As a taxpayer, your responsibilities do not end with paying your taxes in time. In fact, there are some other requirements that you would have to comply with after paying taxes as well. One of those requirements is the filing of Income Tax Returns or ITR. Failing to adhere to the ITR filing despite paying all your taxes in time can lead to unnecessary troubles with the IT department, such as major fines. Let’s read on further to learn about income tax form, which is helpful is filing tax returns.
Income Tax & ITR: Meaning
Income tax is the amount of tax paid by an individual or organisation on their annual income determined at the end of every financial year. People can make income tax payments online, including TDS/TCS payments.
The Income Tax Act was passed in 1961 by the Ministry of Law. However, it came into force on April 01, 1962. Since then, many amendments have been made to match the current economic situation better. Every year, the union budget also adds and enhances some important income tax regulations based on which the income in the following financial year will be taxed.
At present, there are five main types of income these are:
- Income from house property
- Income from salary
- Income from capital gains
- Income from profits or gains from business or profession
- Income from other sources
ITR (Income Tax Return), on the other hand, are forms through which taxpayers file information regarding their annual income and the tax applicable to the income tax department. Only after filing this form can an individual claim any refunds for the tax they already paid as TDS deductions. Moreover, ITR also helps an individual to calculate the tax liability. There are different types of forms available at the income tax site. To understand this better, we need to understand what these forms are and to whom they are relevant.
Different Types of Income Tax (ITR) Form
There are different types of ITR forms depending on the taxpayer’s income type and category. Therefore, it is important to be cautious while choosing a tax return form to file your tax return. In order for you to avoid making mistakes, we are here to give you a comprehensive understanding of different types of tax return forms.
ITR 1 or SAHAJ Form
Income tax form 1 is for resident individuals whose total income includes-
- Income from one property.
- Income from salary or pension.
- Agricultural income up to Rs 5,000.
- Income from other sources (excluding income from horse races and winning a lottery).
For individuals or Hindu Undivided Family (HUF)
- Income from salary/pension.
- Income from house property.
- Income from other sources (including income from races or lotteries).
- Total income from above should be more than Rs. 50 lakhs.
- Income from capital gains.
- If you are a Director in a company.
- Foreign assets and foreign income.
- Agricultural income of more than Rs. 5,000.
- If you have an investment in unlisted equity shares during the financial year.
- Being a resident but not an ordinary resident (RNOR) and non-resident.
Income tax form 3 is for individuals/HUF who are partners in a firm without conducting any business with the firm,
- Income from house property/salary/pension/other sources
- Director of a company
- Income of a person as a partner in a firm
- Individuals carrying on business or profession
- Income from unlisted equity shares
ITR-4 SUGAM Form
For individuals/HUFs, partnership firms (other than LLPs). Taxpayers from other professions, like doctors, shopkeepers, designers, contractors etc., can also file ITR using income tax form 4.
- Individuals earning income from businesses under section 44AD or 44AE of the Income Tax Act.
- Income from salary/pension is up to 50 lakh.
- Income from one house property should not more than 50 lakhs.
- Income from other sources not having an income of more than 50 lakh (excluding income from horse races and winning a lottery).
- An applicant whose source of income is within India.
- Professional income under section 44ADA of the Income Tax Act.
Income tax form 5 is for business, firms, trusts, etc. and those who are eligible for partnership firms and LLPs.
- Cooperative societies
- Local authorities
- LLPs (limited liability partnerships)
- BOIs (Body Of Individuals)
- Investment funds
- Business trusts
- AOPs (Association of Persons)
- Artificial Judicial persons
- Estate of the deceased and the insolvent
For companies other than companies claiming exemption under section 11 can file their tax returns with income tax form 6.
- Incomes earned through housing property
- All companies other than companies claiming exemption under section 11
- Income from multiple sources
For individuals or companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) can go for income tax form 7.
- Section139(4A): Individuals who get income from properties held under trust for charitable or religious reasons.
- Section 139(4B): Political parties whose income exceeds the taxable limits.
- Section 139(4C): For news agencies, scientific research organisations, medical institutions, universities, etc.
- Section 139(4D): Colleges, universities and other institutions. However, they do not have to give the returns of income or losses.
