Income Tax Returns
Income Tax Filing has to be done by all parties (individuals or companies) if earning is above a specific threshold.
Individuals and NRIs are required to file income tax return, if their income exceeds Rs.2.5 lakhs per annum.
Proprietorship firms and partnership firms have to file income taxes regardless of amount of profit or loss.
All companies and LLPs have to file income taxes irrespective of turnover or profit.
Types of Income Tax Returns (ITR)
Eligibility – ITR-1 form can be used by Individuals with less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only. |
Eligibility –
ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house property, income of more than Rs.50 lakhs.
Eligibility –
ITR-3 form must be filed by individuals who are professionals or persons who are operating a proprietorship business in India.
Eligibility –
| ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income. |
Eligibility –
| ITR-5 form must be filed by partnership firms, LLPs, associations and body of individuals to report their income and computation of tax. |
Eligibility –
ITR-6 form must be filed by companies registered in India.
Eligibility-
ITR-7 form must be filed by entities claiming exemption as charitable/religions trust, political parties, scientific research insitutions and colleges or universities.
Income Tax Returns – Late Filing Penalties
Taxpayers who do not file their income tax return on time are subject to a penalty as follows:
Income Tax Return Due Date
The due date for income tax return filing is 31st July of every year for individual taxpayers.
The due date for income tax return filing for companies and taxpayers requiring tax audit is 30th September.
Documents Required For Income Tax Returns
- PAN Card
- Form 16
- Bank Statements
- Form 26AS
- Proof of Investments
- Proof of Assets Owned
- Proof of All Sources of Income