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Income Tax Return
Tax return is a form that you are required to file and contains information about your income as well as tax liability thereon. You are required to file these tax return forms with the Income Tax Department. The Income Tax Act, 1961, obligates the citizens of India to file their tax returns, at the end of every Financial Year, with the I-T Department. However, it is not mandatory for every citizen. There are different types of ITR form and each form is applicable to a certain section of assessee. These forms need to be filed on a specified due date. Income Tax Department will process only those tax returns which are filed in proper forms and within the due date.
The single Income Tax Return (ITR) form, notified by the CBDT on April 5, has been put on its website, https://www.incometaxindiaefiling.gov.in
“Other ITRs will be available shortly,” said the Income Tax e-filing website.
The new ITR forms for the assessment year 2018-19 mandate the salaried class assessees to provide their salary breakup, and businessmen their GST number and turnover.
The Central Board of Direct Taxes (CBDT), that frames policy for the tax department, had said some fields have been “rationalised” in the latest forms and that there is no change in the manner of filing the ITRs as compared to the last year.
The form this time seeks an assessees salary details in separate fields and in a breakup format such as allowances that are not exempted, value of perquisites, profit in lieu of salary and deductions claimed under section 16.
These details are provided in the Form 16 of a salaried employee and a senior tax official said that these are now meant to be mentioned in the ITR for clarity of deductions.
The CBDT had said that the ITR-1 can be filed by an individual who “is resident other than not ordinarily resident and having an income of up to Rs 50 lakh.”
Which ITR Form to File?
The Finance Minister has promised to the individual tax payer that he will make tax filing simpler for them, fulfilling this promise CBDT has now introduced a simplified ITR 1 Form applicable only for individuals having income up to Rs. 50 lakh. But taxpayers having dividend income above Rs. 10 lakh or unexplained credit can’t opt for ITR-1. The ITR-2A introduced in 2016 has now been withdrawn and even the old ITR-3 is merged with ITR-2. As such all the individual taxpayers (except those who are eligible to use ITR-1 or those earning business incomes) would be required to file ITR-2 only.
Old ITR-4 is now replaced by ITR-3 as such the individual taxpayer earning income from business or profession are now required to use ITR-3. Taxpayers opting for presumptive taxation were required to file ITR-4S but now they are required to file ‘ITR-4 SUGAM’ for presumptive income.
What is the structure of ITR 1 Form?
Part A – General Information
Part B – Gross total Income
Part C – Deductions and taxable total income
Part D – Computation of Tax Payable
Part E – Other Information
Schedule IT – Detail of Advance tax and Self-Assessment Tax payments
Schedule TDS – Detail of TDS/TCS
Who is eligible to file the ITR-1 Form
ITR -1 should be filed for an assessment year, when Total Income of an Individual includes:
In case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income too is limited to the above specifications.
When Should ITR – 1 be filed?
ITR-1 form is to be used when the assessee has income that is within Rs. 50 Lakhs and when the source of income falls into any of the below categories:
Who can’t use Form ITR 1?
Return in ITR 1 cannot be used by an individual if he:
How do I file my ITR-1 Form?
You can submit your ITR-1 Form either online or offline.
Offline:
Only following persons have the option to file the return in paper form
For offline ,the return is furnished in a physical paper form.The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
Online/Electronically:
If you submit your ITR-1 Form electronically, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Alternatively, you can e-verify your return.
The Major Changes which are made in the ITR 1 for the AY 2018-19 are:
Terms to know in ITR Form 1:
Revised Return: If you have already filed your income tax return but you later discover that you have made a mistake in it, you can re-file. This is called a Revised Return. For the Financial Year 2017-18, you can file your Revised Return till March 31, 2019.
Notice Number: You should fill this in only if you are filing your return in response to a notice from the Income Tax Department.
Advance Tax: For salaried individuals, TDS mostly takes care of advance tax payments. However you might have other forms of income – like interest on savings bank accounts, fixed deposits, rental income, bonds or capital gains. If tax on income is more than Rs. 10,000 per year, you are required to estimate your income and pay Advance Tax. This has to be paid in quarterly installments in June, September, December and March.
