Income Tax Returns

Income Tax Return is the form in which an assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.[1]

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year.[2] These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.

Filing of Income Tax Returns: Obligation by Law

Individuals who fulfill any one of the following conditions should by law file their Income Tax Returns during a financial year:[3]

Due Date for filing returns

The due date for filing Income Tax for year FY 2014-15 was extended to 07-Sep-2015[4]

ITR-1 SAHAJ

ITR-1 SAHAJ form is an essential Income Tax Return form for Indian citizens filing their tax returns with the Income Tax Department. This form is issued by the Income Tax Department of India and is an integral part of the rules laid down by the Government of India for filing Income Tax Returns.

Eligible individuals for ITR-1 SAHAJ

Individuals who have earned their Income for a Financial Year only through the following means are eligible to fill the ITR-1 SAHAJ form.[5]

In case of clubbed Income Tax Returns, where a spouse or a minor etc. is included in the tax returns, this can be done only if their income too is limited to the specifications laid down above.

Non-eligible individuals for ITR-1 SAHAJ[6]

Individuals who are not eligible to fill the ITR-1 SAHAJ form are those who have earned Income through the following means:[5]

Submission of ITR-1 SAHAJ form

The form can be submitted physically at any Income Tax Returns Office. An Acknowledgment Receipt can be obtained upon submission.

In case of Electronic Filing[7] of the form there are two alternatives. Firstly, if a Digital Signature is obtained, the Form is uploaded online. Secondly, the Form is downloaded, printed, signed, and a copy of the acknowledgement is sent by post to the Income Tax Department’s office in Bengaluru.

ITRV can now be verified online[8] Using Aadhaar Card or Electronic Verification Code (EVC).[9] The EVC can be generated either via One Time Password sent to email and registered mobile number (if income is less than INR 5 Lakhs) or via Net Banking. After online verification Income Tax Assesses is not required to send ITRV to Bangalore CPC.

ITR-3 Form

The ITR-3 Form particularly applies to those Individuals and Hindu Undivided Families who are registered as Partners in a firm. As per Rule 12 of the Income Tax Rules, 1962, this form does not apply to those who are Proprietors of a firm. It is mainly for the business which includes partnership deals. It is also applicable for professionals but it should be a partnership profession.

Eligible Assessees for the ITR-3 Form

The eligibility criteria of every Income Tax Return form are governed by a set of rules and conditions. The ITR-3 Form is applicable only to those Individuals and Hindu Undivided Families that can be placed under the following categories

If the partner of a firm only earns income from the firm as a share in the profits and not by any other means such as interest, bonus, salary, remuneration, or commission etc. then such an Individual or Hindu Undivided Family should file Income Tax Returns using only the ITR-3 Form, and not the ITR-2 Form.

Non-eligible Assessees for the ITR-3 Form

Individuals and Hindu Undivided Families who are not eligible to fill the ITR-3 Form are those who have earned Income through a Business or Profession operated as a Proprietorship firm.[10] Assessees, who apart from being a partner in a firm, also have sources of income from a business or profession, including the speculation market, are also not eligible to file their Income Tax Returns through this form.

References

  1. ↑ "DYK: Last date to file a belated income-tax return for FY14 is 31 March 2016", Live Mint, 27 February 2016
  2. ↑ "INDIAN INCOME TAX RETURN" (PDF). Government of India - Income Tax Dept.
  3. ↑ "File Income Tax Return". Government of India - Income Tax Dept. Retrieved 2012-10-29.
  4. ↑ "Last date for filing income tax returns extended to August 31".
  5. 1 2 "Instruction of SAHAJ Income Tax Return" (PDF). Government of India - Income Tax Dept. Retrieved 2012-10-29.
  6. ↑ "Income Tax Return ITR-1 (SAHAJ) - Filings Steps - ActRules". 2016-07-07. Retrieved 2016-09-19.
  7. ↑ "Tips on filing I-T returns". DNA India. 25 July 2012. Retrieved 2012-11-03.
  8. ↑ "How to do Electronic Verification of ITRV". IncomeTaxReturnIndia. 20 July 2015. Retrieved 2015-07-29.
  9. ↑ "Done Filing Your IT Returns Yet". Blogger. 27 July 2015. Retrieved 2015-08-08.
  10. ↑ "INDIAN INCOME TAX RETURN" (PDF). Government of India - Income Tax Dept. Retrieved 2012-11-20.

External links

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