INCOME TAX RETURNS

Income Tax Return (ITR) is a formal statement filed with the Income Tax Department of India to report income earned, tax liability, and tax payments for a financial year. Filing an ITR is a legal obligation for individuals and businesses whose income exceeds the prescribed limit under the Income Tax Act, 1961. Even those with no tax liability are encouraged to file returns, as it helps build financial credibility and opens access to various financial benefits.

Who Should File An Income Tax Return ?

• Individuals with annual income above the basic exemption limit (₹2.5 lakh for individuals below 60 years, ₹3 lakh for senior citizens aged 60–80, and ₹5 lakh for super senior citizens aged above 80).

• Businesses and companies (regardless of income or profit).

• Freelancers, consultants, and professionals with earnings above the threshold.

• Indivisuals and entities seeking a tax refund.

• Individuals with foreign assets or income.

• NRIs (Non-Resident Indians), if income earned in India exceeds the basic exemption limit.

• Partnership Firms and LLPs.

• Trusts, Societies, and Associations.

Even if your income is below the exemption limit, filing ITR can be beneficial for visa applications, applying for loans, carrying forward losses, or claiming TDS refunds.

Types Of ITR Forms 

Different ITR forms cater to different taxpayers. Some common forms include:

• ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources, and total income up to ₹50 lakh.

• ITR-2: For individuals and HUFs not having income from business or profession.

• ITR-3: For individuals and HUFs having income from a proprietary business or profession.

• ITR-4 (Sugam): For individuals, HUFs, and firms opting for the presumptive income scheme.

• ITR-5, ITR-6, and ITR-7: For firms, LLPs, companies, and trusts.

Choosing the correct ITR form is essential for accurate and valid filing.

Due Dates Of Income Tax Filings

• Individuals and non-audit cases: 31st July of the assessment year.

• Businesses requiring audit: 31st October of the assessment year.

• Transfer pricing cases: 30th November of the assessment year.

Filing before the deadline ensures you can claim benefits like loss carry-forward and refunds without penalties.

Penalty For Late Filing