WHAT IS AN INCOME TAX RETURN?
An income tax return is proof of a person about income earned during the financial year. ITR is filed in various types of forms applicable at the persons to the income tax department.
TYPES OF FORMS FOR ITR:
The following category of individuals will file ITR-1
- Salary/pension income
- Income earned from other sources
- Agriculture income less than RS 5000.
If a person's annual income is more than RS 50 lakh or owns Foreign Assets, or has an Agriculture income of more than RS 5000, or if income from a business or profession, then that person will not file ITR-1,
The following category of individuals will file ITR-2
- Income more than RS 50 Lakh
- Agriculture income of more than RS 5000
- A person already a director in the company
- Income earned from salary/pension/house property/lottery/horserace/capital gain/foreign income.
The following category of individual/HUF will file ITR-3
- Income earned from business or profession
- An individual already a director in the company
- Income earned from partnership firm
- Income from house property/salary/pension/other sources.
ITR-4 is also known as a presumptive income scheme.
Following category of individual/HUF/partnership firm will file ITR-4
- If the assessee chooses a presumptive income scheme under 44AD, 44ADA, or 44AE.
- If income pertains to business and profession
- If turnover is not more than Rs. 2 crore
The following category of persons will file ITR-5
- Body of individual
- Co-operative society
- Local Authorities
- Artificial judicial persons
- Investment fund
- Business trust.
ITR-6 : -
This form can only be filed by the company (except those companies who claim benefit under section 11)
Under Section-11: those companies whose income only pertains to charitable and religious purposes.
If a person falls in the following section under the income tax act, then that person will file ITR-7.
- Section 139(4A):- individuals who hold the property for religious or charitable purposes.
- Section 139(4B) :- any political party
- Section 139(4C):- associations or institutions falls under sec. 10(23A) and 10(23B) News agencies, educational institutions, medical institutions, and scientific research agencies.
- Section 139(4D):- other institutions, colleges, and universities that are not required to file a return of income under any other provision of this section.
Due Dates For Filing Of ITR
- Individuals whose accounts are not required to be audited = 31st July 2023
- Individuals whose accounts are required tax audited = 30th September 2023
- In case of independent audit = 31st Oct. 2023
- (whose accounts are audited under any other act)
Penalty for non-filing ITR
- In case of taxpayers where total income is below Rs 5 lakh, then late fees will be under section 234F RS 1000,
- For taxpayers with more than Rs 5 lakh, late fees will be under section 234F RS 5000 up to 31st December 2023, and after 31st December, late fees will be RS 10000.
- 1% interest also pay for the month or part of the month under section 234A.