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Income Tax Taxation

All Types of Income Tax Return Filing In India

Income Tax Return filing

According to the provisions of the Income Tax Act 1961, income tax return filing is levied on the income of a person by the Government of India. It is levied on income earned during the financial year starting from 1st April ending 31st March. During the previous year, income earned is chargeable to tax in Assessment Year, which is the year after the previous year.

In India, every person is liable to pay tax if his/her total income is more than the income notified by the government in the slab rates.

The person liable to pay income tax:

  • An Individual
  • A Hindu Undivided Family (HUF)
  • A Company
  • A Firm
  • An Association of Persons (AOP) or a Body of Individuals (BOI)
  • A Local Authority
  • Artificial Juridical Persons

For income tax calculations, notified slab rates are applied to the taxable income of a person earned during the previous year. According to the provisions and rules contained in the Income Tax Act 1961, taxable income is calculated. Income is to be calculated under various heads of Income and to get Net Income Chargeable to Tax deductions available under Chapter VI-A are deducted.

Also, Read: Are you an NRI? Know the Tax Rules.

Income tax payment can be made to the government by either physical mode in any designated bank branch or through e-payment on NSDL website. In both cases, Payment is to be made in Challan 280. The challan is to be filled very carefully as its accuracy is important for further processing.

Income Tax Return

Income Tax Return is a statement of income earned to calculate tax liability and payment or refund of taxes. The income tax return is filed for the purpose to report income and taxes paid thereon to the government. Income tax return contains details of annual income and the amount of tax paid. Indian citizens who earn taxable income have to file Income Tax Return (ITR) every year.

Income Tax Return Applicability

Type of Return

ITR-1/ ITR-2/ ITR-3/ ITR-4 – For Individuals/HUF

ITR-6/ ITR-7- For Company

ITR-5- For other than individuals and company

  • ITR-1

One can file a return in ITR-1 in case of individual having:

  1. Income from other sources
  2. Salary
  3. Pension
  4. Income from up to one house
  5. Agriculture Income is less than Rs. 5,000
  6. Total Income is less than Rs. 50 lakhs
  • ITR-2

One can file a return in ITR-2 in case of individual or HUF having:

  1. Income is more than Rs. 50 lakhs from items in ITR 1
  2. Income from capital gains
  3. Foreign Income
  4. Agricultural Income is more than Rs. 5,000
  5. Income from Business or Profession under a Partnership firm
  • ITR-3

One can file a return in ITR-3 in case Individual or HUF having:

  1. Income from items mentioned in ITR 2
  2. Income from Business or Profession under a Proprietorship Firm
  • ITR-4

One can file a return in ITR-4 in case individual or HUF having:

  1. Section 44AD – Business (Deemed Profit-8% or 6%)
  2. Section 44ADA –Profession (Deemed Profit-50%)
  3. Section 44AE – Transporters (Deemed Profit- Rs. 7500/vehicle per month)
  • ITR-5

One can file a return in ITR-5 in case individual or HUF having:

  1. Firm
  2. Limited Liability Partnerships
  3. Association of Person
  4. Body of Individuals
  5. Artificial Juridical Persons
  6. Local Authority or Co-operative Society

Everyone who falls under the criteria, it is a legal obligation to file ITR. It also helps in getting bank loans, visas, for claiming a refund against excess income tax paid, as a proof of income certificate and also for tax payer’s self-satisfaction. In order to proceed with income tax return filing, a person must have PAN. No documents are required to be attached to the return.

Now come to the 26AS which are a consolidated statement showing the tax credit associated with the PAN. This statement shows how much tax has been received by the government by way of TDS deposited by deducted (employer, bank) on our behalf, Advance tax deposited by us, self-assessment tax deposited, etc.

Before filing income, tax return it is important to match tax payments and TDS deducted with 26AS to get a tax credit as tax credit can be taken of only those items appearing in 26AS. One can claim for benefit of tax credit or get a refund only if the return is filed.

Also, Read: Income Tax Raid (Rules & Regulations).

Due Dates for Income Tax Return Filing

An assessed who fails to submit income tax return then return can be submitted after due date u/s 139(4) and will have to pay interest u/s 234(a). Belated return can be filed on or before 31st March of the relevant Assessment Year. In case the error is discovered after the filing of the return then revised return can be filed by an assesses before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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