ITR: Income Tax Return

Table of Contents

Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, starting on 1st April and ending on 31st March of the following year.


Income can be of various forms such as-

  • Income from Salary.
  • Profits and gains from Business and profession.
  • Income from house property.
  • Income from capital gains.
  • Income from other sources such as dividend, interest on deposits, royalty income, etc.

 

Each taxpayer must know all the ITR form details and file the ITR before the specified due date to avoid penalties. There are 7 types of ITR forms such as-

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ITR 1

This form is for resident Individuals who fall under the below mentioned category

  1. If income is created from a pension or salary.
  2. The total income produced can be a maximum of Rs 50 lakh and not more.
  3. Income can be created from other sources such as lottery, winning horse races, etc.


ITR 2

This form is for individuals and Hindu Undivided families who fall under the below category-

  1. The income of the taxpayer must be more than 50 lakhs.
  2. Income can be generated via salary or from pension.
  3. Income generated from house property.


ITR 3

This form must be chosen by individual taxpayers and Hindu undivided families who make an income from a profession or from owning a business such as-

  1. Individuals creating a profit from a business or a profession.
  2. In case the taxpayer is the director of the company
  3. Turnover of the business pension exceeds 2 crore.


ITR 4

This form must be chosen by individuals and HUFs, Partnership firms(other than LPP) which are residents and whose total income includes-

  1. Income from salary or pension up to Rs 50 lakhs.
  2. Income from one house property, not more than 50 lakh.
  3. Professional income according to income scheme under section 44AD or 44AE.


ITR 5

This form is used only by the following bodies to file income tax returns

  1. Limited Liability Partnerships(LPP’s)
  2. Body Of Individuals(BOI’s)
  3. Association Of Persons(AOP’s)


ITR 6

Given below are the bodies and the income sources eligible for this form-

  1. Organizations that claim tax exemptions.
  2. Incomes earned from housing.
  3. Incomes from multiple sources.


ITR 7

This form caters to individuals and companies that are required to file tax returns under the following sections-

  1. Section 139(4A)
  2. Section 139(4B)
  3. Section 139(4C)
  4. Section 139(4D)
  5. Section 139(4E)
Income Tax Return, ITR

Who needs to file ITR?

ITR can be filed when the aggregate of all his income exceeds the basic exemption limit. There are different basic exemption limits applicable based on age. All those below the age of 60 years have to pay tax only if their taxable income exceeds Rs 2.50 lakhs. Those over the age of 60 have to pay tax only if their taxable income exceeds Rs 2.50 lakhs. Those over 60 but below 80 enjoy exemption up to Rs 3 lakhs. Very senior citizens who have already crossed 80 years enjoy their income up to 5 lakh every year, without any exemption.

For example-In some of the cases, the gross total income may exceed the basic exemption limit, making us liable for filing an ITR but due to various detections, the taxable income may come down below 2.50 lakh and there is no liability to pay any tax.

Documents Required to fill for ITR

The documents required to fill ITR forms are-

  • Pan Card
  • Tax Deducted at Source (TDS) certificate.
  • Form 16A, 16B and 16C
  • Bank statements
  • Interest certificates
  • Salary pay slips
  • Form 26AS
  • Proof of tax saving investments


How to file ITR for 2023-24


The ITR may be completed by going to the Income Tax Department’s official website.  Recent updates to the web platform for e-filing income tax returns have been made by the Income Tax Department and the Government of India. We can easily fill out the form by following the steps given below-

STEP 1: On the basis of the provisions prescribed in the Income Tax rules, you can find out your income tax liability.

STEP 2: Refer to your Form 26AS to get a summary of your TDS payment for the different quarters of the assessment year.

STEP 3: Based on the eligibility requirements, ascertain the category to which you belong.

STEP 4: Visit the official portal of the Income Tax Department.

STEP 5: In case you are a new user, you need to register yourself using the “Register” button.

STEP 6: If you have already registered yourself on the portal previously, you can just click on the “Login” button.

STEP 7: Click on the ‘File Income Tax Return’ option under the ‘e-file’ tab.

STEP 8: From the list provided on the website, you can choose the category that you fall under like individual, Hindu Undivided Family, etc.

STEP 9: Choose the suitable ITR form applicable to you.

STEP 10: You will be required to enter the details of your bank account as well.

STEP 11: After that, you will be sent to a new web page where you can review the pre-filled ITR details. You must review the details and make any necessary adjustments. You must also confirm and authenticate the details.

STEP 12: As soon as the procedure is finished, check the returns, then send a physical copy of them to the Income Tax Department.

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