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Income Tax Return- Forms

ITR, Tax Benefits

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.

Income Tax Return-1 Form

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 The ITR-2A introduced in 2016 has now been withdrawn and even the old ITR-3 is merged with ITR-2.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:

  • Income from Salary/Pension
  • Income from One House Property (excluding cases where loss is brought forward from previous years)
  • Income from Other Sources (excluding winning from Lottery and Income from Race Horses)

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:

  1. Income from Salary/ Pension
  2. Income from just one house property
  3. Income from other sources excluding Winning from Lottery, Race Horses, income from foreign assets, Capital Gains, Business or Profession, Agricultural income that exceeds Rs. 5000.

Who can’t use Form ITR 1?

Return in ITR 1 cannot be used by an individual if he:

  • Is resident and ordinarily resident of India and has, –
  • Any asset (including financial interest in any entity) located outside India; or
  • Signing authority in any account located outside India; or
  • Income from any source outside India.
  • Has earned income from capital gains or business or profession
  • Has income from more than one house property
  • Has losses under the head income from other sources
  • Has total income above Rs 50 lakhs
  • Has dividend income above Rs 10 lakhs taxable under Section 115BBDA
  • Has unexplained credit or investment taxable at 60% under Section 115BBE.
  • Has agricultural income exceeding Rs 5000
  • Has income from winning from lottery or horse race
  • Has claimed any relief u/s. 90 or 90A or 91A

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

  1. An individual at the age of 80 years or more at any time during the previous year
  2. An individual or HUF whose income does not exceed Rs 5 lakhs and who has not claimed any refund in the return of income

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:

  1. By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.
  2. By filing the return online and e-verifying the ITR-V through net banking/adhaar OTP/EVC.

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:

  1. Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-residents. Now this from has been made applicable only for resident individuals.
  2. The condition of the individual having income from salaries, one house property, other income and having total income upto Rs 50 lakhs continues
  3. There is a requirement to furnish a break-up of salary. Until now, these details would appear only in Form 16 and the requirement to disclose them in the return had never arisen.
  4. There is also a requirement to furnish a break up of Income under House Property which was earlier mandatory only for ITR -2 and other forms

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:

  • PAN card is mandatory for all the assessees
  • Aadhaar card has now been made mandatory for individual tax filers. In case of non-individual tax payers, the Aadhaar card of the authorized person is required to be provided
  • Income from salary, agriculture, other sources, house property, profession, capital gains
  • Personal details like name, mobile number, address, type of employment
  • Deductions under chapter 10, chapter VI-A and many other sections like Section 80U, 80C, 80D
  • Complete bank account details including branch, IFSC number along with account number
  • Self-assessment tax paid, advance tax paid, TCS and TDS will be updated automatically

Details of cash deposited of the old, demonetized notes made between 9th November to 31st December 2016 and exceeding Rs. 2 lakh

Income Tax Return-2 Form

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.

  • Given that ITR-1 is not applicable for the RNORs and the non-residents, they have to necessarily go with ITR-2 for filing their return of income
  • The applicability of ITR-2 has been made more clear in as much as now it is applicable for individuals and HUF having income other than income under the head “Profits and Gains from Business or Profession”
  • The field of “Profits and Gains from Business or Profession” which was earlier featuring under Part B – TI has now been removed.
  • Following this, Schedule-IF (Income from Firm) and Schedule-BP have also been removed. This now means, anyone earning income from a partnership firm, now has to file ITR-3 and not ITR -2
  • Additionally, under Schedule AL, the field pertaining to “Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof”  has been done away with
  • Similar to ITR -1, even in ITR-2, under the Schedule on TDS, there is also an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made

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:

