Income tax return (India)

Income Tax Return is the form in which an assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.^[1]

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year.^[2] These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.

Filing of Income Tax Returns: Obligation by Law

Individuals who fulfill any one of the following conditions should by law file their Income Tax Returns during a financial year:^[3]

• Possesses a valid Credit
• Pays for foreign travel, either for himself or another individual
• Is the member of a Club where entrance fees charged is twenty five thousand or more
• Occupies a particular floor area of an immovable piece of property
• Is the owner of a vehicle

Due Date for filing returns

The due date for filing Income Tax for year FY 2016-17 was extended to 05-Aug-2017^[4]

ITR-1 SAHAJ

ITR-1 SAHAJ form is an essential Income Tax Return form for Indian citizens filing their tax returns with the Income Tax Department. This form is issued by the Income Tax Department of India and is an integral part of the rules laid down by the Government of India for filing Income Tax Returns.

Eligible individuals for ITR-1 SAHAJ

Individuals who have earned their Income for a Financial Year only through the following means are eligible to fill the ITR-1 SAHAJ form.^[5]

• Through Salary or Pension
• Through One House Property (except in case of losses brought forward from preceding years)
• Through other sources apart from Lottery, Racehorses, Legal Gambling etc.

In case of clubbed Income Tax Returns, where a spouse or a minor etc. is included in the tax returns, this can be done only if their income too is limited to the specifications laid down above.

Non-eligible individuals for ITR-1 SAHAJ^[6]

Individuals who are not eligible to fill the ITR-1 SAHAJ form are those who have earned Income through the following means:^[5]

• Through more than one piece of Property
• Through Lottery, Racehorses, Legal Gambling etc.
• Through non tax-exempted capital gains, Short term as well as Long term
• Through exempted income exceeding Rs. 5000
• Through Business and Professions
• Loss under the head other sources
• Any Person claiming relief under section 90 and/or 91
• Having Total Income more then Rs 50 Lakhs^[7]===
• If any Resident Individual who has any Income from any source outside India or has any asset outside India or has signing authority in any account located outside India

Submission of ITR-1 SAHAJ form

The form can be submitted physically at any Income Tax Returns Office. An Acknowledgment Receipt can be obtained upon submission.

In case of Electronic Filing^[8] of the form there are two alternatives. Firstly, if a Digital Signature is obtained, the Form is uploaded online. Secondly, the Form is downloaded, printed, signed, and a copy of the acknowledgement is sent by post to the Income Tax Department’s office in Bengaluru.

ITRV can now be verified online^[9] Using Aadhaar Card or Electronic Verification Code (EVC). The EVC can be generated either via One Time Password sent to email and registered mobile number (if income is less than INR 5 Lakhs) or via Net Banking. After online verification Income Tax Assesses is not required to send ITRV to Bangalore CPC.

ITR-3 Form

The ITR-3 Form particularly applies to those Individuals and 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.

Eligible Assessees for the ITR-3 Form

The eligibility criteria of every Income Tax Return form are governed by a set of rules and conditions. The ITR-3 Form is applicable only to those Individuals and Hindu Undivided Families that can be placed under the following categories

• Is a Partner in a firm
• Gains Income through ‘Profits or gains of business or profession’
• Gains Income by means of interest, salary, bonus, commission, remuneration, as a partner

If the partner of a firm only earns income from the firm as a share in the profits and not by any other means such as interest, bonus, salary, remuneration, or commission etc. then such an Individual or Hindu Undivided Family should file Income Tax Returns using only the ITR-3 Form, and not the ITR-2 Form.

Non-eligible Assessees for the ITR-3 Form

Individuals and Hindu Undivided Families who are not eligible to fill the ITR-3 Form are those who have earned Income through a Business or Profession operated as a Proprietorship firm.^[10] Assessees, who apart from being a partner in a firm, also have sources of income from a business or profession, including the speculation market, are also not eligible to file their Income Tax Returns through this form.

References

External links

• e-filing website of Income Tax Department