Self-Assessment Tax Payments: This is the difference between tax payable and tax paid and it needs to be paid before you file your return. When you fill out the form for the first time, you won’t know whether Self-Assessment Tax has to be paid or not. So, fill out the form first along with the Advance Tax details, if paid. Compute your income and if after computing, you find that tax is still payable, pay it and then fill in the details in self-assessment tax paid section in the return.
Annexure-less Return: ITR-1 Form is an Annexure-less return. This means that you do not have to attach any documents (such as Form 16/Form 26AS) with the ITR-1 Form.
Important information required to file ITR:
Details of cash deposited of the old, demonetized notes made between 9th November to 31st December 2016 and exceeding Rs. 2 lakh
Income tax Department has categorized taxpayers on the basis of income, source of income and many other factors to ensure easy compliance. Taxpayers having incomes from different categories, thus, have to download and fill different Income Tax Return forms. For instance, the ITR-2 Form is for taxpaying persons and HUFs who do not earn from and independent profession or business.
When filing income tax returns, each category of persons, has a different form that must be used. The government has issued ITR 2 form for individuals and HUF’s who derive income from other sources, including their salary or pension. The previously used ITR 2A has been removed and now only ITR 2 form only exists, to be used by individuals meeting the requirements outlined in this guide.
Who is eligible to file ITR 2 for AY 2018-19?
ITR Form 2 is for Individuals and HUF receiving income other than income from “Profits and Gains from Business or Profession”. Thus persons having income from following sources are eligible to file Form ITR 2:
When to file ITR Form 2
ITR-2 form is to be used when the assessee has income that falls into the below category:
What is the Structure of ITR 2?
ITR-2 is divided into:
Who can use ITR Form 2?
ITR-2 must be filed by individuals and HUFs who are not eligible to file ITR-1 Sahaj form, because of following reasons:
How to file ITR 2?
You can submit your ITR-2 Form either online or offline.
Offline:
Only following persons can file their ITR offline:
Return can be filed offline by:
The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
Online/Electronically:
If you submit your ITR-2 Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
Remember that ITR-2 is an annexure-less form i.e. you do not have to attach any documents when you send it.
How do I fill out my ITR-2 Form?
Here are a few general guidelines to keep in mind while filling your ITR-2 form:
The ITR-2 Form can also not be used if you are claiming double taxation relief under Section 90/90A/91.
Who cannot file ITR 2 for AY 2018-19?
ITR 3 form can be used by an individual or a Hindu Undivided Family (HUF) earning income from a business or a profession. ITR-3 is also required to be filed by a person whose income is chargeable to tax under “profits and gains of business or profession” in the nature of interest, salary, bonus, commission or remuneration.
Form ITR 3 can’t be used by any person other than an individual or a HUF. Also, an individual or a HUF not earning any income from business or profession can’t use ITR.
It is a type of Income Tax Return form to be used by individuals or HUF’s deriving income from proprietary business or profession. It is to be used for Assessment Year 2018-19 by the groups mentioned below to file their returns.
ITR 3 is applicable for those Individuals and HUFs who have income from proprietary business or are carrying on any profession.
The persons having income from following sources are eligible to file ITR 3:
Income Tax Return is prepared on ITR-3 when:
In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, the assessee shall use this form only; not Form ITR-2.
ITR-3 form is to be used when the assessee has income that falls into the below category:
ITR-3 is divided into:
After this, there are the following schedules.
Instructions for filling out ITR-3:
Sequence for filling out parts and schedules:
The Income Tax Department advises assesses to follow the sequence mentioned below while filling out the income tax return.
1. Part A- General on page 1
2. Schedules
3. Part B-TI and Part B-TTI
4. Verification
Aadhaar Number
It is necessary to quote the Aadhaar number in the return of income. If any person does not have the Aadhaar Number but he had applied so, then he can quote the Enrollment ID of Aadhaar Application Form in the ITR.