  • Salary/pension
  • House property from one or more
  • Capital Gains/Loss on sale of investments/property (both short-term and long-term)
  • Other sources (lottery, gambling and other legal channels)
  • Being a partner in the firm (earlier there was separate ITR form 3 for this, the ITD has discontinued that form and merged into ITR 2)
  • Foreign Assets/Foreign Income
  • Dividend income exceeding Rs 10 lakhs taxable u/s 115BBDA
  • Unexplained credit or unexplained investment taxable at 60% u/s 68, 69, 69A, etc.
  • Share of profit of partner from a partnership firm
  • Agricultural income exceeding Rs 5,000

When to file ITR Form 2

ITR-2 form is to be used when the assessee has income that falls into the below category:

  1. Accrued income through the sale of assets or property (Capital Gains)
  2. Income from more than one housing property
  3. Income from countries outside of India
  4. Income as a partner in any firm (not proprietorship)
  5. Income from agriculture above Rs 5,000
  6. Income from any windfall such as lotteries or horse racing
  7. Income from Salary/Pension, Housing Property, Other sources that exceeds Rs. 50 Lakhs

What is the Structure of ITR 2?

ITR-2 is divided into:

  • Part A: General Information
  • Part B-TI: Computation of Total Income
  • Part B-TTI: Computation of tax liability on total income
  • Details to be filled if the return has been prepared by a Tax Return Preparer
  • Schedule S: Details of income from salaries
  • Schedule HP: Details of income from House Property
  • Schedule CG:. Computation of income under Capital gains
  • Schedule OS: Computation of income under Income from other sources
  • Schedule CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
  • Schedule CFL: Statement of losses to be carried forward to future years
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA
  • Schedule 80G: Statement of donations entitled for deduction under section 80G
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assessee in Schedules-HP, CG and OS
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule EI: Details of Exempt Income
  • Schedule PTI : Pass through income details from business trust or investment fund as per Section 115UA, 115UB
  • Schedule FSI: Statement of income accruing or arising outside India.
  • Schedule TR: Details of taxes paid outside India
  • Schedule FA: Details of Foreign Assets
  • Schedule 5A : Statement of apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and liability at the year-end (applicable in case income exceeds Rs 50 lakhs)

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:

  1. Income exceeding Rs. 50 Lakhs
  2. Having foreign assets / income
  3. Having agricultural income which is more than Rs. 5,000,
  4. Having taxable capital gains
  5. Having income from business or profession as a partner
  6. Having more than one house property

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:

  • Individual who are of the age 80 years or above.
  • Individual whose income is less than Rs 5 lakhs per year and who do not have to claim refund in the return.

Return can be filed offline by:

  • By furnishing a return in a physical paper form
  • By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Online/Electronically:

  • By furnishing the return electronically under digital signature
  • By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V

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:

  • If any schedule is not applicable to you, strike it out and write —NA— across it
  • If any item is not applicable to you, write NA against it
  • Indicate nil figures by “Nil”
  • Put a “-” sign before negative figures
  • All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
  • If you are an individual, under the Employer Category you should tick Government if you are a Central/State Government employee. You should tick PSU if you work in a public sector company of the Central/State Government.

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?

  • Any individual or HUF having income from Business or Profession
  • Individuals who are eligible to fill out the ITR-1 Form

Income Tax Return-3 Form

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:

  • Carrying on a business or profession
  • Return may include income from House property, Salary/Pension and Income from other sources

Who can file their income tax return on ITR-3?

Income Tax Return is prepared on ITR-3 when:

  • an individual or an HUF is a partner in a firm AND
  • where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm.

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.

When to file ITR 3?

ITR-3 form is to be used when the assessee has income that falls into the below category:

  1. Income from carrying on a profession
  2. Income from Proprietary Business
  3. Along with income from a profession or proprietary business, return may also include income from House property, Salary/Pension and Income from other sources

Structure of the ITR-3 Form for AY 2018-19:

ITR-3 is divided into:

  • Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2018, of the Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the Financial Year 2017-18
  • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
  • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)
  • Part B: Outline of the total income and tax computation in respect of income chargeable total tax.
  • Verification
  • Tax Payments: Details of advance tax, TDS, self-assessment tax

After this, there are the following schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
  • Schedule FA: Statement of Foreign Assets.
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs

How to fill ITR-3 Form?

