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What is ITR?

Income Tax Return (ITR) is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department.

The department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. Every taxpayer should file his ITR on or before the specified due date.

The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to like individuals, HUF, company, etc.

Types of ITR - Who should file which?

This Return Form is for a resident individual whose total income for the assessment year 2018-19 includes:

Income from Salary/ Pension; or

  1. Income from One House Property (excluding cases where loss is brought forward from previous years); or
  2. Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
  3. Agricultural income up to Rs.5000.

ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2018-19 includes:

  1. Income from Salary/Pension; or
  2. Income from House Property; or
  3. Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

Total income from the above should be more than Rs 50 Lakhs

Also,

>> If you are an Individual Director in a company

>> If you have had investments in unlisted equity shares at any time during the financial year

>> Being a resident not ordinarily resident (RNOR) and non-resident

>> Income from Capital Gains; or

>> Foreign Assets/Foreign income

>> Agricultural income more than Rs 5,000

>> Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

The Current ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession. The persons having income from following sources are eligible to file ITR 3 :

  1. Carrying on a business or profession
  2. If you are an Individual Director in a company
  3. If you have had investments in unlisted equity shares at any time during the financial year
  4. Return may include income from House property, Salary/Pension and Income from other sources
  5. Income of a person as a partner in the firm

The current ITR 4 is applicable to individuals and HUFs, Partnership firms (other than LLPs) which are residents having income from a business or profession. It also include those 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 exceeds Rs 2 crore, the taxpayer will have to file ITR-3.

ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes), this return has to be filed electronically only.

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

  • Return under section 139(4A) is required to be filed by 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.
  • Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
  • Return under section 139(4C) is required to be filed by every –
    • Scientific research association;
    • News agency ;
    • Association or institution referred to in section 10(23A);
    • Institution referred to in section 10(23B);
    • Fund or institution or university or other educational institution or any hospital or other medical institution.
  • Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
  • Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions of this section.
  • Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish return of income or loss under any other provisions of this section.

 

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7 Benefits of Filing ITR (Income Tax Return)

Filing ITR avoids penalties
Effective from FY 2017-18, the Income Tax Department levies a penalty of Rs 10,000 under section 234F on individuals who do not file their income tax return. Filing ITR on time avoids unnecessary penalties. Even though the penalty has been kept at Rs 1,000 if your annual income is not more than Rs 5 lakh, as a law-abiding citizen, it is your duty to file your tax returns.
ITR receipt is a useful document for hassle-free processing of bank loans
Most banks and NBFCs ask for ITR receipts of the latest three years when you apply for high-value loans like home and car loans. Lenders consider ITR as the most authentic document supporting an individual’s income. Hence, you should regularly file income tax return if you are planning to avail home or car loans in the future.
Visa processing
Embassies of developed countries like the United States, United Kingdom, Canada, and Australia ask for ITR receipts of the past years to process your visa application. They are very particular about your tax compliance and hence, you are asked to furnish past ITR receipts. This helps them assess your income and ensure that you are able to take care of the expenses on your trip.
Compensate losses in the next financial year
Individuals cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. As per the income tax law, individuals are not allowed to carry forward losses and set them off against future years’ income if the ITR is not filed within the due date. Hence, it is important to file your income tax return on time in order to claim the losses in future years. Filing ITR on time is beneficial in many ways while keeping you tax-compliant. The e-filing season has begun for the Financial Year 2018-19 and the due date is 31 July, 2019. Be a responsible citizen and file your taxes early to avoid the last-minute issues.
Claiming refund
There could be a possibility that there has been tax deducted at source (TDS) on some investment made in the name of the individual. "If TDS has been cut, one will have to file the ITR to claim refund of the same," informs Suraj Nangia, Partner, Nangia Advisors LLP.
Establishing income proof in compensation cases
Although, the Motor Vehicles Act does not make it compulsory to provide the ITR while arriving at compensation in case of accidental death or disability, the claims tribunal agreed procedures approved by Delhi High Court mention the need for ITR in case of self-employed persons.
Being a law abiding law abiding citizen
More than any other benefit, being on the right side of law helps. "It is also recommended to keep the income tax department informed about your income and taxability. This communication is only possible when you file your ITR," says Gupta.
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How to File ITR

There are two modes to file ITR. Online and Offline. In Online Mode there are two options. Either to upload as an XML file, which is downloaded from the income tax website which has to be filled and uploaded. Second is online filing of application. You can chose either of these options to file ITR. However we have described the process we will be using to file your ITR (i.e. online application filing)
  • file-preparation-with-documents

    File Creation

    All the required documents will be collected from you as per your package and file will be created.

  • ITR Computation and ITR Return Filing

    Computation Preparation

    The income and other tax data will then be computed with the data provided by you and computation will be prepared. 

  • name-application

    Online Application Filing

    ITR Applications are filed online. Hence, your application will be prepared and filed online on Income Tax Website

  • aadhar verification

    E-Signing of Application

    To complete the signing process, it is mandatory to E-Verify your ITR Application Online. 

  • work-completion

    Return Filed

    Once all the above steps are executed your application will be filed successfully. Computation and copy of ITR will be sent to you via mail.

CA Assisted ITR Return Filing

ITR-1 ASSiST

CA Assisted ITR-1 Filing
₹1000
490
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

ITR-2 ASSiST

CA Assisted ITR-2 Filing
₹1600
990
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

ITR-3 ASSiST

CA Assisted ITR-3 Filing
₹2000
1490
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

ITR-4,5 ASSiST

CA Assisted ITR-4 or 5 Filing
₹3000
1990
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

ITR-6 ASSiST

CA Assisted ITR-6 Filing
₹3800
2490
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

ITR-7 ASSiST

CA Assisted ITR-7 Filing
₹4500
2990
  • CA Assisted ITR Filing
  • Tax Computation
  • Basic CA Consultancy
Best Selling

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When a business has offices or production centres located in multiple states, then each unit must get a separate GSTIN. However, branches within a state may register for separate GSTINs if required.

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