The due date for filing return with the Income Tax Department of India is 31 July every year.
The Income Tax Department or the Ministry of Finance, India issued to change only if a directive to this effect.
The Financial Year ends on 31 March every year so Assessees have a period of four months to prepare their Income Tax Returns.
The ITR-3 Form particularly applies to those Individuals and also Hindu Undivided Families who are registered as Partners in a firm. As per Rule 12 of the Income Tax Rules, 1962.
This form does not apply to those who are Proprietors of a firm. It is mainly for the business which includes partnership deals. It is also applicable for professionals but it should be a partnership profession
The ITR-4 Form is applicable to those individuals and Hindu Undivided Families. Who wants to declare their income from Business or Profession under Presumptive Income Scheme of Income Tax.
Under Section 44AD, Sec 44ADA and Section 44AE of the Income Tax Act.
Why do you have to file income tax returns?
Whether you are a resident Indian or an NRI, filing an ITR is compulsory. If your total Indian income exceeds Rs 2.5 lakh.
Even if you don’t meet this threshold, it’s a good practice to file or e-file your income tax return also. An income tax return is an important document you must produce at the time of availing a home loan.
As it reflects your financial discipline and prosperity as well as shows your capacity to repay a loan.
The ITR-5 Form is applicable to be use a person being a firm, LLPs, AOP, BOI, an artificial juridical person referred to in the below section.
The estate of deceased, the estate of the insolvent, business trust and investment fund, cooperative society, and local authority.
[For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7] (Please see Rule 12 of the Income-tax Rules,1962)
Companies to e-file income tax return if they do not claim an exemption under Section 11 of the Income Tax Act, 1961 is filled ITR Form 6 or ITR 6
Under existing Income Tax rules, companies that can claim exemption u/s 11 are those who have income from property that is held for charitable or religious purposes.
Companies claiming an exemption under section 11 are those whose income from the property is held for charitable or religious purposes.
ITR-7 is file when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
Return under sections:
is require to be file when income derived from property held under trust or other legal obligation wholly. Also, for charitable or religious purposes or in part only for such purposes.
If the total income without giving effect to the provisions of section 139A. Exceeds the maximum amount which is not chargeable to income-tax.
Every university, college or other institution are fill.
It does not require to furnish the return of income or loss under any other provision of this section.
must be fill by every business trust which is not require to furnish the return of income or loss.
Why do you have to file income tax returns?
Whether you are a resident Indian or an NRI, filing an income tax return is compulsory. Also, If your total Indian income exceeds Rs 2.5 lakh, Even if you don’t meet this threshold, it’s a good practice to file or e-file your income tax return.
An income tax return is an important document you must produce at the time of availing a home loan, as it reflects your financial discipline and prosperity as well as shows your capacity to repay a loan.