Instructions for filling out ITR-3:

  • If any schedule is not applicable score across as “—NA—“.
  • If any item is inapplicable, write “NA” against that item.
  • Write “Nil” to denote nil figures.
  • Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
  • All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

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

Major Changes in ITR 3 

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.

Who is not eligible to file ITR 3?

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.

Income Tax Return-4 Form

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:-

  • Business income where such income is computed in accordance with special provisions referred to in sections 44AD and 44AE of the Act for computation of business income; or
  • Income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA; or
  • Salary / Pension; or
  • Income from One House Property (excluding cases where there is brought forward loss or loss to be carried forward under this head); or

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

  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, of the Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the Financial Year.
  • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
  • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

2. Part B: Outline of the total income and tax computation in respect of income chargeable total tax.

  • Verification

After this there are 35 schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule- 10A: Computation of deduction under section 10A.
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule- 10B: Computation of deduction under section 10B.
  • Schedule- 10BA: Computation of deduction under section 10BA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assesse in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule TDS1: Statement of tax deducted at source on salary.
  • Schedule TDS2: Statement of tax deducted at source on income other than salary.
  • Schedule-TCS: Statement of tax collected at source.
  • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
  • Schedule FA: Statement of Foreign Assets.

How to file ITR Form 4?

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:

  • Individual is of the age of 80 years or more.
  • The income of the individual is less than Rs 5lakhs and who do not have to claim refund in the income tax return

The return can be filed offline:

  • By furnishing a return in a physical paper form
  • By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Online:

  • By furnishing the return electronically under digital signature
  • By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V

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.

Income Tax Return-5 Form

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?

  • Firm
  • LLP – Limited Liability Partnership
  • AOP – Association of Persons
  • BOI – Body of Individuals
  • Artificial juridical person (section 2 (21)(vi)
  • Cooperative/registered society
  • Local Authority
  • Persons as per section 160(1)(iii)(iv)

What is the structure of the ITR-5 Form?

The Form has been divided into two parts and several schedules:

  • Part A: General information
  • Part B: Outline of the total income and tax computation with respect to income chargeable to tax.

There are 30 schedules details of which are as under:

  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-BP: Computation of income under the head “profit and gains from business or profession”
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule- CFL: Statement of losses to be carried forward to future years.
  • Schedule –UD: Unabsorbed Depreciation
  • Schedule- 10A: Computation of deduction under section 10A
  • Schedule- 10AA: Computation of deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule- 80IA: Computation of deduction under section 80IA
  • Schedule- 80IB: Computation of deduction under section 80IB
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule-EI: Statement of Income not included in total income (exempt incomes)
  • Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule-TDS: Statement of tax deducted at source on income other than salary.
  • Schedule-TCS: Statement of tax collected at source
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets

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

  • If any schedule is not applicable score across as “—NA—“
  • Write “NA” against that item which is inapplicable
  • Write “Nil” to denote nil figures.
  • Write “-” before for a negative figure/ figure of loss
  • All figures should be rounded off to the nearest one rupee

Sequence to fill ITR-5 Form

  • Part A
  • Schedules
  • Part B
  • Part C
  • Verification

Chances 1st April, 2018 (ITR 5  FY 2017-18 or AY 2018-2019)

  • Late fee if IT returns not filled on time.
  • The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
  • New columns have been introduced in the ITR forms to report the details of GST paid and refunded
  • A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.
  • A new field has been added to report disallowance of expenses in case of TDS default.
  • Cess levied on your tax liability has been hiked by 1 per cent from the current 3 per cent to 4 per cent. ( For FY 2018-19)

How to file ITR5 Form?

