Income tax filing is mandatory compliance to a person including Individual, Partnership firms, LLP, Company, etc. to report their total income during a financial year and tax liability arising on the same. This eases the Government to collect the tax and incur more expenditure for the public welfare and also calculate the growth of the nation.
All businesses operating in India are required to file income tax return each year. In addition to filing income tax return, a business may also be required to file TDS return and pay advance tax to stay compliant under the Income Tax Act.
Who Is Required To File An Income-Tax Return?
The provision of the Income-tax Act,1961, has made the following person mandatory to file Income-tax returns:
- An individual, having total income exceeding the basic exemption limit (i.e., ₹ 2,50,000/) during a particular financial year
- Hindu Undivided Family (HUFs)
- Partnership firms and Limited Liability Partnerships (LLP)
- Any Private or Public company (including the foreign company) doing business in India
- A foreign company taking treaty benefit on a transaction in India
- Association of Persons (AOP)
- Body of Individual (BOI)
- A non-resident having any income source from India
- For assess, who wishes to claim a tax refund or carry forward losses under any head
- Individual, being an Indian resident, holding an asset or any financial interest in an entity situated outside India
- An Indian Resident, being a signing authority in a foreign account
Note: The basic exemption limit for an individual with age more than 60 years is Rs. 3,00,000/- and individual with age more than 80 years is Rs. 5,00,000/-
List of Documents for Income Tax Return Filing & Registration
Following are the documents required for Income Tax Return Filing & Registration:-
- Pan Card
- Bank Statment
- Form 16 & 16A
- Digital Signature Certificate
- Certificate of Incorporation like MOA, AOA in case of Private Limited Company or LLP Agreement in case of LLP Company
- PAN card of the Company/LLP (attested by the Company’s Director)
- Bank account details of the Company with a bank statement and cancelled cheque
- Proof of Registered Office along with a NOC from the premise owner
- Board Resolution or the Declaration of consent by the concerned Partner
- Address proof, PAN card and passport size photos with the signature of all the Directors
- Salary and attendance register
- Shop & Establishment Registration Details
TYPES OF INCOME TAX RETURNS
- ITR-1 Form Filing – Income Tax Return :- This ITR filing is for individuals whose income from Salary, Pension, House Property, or Other Sources upto INR 50 Lakhs.ITR-1 SAHAJ form is the most widely used form by Individuals to file their Tax Returns with the Income Tax Department of India. Individuals who have their income within ₹ 50 Lakhs and have earned their Income for the Financial Year through Salary or Pension, only one House Property and other sources excluding lottery, racehorses, legal gambling etc are eligible to file their IT Return using ITR-1. Assessees who have income from foreign assets, agricultural income that exceeds Rs. 5000, Income from Business or Profession and Income from more than one house property are not eligible to file using ITR-1 Form.
- ITR-2 Form Filing – Income Tax Return :- This return is for Individuals & HUF whose income is from salary, pension, house property, capital gains, foreign asset/income or other sources.The ITR-2 Form is an important Income Tax Return form used by Indian citizens, as well as Non Residents to file their Tax Returns with the Income Tax Department of India. Individuals who are not eligible to use ITR-1 can use the ITR-2 Form. Individuals and Hindu Undivided Families who have their Income for the Financial Year through Salary or Pension, more than House Property, Income from Capital Gains, Income from foreign assets/Income, Income from business or profession as a partner (not proprietor) and other sources including lottery, racehorses, legal gambling are eligible to file their IT Return using ITR-2. Individuals who are not eligible to file using ITR-1, because of their income exceeding ₹ 50 Lakhs, also need to file using ITR-2.
- ITR-3 Form Filing – Income Tax Return :- This income tax return is for Individuals & HUF having income from profit and gains of business or profession (PGBP).The ITR-3 Form applies particularly to those Individuals and Hindu Undivided Families who have income from carrying on a profession or from Proprietary business. If an Individual/HUF is having income as a partner of a partnership firm that is carrying out business/profession, he cannot file ITR-3. In such case, he is required to file ITR 2.
- ITR-4 Form Filing – Income Tax Return :- This ITR Filing is for Individuals or HUF who have income from PGBP but have opted for presumptive income scheme.The ITR-4 Form can be used by Individuals, Hindu Undivided Families who are running a business with turnover of less than ₹ 2 Crores and Professionals with gross receipts exceeding ₹ 50 Lakhs, provided they have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act.
- ITR-5 Form Filing – Income Tax Return :- This return is for Firms, LLPs, Body of Individuals (BOI) and Association of Persons (AOP).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.). Individuals, HUFs (Hindu Undivided Families), Companies cannot use the ITR-5 Form. Due date for filing the income tax return is 31st July.
- ITR-6 Form Filing – Income Tax Return :- This return is for all type of companies such as Public Limited Company, Private Limited Company, OPC, except Section 8 Company.ITR-6 Form can be used only by Companies. Only companies that are not claiming exemption under section 11 (Income from property held for charitable or religious purposes) can use the form to file their Tax Returns with the Income Tax Department of India. Due date for filing the income tax return is 30th September.
- ITR-7 Form Filing – Income Tax Return :-
- ITR-7 Form can be used by Companies, Firms, Local authority, Association of Person (AOP) and Artificial Judiciary Person that are claiming exemption as one the following
- Charitable /Religious trust under Section 139 (4A)
- Political party under Section 139 (4B)
- Scientific research institutions under Section 139 (4C)
- University or Colleges or Institutions or Khadi and Village industries under Section 139 (4D)
- Due Date for all Tax Assessees, whose accounts are required to be audited, is 30th September. Due Date for Tax Assessees, whose accounts are not required to be audited, is 31st July.
PF return Due Dates
- Individual 31st July
- For Companies & Persons who require tax audit under section 44AB, the last date of filing Income Tax Return is 30th September of next financial year
- Hindu Undivided Family (HUF) 31st July
- Body of Individual (BOI) 31st July
- Association of Persons (AOP) 31st July
- Businesses (liable for Tax audit) 30th September
- Businesses (liable for TP reporting) 30th November