- Section 139(4E): Business trusts do not have to disclose details of profit or loss.
- Section139(4F): Investments funds as per Section 115UB. The returns of income or losses need not be disclosed.
Income Tax Form 16
Income Tax Form 16 is a document that has all the details related to the deduction of tax at the source. It is issued by the employer on behalf of the employee. The tax collected by the employer by deducting employees’ salaries has to be deposited with the IT department. This certificate provides details of TDS/TCS of various transactions disclosed either by the employee or employer.
Income Tax Declaration Form
Form 12 BB is a statement of claims by an employee for the deduction of tax. The employee has to declare the investments he has made in that financial year using this form. However, this has to be submitted with the required documents. The salaried taxpayer can claim tax benefits or rebate on expenses and investments through this form.
Income Tax Challan Form
Income Tax Challan can be paid online on the official website of Income Tax of India. Challan 280 is an important Income Tax related form used for different types of Income Tax payments. Through Challan 280, you can clear all income tax dues of the previous and current year.
- Based on the types of income, the Income Tax Return Form that you will have to fill and submit will vary.
- The TDS deducted can be seen in Form 16.
- ITR 2 can only be filed by people whose income is more than Rs 50 lakh in one year.
It is important for every Indian citizen to understand and adhere to income tax procedures. Knowing which form to fill will ease the tax filing and paying process. Moreover, the income tax portal is constantly updated and improvised to automate the e-filing of income taxes. Ensure to declare your income and pay your taxes on time to avoid unnecessary litigation.
-Any individual or HUFs.
-Income from capital gains.
-Organizations under section 11 can claim tax exemptions because income collected from these bodies is used for charitable and religious purposes.
-Individuals earning from capital gains.
-Any salaried individual or HUF under ITR-1
-Those who are eligible for ITR-5.
-Hindu Undivided Families(HUF)
-Any individual filing ITR-1
-Those filing ITR-7
-Income from capital gains
-Owner of foreign asset
-Total income exceeding 50 lakhs
-A person with a foreign source of income
-Income from more than one property
-If you have signing authority of any account located outside India
-Being a resident but not ordinarily resident (RNOR) and non-resident
-If you have investments in unlisted equity shares in that particular financial year.
-If you are an assessee with respect to the income of another person whereby tax is deducted from the other person.
Individual with a business having a turnover of over 2 crores
Those who do not earn income from a business
If the taxable income comes in the form of salary, commission, interest, bonus, or remuneration.
-Individuals whose total income is from business or profession.
-Assessees with a total income lower than Rs. 50 lakhs.
-Agricultural income of more than Rs. 5,000
-Total income of more than 50 lakhs.
-Income from business or profession.
-Income from more than one house property.
-If you are a Director of a company.
-If you had taxable capital gains.
-If you are a resident, not an ordinary resident (RNOR) and non-resident.
-If you had investments in unlisted equity shares in that particular financial year.
-Having foreign income and foreign assets.
-Owning assets outside India. Although you are a resident but have signing authority in any account located outside India.
You can download it from the official Income Tax Department website:
1. Visit the official website of the Income Tax Department.
2. You will find the ‘Income Tax Forms’ option under the ‘Forms/Downloads’ section. Click on it.
3. Next, you will find the ‘PDF’ and ‘fillable form’ options under Form 16.
4. Click on the relevant option to download the form.
ITR-1 is filed by individuals who derive their income from rent, interest, or salary. On the other hand, the ITR-4S form is for people who opt for the Presumptive Taxation Scheme and derive their income from salary, rent, or interest as well.
Yes, salaried individuals who are not earning more than ₹50 lakhs can file their tax returns under ITR-4. Under section 44ADA, it has been expanded also to cover independent professionals.
Individuals and HUFs with income from a profession or business can file ITR-3. However, if an individual has opted for a presumptive taxation scheme under section 44AD/ADA/AE and has an income of more than Rs. 50 lakhs from salary or house property, they cannot file their tax returns under ITR-3.
On the other hand, resident individuals/firms/HUFs have income up to Rs. 50 lakhs in any financial year from profession or business and have opted for presumptive taxation scene 44AD/ADA/AE can file for ITR-4.