ITR 5 needs to be e-filed by persons:

  • Whose books of accounts are audited u/s 44AB. The verification must be completed by using digital signature
  • Whose books of accounts are not required to be audited u/s 44AB, then the verification can be done by:
    1. Digital signature
    2. Electronic Verification Code
    3. Using ITR-V – print and signed by principal contact and post

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 assesse 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:
  1. 5000 if return is furnished on or before 31 December of assessment year.
  2. 10,000 in any other case.
  3. Total income of the person does not exceed Rs. 5 lakh then Rs. 1000.
  4. If Income is not taxable then NIL (Not required to pay penalty as per income tax provisions)

Income Tax Return-6 Form

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?

  • Companies (other than a company claiming exemption under section 11) can use ITR-6 for tax filing.
  • Companies claiming exemption u/s 11 are the ones that hold their income arising from any property for religious or charitable purposes.

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.

  1. Assessment Year for which this Return Form is applicable

This Return Form is applicable for assessment year 2018-19 only i.e., it relates to income earned in Financial Year 2017-18.

  1. Who can use this Return Form?

This Form can be used by a company, other than a company claiming exemption under section 11.

  1. Annexure-less Return Form

Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS).

  1. Manner of filing this Return Form

 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?

  • Individual,
  • HUF,
  • Firm, Association of Person (AOP),
  • Body of Individuals (BOI),
  • Local Authority and Artificial Judiciary Person
  • Companies that claim exemption under section 11(Income from property held for charitable or religious purposes)

What is the structure of the ITR-6 Form?

The Form has been divided into two parts and several schedules:

  • Part A: General information
  • Part B: Outline of the total income and tax computation with respect to income chargeable to tax.

The 33 schedules are:

  • Schedule BA: Details of Bank account
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-BP: Computation of income under the head “profit and gains from business or profession”
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule- CFL: Statement of losses to be carried forward to future years.
  • Schedule –UD: Details of unabsorbed depreciation
  • Schedule- 10A: Computation of deduction under section 10A
  • Schedule- 10AA: Computation of deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule- 80IA: Computation of deduction under section 80IA
  • Schedule- 80IB: Computation of deduction under section 80IB
  • Schedule- 80IC or 80IE: Computation of deduction under section 80IC or 80 IE
  • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule-EI: Statement of Income not included in total income (exempt incomes)
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule-DDT: Details of payment of Dividend Distribution Tax
  • Schedule BBS: Details of tax on distributed income of domestic company on buy back of shares, not listed on stock exchange
  • Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule-TDS: Statement of tax deducted at source on income other than salary.
  • Schedule-TCS: Statement of tax collected at source
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets

Changes (ITR 6 FY 2017-18 or AY 2018-2019)

  • New columns have been introduced in the ITR forms to report the details of GST paid and refunded
  • Schedule PL has been modified for the taxpayers to provide GST related details.
  • A new field has been added to report disallowance of expenses in case of TDS default.
  • Companies are now required to provide the details of apportionments made for CSR activities from the net profit.
  • Mention the registration number of the firm of the Chartered Accountant in the ITR form, who has done an audit.
  • In the case of sale of shares of unlisted companies, the requirement to disclose the Actual Sales consideration and Fair Market value of the shares.

Late filing fee (Section 234F) for the delay in the filing of ITR

Instructions for filling out ITR-6

  • If any schedule is not applicable score across as “—NA—“.
  • If any item is inapplicable, write “NA” against that item.
  • Write “Nil” to denote nil figures.
  • Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
  • All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

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.

  • Part A
  • Schedules
  • Part B
  • Verification
  • Part A
  • Schedules
  • Part B
  • Verification

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:

  • 5000 if return is furnished on or before 31 December of assessment year.
  • 10,000 in any other case.
  • Total income of the person does not exceed Rs. 5 lakh then Rs. 1000.
  • If Income is not taxable then NIL (Not required to pay penalty as per income tax provisions)

Income Tax Return-7 Form

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?

