Income Tax Return
Filing an Income Tax Return (ITR) is a legal obligation for individuals and entities in India with taxable income. Here's an overview of the Income Tax Return process:
Who Needs to File Income Tax Return:
1. Individuals:
a) Individuals with taxable income exceeding the basic exemption limit.
b) Individuals with gross total income above a specified threshold, even if no tax is payable.
2. Companies and Firms:
All companies and partnership firms are required to file income tax returns.
3. Other Entities:
Other entities like trusts, associations, etc., with taxable income.
4. Types of Income Tax Return Forms:
1. ITR-1 (Sahaj):
For individuals having income from salaries, one house property, other sources (interest, etc.), and total income up to ₹50 lakhs.
2. ITR-2:
For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
3. ITR-3:
For individuals and HUFs having income from business or profession.
4. ITR-4 (Sugam):
For presumptive income from business and profession.
5. ITR-5:
For firms, Association of Persons (AOP), Body of Individuals (BOI), and Limited Liability Partnerships (LLPs).
6. ITR-6:
For companies other than those claiming exemption under Section 11 (applicable for charitable trusts).
7. ITR-7:
For persons including companies required to furnish return under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D).