Quick Guide for Income Tax Return Filing

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  • Income Tax Return Filing

Income Tax Return is generally abbreviated as ITR which is mandated for filing each financial year to every person or entity that earns income from one or another source. The said person is represented as assessees in categories of Individuals / Firms / Companies / LLP and other similar categories of business forms. These business forms need to comply with the provisions of Income Tax Act, 1961 which make it obligatory to file information about his or her income earned in respective financial year (F.Y.) that starts with April and ends in March. The income tax return for any financial year is filed in respective assessment year (A.Y.) for given F.Y. 

To understand in simple terms if an Individual starts earning income through Salary in year 2017, the period considered for ITR Return filing would be April, 2017 to March, 2018 at respective due dates specified in Income Tax Rules.

As already mentioned, ITR is all about filing information of income earned by the person or entities as applicable. There five heads with respect to type of income earned by various assessees which are classified below:  

  • Income from Salary Income 
  • Income from House Property 
  • Income from Business and Profession 
  • Income from Capital Gains 
  • Income from Other Sources

Since assessees constitute both natural persons being Individual as well as artificial persons being companies/ LLPs/ Firms/ Trusts various other forms the Government has prescribed. The form in which ITR is filed varies based on category of person and source of income. For example, as per Income Tax Rules every company needs to file form ITR-6 on the due date specified therein.

Following is the gist of various forms to be filed by respective categories of assessees based on source of income as specified above:

ITR FORM TYPE OF INCOME EARNED 
ITR-1 Income earned by Individual from Salary or Pension Income, Income from one House Property and Income from other sources like FD interest income, interest earned from other securities, provided total of all mentioned incomes do not exceed Rs. 50 lakhs. 
ITR-2 All above incomes included in details of ITR-1 as well as income from capital gains, income earned from outside India, income earned being partner in firm and agricultural income of more than Rs. 5,000/-. The same can be filed by Individuals and HUFs. 
ITR-3 To be filed by individuals or HUFs who have income from Proprietary business or carrying on any business or profession including income from house property, salary and other sources income. 
ITR-4 To be filed by individuals and HUFs who have settled to follow presumptive income taxation scheme which is governed under Section 44AD, Section 44ADA and Section 44AE of Income Tax Act. 
ITR-5 To be filed by Firms/ LLPs/ AOPs (Association of Persons) and BOIs (Body of Individuals) 
ITR-6  To be filed by all companies except companies claiming exemption under Section 11 which governs income earned from religious and charitable purposes 
ITR-7 To be filed by entities referred under Section 139(4A), 139(4B), 139(4C) and 139(4D). 

 

While filing ITR, the most crucial factor is the date up to which return can be filed being compliant and to avoid any interest and penalties levied by Income Tax Department when returns are filed after the due date.

As per the provisions of Income Tax Department following are due dates for various categories of entities for filing of ITR:

DUE DATE APPLICABLE FOR: 
Up to 31st July of next year  

(For F.Y. April, 2017March 2018, the due date would be 31st July, 2018)  

Individuals, LLP, HUF, BOI and AOP (who does not fall under the audit provisions)
Up to 30th September of next year  

(For F.Y. April, 2017March, 2018, the due date would be 30th September, 2018) 

Companies including other entities on which Audit provisions are applicable 

 

 

With recent amendments made by Finance Ministry we would like to bring following material information to your notice to avoid any adverse consequences: 

Last date to file Income Tax Return for F.Y 2015-16 and F.Y 2016-17 is 31st March, 2018. Hence, if the same is still not filed, please ensure the filing before the period ends. Legalwiz.in may help you to fulfill this requirement ensuring hassle-free compliance.

Further, while talking about “income”, it is indispensable to mention that an assessee in his day to day life liquidate some funds which are absolutely necessary for making a living like payment for insurance premium, interest on housing loans, mediclaim, interest on higher education loans as well as to enhance income growth investments are made in various schemes like FDs, Mutual Funds, NSCs, Government Bonds, Equity Shares, PF, EPF and various other schemes.

We are happy to share that such payments and investments are eligible to be deducted from liability of taxes on income earned by assessee under section 80C to 80U of Income tax Act, subject to various conditions which should be complied mandatorily to avail the benefits of reducing income and further tax burden for all assessee.

About the Author:

Shrijay Sheth
Shrijay, co-founder of LegalWiz.in, is best known for his business acumen. On this platform, he shares his experiences backed by a strong understanding of digital commerce businesses. His more than a decade-long career includes a contribution to some of the highly successful startups and eCommerce brands across the globe.

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