  • Return under section 139 (4A), filing. Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions, if the total income in respect of which he is assessable as a representative assessee exceeds the maximum amount which is not chargeable to income-tax
  • Return under section 139 (4B), a political party is required to fill the form in case the income exceeds maximum amount not chargeable to tax.
  • Return under section 139 (4C) is filled by some organisations such as :
    1. Scientific Research Association ;
    2. Hospital, Fund, Any Educational Institution or University;
    3. Association or Institution Referred to in Section 10 (23A);
    4. News Agency ;
  • Institution Referred to in Section 10 (23B);
  • Return under section 139(4D), every college or University who is not required to furnish the return of income or loss
  • Return under section 139(4D), every college or University is required to fill which who is unable not required to furnish the return of income or loss under any other provision of this section
  • Return under section 139 (4E), Every business trust, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of its income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply *_ if it were a return required to be furnished
    under sub-section (1).
  • Return under section 139 (4F) ,Every investment fund referred to insection 115UB, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

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.

  • Schedule-I: Details of amounts accumulated/ set apart within the meaning of section 11(2) in last year’s viz., previous years relevant to the current assessment year.
  • Schedule-J: Statement showing the investment of all funds of the Trust or Institution as on the last day of the previous year.
  • Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc., of the Trust or Institution.
  • Schedule-LA: Details in case of a political party.
  • Schedule-ET: Details in case of an Electoral Trust
  • Schedule-HP: Computation of income under the head Income from House Property.
  • Schedule-CG: Computation of income under the head ITR.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-VC: Details of Voluntary Contributions received
  • Schedule-OA: General information about business and profession
  • Schedule-BP: Computation of income under the head “profit and gains from business or profession
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB (n)
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC (p)
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule-TDS: Statement of tax deducted at source on income other than salary.
  • Schedule-TCS: Statement of tax collected at source
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets

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)

  • Late filing fee (Section 234F) for the delay in the filing of ITR.
  • Political parties now need to report if they have received any cash donation in excess of Rs 2,000 in the form.
  • New columns have been introduced in the ITR forms to report the details of GST paid and refunded
  • Schedule PL has been modified for the taxpayers to provide GST related details.
  • A new field has been added to report disallowance of expenses in case of TDS
  • Trust will now be required to provide the details of fresh registration in case its stated objects have changed
  • Disclosure of ‘unexplained income’ and ‘dividend income’ in excess of Rs 10 lakh

How to fill up the Verification Document?

Keep the following points in mind while filling up the verification document:

  • You are supposed to fill up the required information in the verification. You can strike out whatever is not applicable.
  • Ensure that the verification has been signed prior to furnishing the return. Also, write the designation of the person signing the return.
  • You must note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income Tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

Instructions for filling out ITR-7

  • For an inapplicable item, use “NA”
  • As per the form, for showing any loss or negative figure use “-” sign.
  • All greyed out fields are either auto-filled or non-editable.
  • Please enter only the value wherever the information is needed in percentage i.e. % sign not required.
  • All the figures used in the form must be rounded off to the nearest one rupee. In case of the total income and tax payable, the amount should be rounded off to nearest 10 Rupee multiple.

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:

  • Part A
  • Schedules
  • Part B
  • Verification

Steps For Filing the ITR-7 Form?

This return form can be filed with the Income Tax Department in the following way:

  • Filing return under digital signature electronically
  • Using the Internet to transmit data electronically and submit the ITR form for verification.
  • In the online filing, the assessee needs to take two prints out copies of the ITR-7 Form. Thereafter, the copy has to be duly signed by the assessee.The assessee may retain the other copy for the record.

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:

  • 5000 if return is furnished on or before 31 December of assessment year.
  • Rs. 10,000 in any other case.
  • Total income of the person does not exceeding Rs. 5 lakh then Rs. 1000.
  • If Income is not taxable then NIL (Not required to pay penalty as per income tax provisions)

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Other Related Article:

Income Tax Return-Form 1

Income Tax Return Form-2

Income Tax Return Form-3

Income tax returns – Form 4

Income tax returns – Form 5

Income tax returns – Form 6

Income Tax Return Form-7

 

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