Declaration of value of assets and liabilities
In 2016 taxpayers have to declare the value of assets and liabilities if the total income is more than Rs.50 lakhs but from now they have to declare also the description of movable assets and disclose the address of the immovable property.
Disclosure of Cash deposits during Demonetisation
It is necessary to fill this new column which introduced in all ITR forms if the taxpayer has deposited Rs 2 lakh or more during the demonetization period.
Disclosure of unexplained income and Dividend Income
New fields inserted in Schedule ‘OS’ to declare unexplained credit or investment and dividend received from domestic companies above Rs 10 lakhs. Such persons cannot opt for ITR 1 (Sahaj).
Registration number of Chartered Accountant Firm
It is mandatory to mention the registration number of the firm of Chartered Accountant which has done the audit in ITR forms.
As, ITR-3 form is used for business returns, any individual filing his/her personal income tax return, ie. Salaried employee or filing using ITR 1 form does not have to file ITR3.
Income tax returns (ITR) form to be used by individuals earning business income for the assessment year 2018-19. Assessment year is the year immediately succeeding the financial year.
ITR 4, or commonly known as Sugam, is to be filed those by individuals and Hindu Undivided Families (HUFs) who have opted for the presumptive income scheme for income earned from business and profession during the financial year 2017-18 under section 44AD, 44ADA, and 44AE of the Income-tax Act, 1961 .
For the Assessment Year 2018-19, the form has been modified to include GST details along with detailed financial information. The old ITR-4S tax form has been renamed ITR-4.
The ITR-4 Form is the Income Tax Return form for those taxpayers, who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.
Who is eligible to file using the ITR-4 Form?
This Return Form is to be used by an individual / HUF / Partnership Firm whose total income for the assessment year 2018-19 includes:-
Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).
What is the structure of the ITR-4 Form?
ITR-4 is divided into:
1. Part A
2. Part B: Outline of the total income and tax computation in respect of income chargeable total tax.
After this there are 35 schedules.
You can submit your ITR-4 Form either online or offline.
Offline:
The ITR form can be filed offline only in any of the following case:
The return can be filed offline:
The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
Online:
If you submit your ITR-4 Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
Who is not eligible to file ITR 4?
SUGAM cannot be used in following cases:-
1. Income from more than one house property or where there is brought forward loss or loss to be carried forward under this head; or
2. Income from Winnings from lottery or income from Race horses; or
3. Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or
4. Income taxable under section 115BBDA; or
5. Income of the nature referred to in section 115BBE; or
6. Agricultural income in excess of ₹5,000; or
7. Income from Speculative Business and other special incomes; or
8. Income from an agency business or income in the nature of commission or brokerage; or
9. Person claiming relief of foreign tax paid under section 90, 90A or 91; or
10. Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or
11. Any resident having income from any source outside India.
Changes made in ITR form 4
Keeping with the trend, this year, too, various changes have been made in ITR 4, while the name of form remains unchanged. These changes include quoting of GST number and the amount of turnover as per GST return, the number of details of financial particulars has been increased, the codes for selecting nature of business or profession while filing return have been changed, and so on.
The CBDT, in a press release issued in April, had stated that there is no change in the manner of filing of ITR. All ITR forms are to be filed electronically. However, those who are required to file ITR-1 (Sahaj) or ITR-4 (Sugam), can file it in paper form if they satisfy the below mentioned conditions:
a) The individual is of age of 80 years or more at any time during the previous year; or,
b) The individual or HUF’s income does not exceed 5Lakh and who has not claimed a refund while filing ITR.
Earlier on April 14, 2018, the tax department had notified ITR form 1 for salaried individuals. As per the changes made in the single page form, only resident individuals who can use this form should have income up to Rs 50 lakh, and earn income from salary, have one house property and other income such as interest while providing break up of their salary income and income from house property. The deadline to file ITR is July 31, 2018.
