ITR stands for Income Tax Return. The Income Tax Act, 1961 governs all the ITR forms and procedures to be followed.
The due date for filing ITR by taxpayers not covered under audit is extended from 31st July 21 to 30th Sep 21, for Tax audit cases it is extended to 30th Nov 2021 and for transfer Pricing cases, the due date is extended to 31st December. The due date to file a Belated or Revised Return is extended from 31st Dec 2021 to 31st Jan 2022.
CBDT has notified all the Income Tax Return Forms (ITR Forms) for the AY 2021-22 with minimum changes in ITR Form 1 to ITR Form 7.
Income Tax department has introduced JSON utility and discontinued Excel and Java version of utilities from the AY 2021-22.
What is ITR?
Income Tax Return (ITR) is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department.
The Income Tax department has notified 7 various forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date.Every taxpayer should file his ITR on or before the specified due date. The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned and the category the taxpayer like individuals, HUF, company, etc.
Why should you file ITR?
It is mandatory to file income tax returns (ITR) in India if any of the conditions mentioned below are applicable to you:
1. If your gross annual income is more than the basic exemption limit
2. If you want to claim an income tax refund from the department.
3. If you have earned from or have invested in foreign assets during the FY.
4. If you wish to apply for visa or a loan
5. If the taxpayer is a company or a firm, irrespective of profit or loss.
Which ITR to file?
ITR-1
Resident Individuals having income is less than 50 lakhs from:
- Pension/Salary
- Income from Other Sources
- Income from House Property
ITR -2
Assessee having Income from :-
- Residents individuals having income more than 50 Lakhs
- Income from Capital Gains
- Income from more than one house property
- Assessee having Foreign Income / Foreign Assets
- Assessee having directorship in a company
- Asssessee holding unlisted equity shares
ITR-3
Assessees having income from:-
- Income from ITR-2
- Income from Business / Profession
- Income from partnership firm
- Presumptive income more than 50 Lakhs
ITR-4
Assessees having income from:-
Every income from ITR-1, presumptive Income under:
- Salary / Pension
- Other Sources
- One House Property
and having Total Income is more than 50 lakhs
ITR-5
Assessees who are:-
- Firms
- Limited Liability Partnership Firm
- Association of Persons (AOP)
- Body of Individuals (BOI)
ITR-6
Companies who are not claiming the exemption under section 11 of Income Tax Act 1961
ITR-7
Assessees who are registered under:-
- Section 139 (4A)
- Section 139 (4B)
- Section 139 (4C)
- Section 139 (4D)
Salaried taxpayers or businesses where excess taxes are withheld, filing of returns would be mandatory to claim the refund of excess taxes.
At the time of lodging an application for processing of a house or auto loan, bankers seek the copies of tax returns filed to verify the individual’s sources of income and give preference to them.
The tax return filing ensures in smooth processing of VISA applications as immigration authorities then deem the individual as tax-compliant.
The income tax return serves as a proof of income for assessees be it Salaried or self-employed taxpayers with detailed break-down of income and expenses incurred by these individuals during any financial year.
All Inclusive Pricing - No Hidden Fee
