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INCOME TAX RETURNS

ITR Filling is a yearly occasion relevant for a wide range of citizens whether it is an organization, LLP or Individual. The salary is burdened distinctively dependent on kind of citizen. We have made easy to comprehend bundles for annual assessment form documenting. If it's not too much trouble note these are not programming access expenses but rather a genuine CA Assisted ITR Filing Service


6 Benefits Of Filing Income Tax Returns


1. Filing ITR avoids penalties


Effective from FY 2017-18, the Income Tax Department levies a penalty of Rs 10,000 under section 234F on individuals who do not file their income tax return. Filing ITR on time avoids unnecessary penalties. Even though the penalty has been kept at Rs 1,000 if your annual income is not more than Rs 5 lakh, as a law-abiding citizen, it is your duty to file your tax returns.

2. ITR receipt is a very important document


You need to preserve ITR receipts carefully as they are very important proof of your income and of payment of your taxes. It is much more detailed than Form 16. It contains your total income details and has details of your income from other sources.

3. ITR receipt is a useful document for hassle-free processing of bank loans


Most banks and NBFCs ask for ITR receipts of the latest three years when you apply for high-value loans like home and car loans. Lenders consider ITR as the most authentic document supporting an individual’s income. Hence, you should regularly file income tax return if you are planning to avail home or car loans in the future.

4. Visa processing


Embassies of developed countries like the United States, United Kingdom, Canada, and Australia ask for ITR receipts of the past years to process your visa application. They are very particular about your tax compliance and hence, you are asked to furnish past ITR receipts. This helps them assess your income and ensure that you are able to take care of the expenses on your trip.

5. Compensate losses in the next financial year


Individuals cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. As per the income tax law, individuals are not allowed to carry forward losses and set them off against future years’ income if the ITR is not filed within the due date. Hence, it is important to file your income tax return on time in order to claim the losses in future years.

6. Carry Forward Your Losses


If you file return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years




Head of Income Nature of Income covered
Income from Salary Income from salary and pension are covered under here
Income from Other Sources Income from savings bank account interest, fixed deposits, winning KBC
Income from House Property This is rental income mostly
Income from Capital Gains Income from sale of a capital asset such as mutual funds, shares, house property
Income from Business and Profession This is when you are self-employed, work as a freelancer or contractor, or you run a business. Life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers


DIFFERENT TYPES OF Income Tax Return FORMS

Income Tax Return-1


Also known as the Sahaj form, this income tax return form is to be filed solely by an individual taxpayer. Any other assesse liable to pay tax, is not eligible to avail of this form for filing their returns.

Income Tax Return-2A


Introduced in the assessment year 2015-16, The Income Tax Return-2A form is a new income tax return form. This form can be used by a Hindu Undivided Family (HUF) or an individual taxpayer.

Income Tax Return-2


The Income Tax Return-2 Form is a type of Income Tax Return form which is generally used by individuals who have accrued income through the sale of assets or property. Also, this form is useful for individuals who earn income from countries outside India. In most cases, individuals or Hindu Undivided Families (HUF) can avail of this form to file their Income Tax Returns.

Income Tax Return-3


The Income Tax Return-3 Form is useful for an individual taxpayer or a Hindu Undivided Family, who solely operate as a partner in a firm but who do not conduct any business under the firm. This is also applicable for individuals who do not earn any income from the business conducted by the firm.

Income Tax Return-4


This type of Income Tax Return form is useful for those individuals who conduct a business or who earn income through a profession. This form is applicable for all types of businesses, undertaking or profession, without any limit on the income earned. Taxpayers can also club any income they receive from windfalls, speculation, salaries, lotteries, housing properties etc., along with the income earned from their business.

Income Tax Return-4S


Also known as Sugam form, the Income Tax Return-4S form can be used by any individual or Hindu Undivided Family (HUF) for filing their income tax returns.

Income Tax Return-5


The Income Tax Return-5 form is used only by the following bodies to file income tax returns:
• Firms
• Limited Liability Partnerships (LLPs)
• Body of Individuals (BOIs)
• Association of Persons (AOPs)
• Co-operative Societies
• Artificial Judicial Persons
• Local Authorities

Income Tax Return-6


Except those companies or organisations that claim tax exemption as per Section 11, the Income Tax Return-6 form is used only by all companies. Organisations that can claim tax exemptions as per Section 11 are organisations in which the income received is accumulated from the property used for the purpose of religion or charity. This particular income tax return form is only available to be filed online.

Income Tax Return-7


Those individuals or companies that are required to submit their returns under the following sections are required to file their Income Tax Return through Income Tax Return-7:
• Section 139(4A) -Returns can be filed by individuals who receive income from any property that is held for the purpose of charity or religion in the form of a trust or legal obligation.
• Section 139(4B) - Returns are to be filed by political parties provided their total income earned is above the non-taxable limit.




Taxpayers and Income Tax Slabs

Taxpayers in India, for the purpose of income tax includes:
1. Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)
2. Firms
3. Companies
Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax of 30% of profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have four tax brackets each with an increasing tax rate.
The Union Budget 2020 introduced a new income tax regime with reduced tax rates for those willing to forego 70 tax-exemptions and deductions under it. This new tax system has been made optional and continues to co-exist with the old one that comprises of three tax rates and various exemptions and deductions available to a taxpayer. The new income tax slabs and rates have come into effect from April 1, 2020.
If a taxpayer has opted for the new regime, then his income will be taxed as per tax rates for Assessment year 2020-21

Total income (Rs) Income tax rate
Up to 2.5 Lakh Nil
From 2,50,001 to Rs 5,00,000 5 percent
From 5,00,001 to Rs 7,50,000 10 percent
From 7,50,001 to 10,00,000 15 percent
From 10,00,001 to Rs 12,50,000 20 percent
From 12,50,001 to 15,00,000 25 percent
Above 15,00,000 30 percent