ITR-5 Form can be used by Firms, Limited Liability Partnerships(LLPs), Association of persons(AOPs) and Body of Individuals(BOIs), Artificial Juridical Person, Cooperative society and Local authority, provided they are not required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) (i.e Trusts, Political party, Institutions, Colleges, etc)
Who can use ITR Form – 5?
What is the structure of the ITR-5 Form?
The Form has been divided into two parts and several schedules:
There are 30 schedules details of which are as under:
Mode of filing ITR 5
Taxpayers can use either online or offline option to submit the ITR 5 Form for the AY 2017-18 and all the taxpayers who are paying tax and earned an income more than 5 lakhs shall furnish their ITR by offline and online mode. It is mandatory to file the return electronically under the digital signature whose accounts are liable to audit under section 44AB.
When the returns filed by the online mode so the taxpayer should print out the two copies of ITR V Form and one copy of that form has duly signed by the taxpayer and send it to the Income Tax Department-CPC Office within 120 days of e-filing.
When the return filed by the offline mode so the acknowledgment slip provided by the Income Tax Department should be duly filled with the return form.
Common guidelines while filling ITR 5
Sequence to fill ITR-5 Form
Chances 1st April, 2018 (ITR 5 FY 2017-18 or AY 2018-2019)
How to file ITR5 Form?
ITR 5 needs to be e-filed by persons:
Penalty on late filing of ITR:
The Income Tax Department of India issues ITR-6 form for companies to file their income tax returns. The companies should be other than companies that claim exemptions under Section 11. As a taxpayer, you are advised to match the taxes that are collected or deducted or paid by you or on your behalf with your Tax Credit Statement
The ITR 6 form is an income tax form that is to be used by companies other than those companies that claim exemptions under Section-11.
Companies that can claim exemptions under Section-11 are the ones who hold their income from property for religious or charitable purposes.
Who is eligible to File Form ITR 6?
Guidelines on ITR 6 Guidelines
Guidelines for filling ITR-6: These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.
This Return Form is applicable for assessment year 2018-19 only i.e., it relates to income earned in Financial Year 2017-18.
This Form can be used by a company, other than a company claiming exemption under section 11.
Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS).
This Form has to be compulsorily furnished electronically under digital signature to the Income Tax Department.
Who is Not Eligible to File ITR 6 Form?
What is the structure of the ITR-6 Form?
The Form has been divided into two parts and several schedules:
The 33 schedules are:
Changes (ITR 6 FY 2017-18 or AY 2018-2019)
Late filing fee (Section 234F) for the delay in the filing of ITR
Instructions for filling out ITR-6
Sequence for filling out parts and schedules
The Income Tax Department advises assesses to follow the sequence mentioned below while filling out the income tax return.
Penalty on Late Filing of ITR
Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs.10K.
W.e.f. assessment year 2018-19, if assessee failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to penalty of:
ITR 7 Form is for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)
It is an annexure-less return so no document (including TDS certificate) should be attached with this return form while filing ITR 7. It is mandatory to match the taxes deducted or collected by or on behalf of them with their Tax Credit Statement (FORM26AS).
Who is Eligible to file the ITR-7 Form?
Structure of the ITR-7 Form:
The ITR-7 Form is divided into two parts and nineteen schedules
Part-A – General information
Part-B – Outline of the total income and tax computation with in respect of income chargeable to tax.
Who is not eligible to file ITR 7 Form?
Person who is not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C) or Section 139 (4D) or 139(4E) or 139(4F)
Changes on (ITR 7 FY 2017-18 or AY 2018-2019)
Keep the following points in mind while filling up the verification document:
Instructions for filling out ITR-7
Procedure of filling the Parts and Schedules:
The IT department offers a significant way to fill the income tax return. The sequence is followed in following steps:
Steps For Filing the ITR-7 Form?
This return form can be filed with the Income Tax Department in the following way:
Penalty on late filing of ITR:
Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs.10,000.
Assessment year 2018-19, if assessee failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to penalty of:
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