Income Tax Return for Individuals
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Income Tax Return for Individuals
Every person earning an income above a certain amount is subject to income tax. The income could be under various heads like salary, rent or business or professional income. The tax subjected on these incomes is called the income tax.
A simple form is to be filed as a statement of income earned with the Income Tax Department. It is organized in such a way that calculating tax liability, scheduling tax payments, or requesting refunds for the overpayment of taxes has been made quite easy for the taxpayers. The taxpayers must first determine the type of Income Tax Return (ITR) Form they need to fill.
Process of ITR Filing for Individuals
Get Expert Advice:
You can get expert advice on Income Tax Return filing.
Document submission and verification:
Once you submit the documents required, our experts will do the paperwork.
Filling Return
We will file the documents with the Income Tax Department.
Completion of work
Once your work is done, we will send you the documents back.
Documents required for ITR Filing
- Form 16 (Taxpayers having salary income)
- Bank Statements
- Details of Investments (Optional)
- Details of Insurance & Loans (Optional)
- PAN Copy (Optional)
- Aadhaar Copy (Optional)
Types of ITR for Individuals
- Form ITR-1 (Sahaj) -- For individuals earning income from salaries, house property, interest income, agriculture, other sources, etc. The due date of this return is 31st July of every year.
- Form ITR – 2 -- For Individuals and HUFs having income other than from profits and gains of business or profession. It might be from capital gain, lottery or foreign assets, etc. The due date of this return is 31st July of every year.
Penalties for Late Filing/Default in Filing of ITR
- In case if you file your return after 31st July but before December, a penalty of Rs. 5000 will be levied. For ITR filed after December, the penalty will be Rs. 10,000.
- However to provide relaxation to small taxpayers; the IT department has stated a maximum penalty of only Rs. 1,000 will get levied subject to condition that your total income is less than Rs 5 lakh.
- If the taxpayer fails to furnish ITR within the due date, he will be liable to pay penalty same as delayed filing.
Packages
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Expert Consultancy
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Expert Consultancy
Basic
What's included
- Income Tax Return Filing
- Computation of Income
- Expert Consultancy
Frequently asked questions
Who is required to pay Income Tax?
Every person or entity is liable to pay tax in India if his total income is more than the income notified by the government in the slab rates.
1. Individual – Salaried, Self-employed or Professional
2. Hindu Undivided Family (HUF)
3. Company
4. Firm
5. Association of Persons (AOP)
6. Local Authority
7. Artificial Juridical Person
8. Body of Individuals (BOI)
9. Political Party
10. Educational or medical institution
11. Trade Union, etc.
What is the due date of ITR for individuals?
The due date for filing all ITRs is 31st July for Individuals. After this deadline, tax returns would be as a “Belated Return” any time before 31st March.
How to File ITR?
The ITR can be filed both physically & electronically. For e-filing, download the government utility from the Income Tax portal (in excel format or java utility). Complete all the fields with the information required, pay the taxes due and generate the XML. You can upload this XML on the government portal by logging into your account. Once the XML has been uploaded, download the acknowledgment in ITR-V. This ITR-V can be verified, either by using EVC code or can be sent by courier to CPC Bangalore for further processing.
What is 26AS & why it is required?
26AS is a consolidated statement showing various taxes that are deducted from your income by your employer, bank, or your tenant. It shows how much tax has been received by the government by way of TDS deposited by the deductor (employer, bank), advance tax or any self-assessment tax that has been paid, etc.
It also contains the details of income tax refunds that you might have received. It also shows AIR (Annual Information Return) transaction details, which might have been filed by your bank in case you have entered into some specified transaction. You must match tax payments and TDS deducted with 26AS before filing your ITR to get a tax credit as the tax credit is given only on the items appearing in our 26AS.
Who is required to File ITR-1 (Sahaj)?
ITR-1 is to be filed by Resident Individuals having income less than 50 Lakhs from:
1. Income from Salary/Pension; or
2. Income from a Single House Property (excluding cases where loss is brought forward from previous years); or
3. Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
4. Agricultural income up to Rs.5000.
Who cannot use Form ITR-1?
- Total income exceeding Rs 50 lakh
- Agricultural income exceeding Rs 5000
- If you have taxable capital gains
- If you have income from business or profession
- Having income from more than one house property
- If you are a Director in a company
- If you have had investments in unlisted equity shares at any time during the financial year
- Owning assets (including financial interest in any entity) outside India) if you are a resident, including signing authority in any account located outside India
- If you are a resident not ordinarily resident (RNOR) and non-resident
- Having foreign assets or foreign income
- If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.
Who is required to File ITR-2?
ITR 2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income includes:
- Income from Salary/Pension; or
- Income from House Property; or
- Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
(Total income from the above should be more than Rs 50 Lakhs)
- If you are an Individual Director in a company
- If you have had investments in unlisted equity shares at any time during the financial year
- Being a resident not ordinarily resident (RNOR) and non-resident
- Income from Capital Gains; or
- Foreign Assets/Foreign income
- Agricultural income more than Rs 5,000
Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
Who cannot use Form ITR-2?
This Return Form should not be used by an individual whose total income includes Income from Business or Profession. For declaring these types of Income, you may have to use ITR-3 or ITR-4.
What is the penalty for late filing or default in filing of ITR?
In case if you file your return after 31st July but before December, a penalty of Rs. 5000 will be levied. For ITR filed after December, the penalty will be Rs. 10,000. However to provide relaxation to small taxpayers; the IT department has stated a maximum penalty of only Rs. 1,000 will get levied subject to condition that your total income is less than Rs 5 lakh. If the taxpayer fails to furnish ITR within the due date, he will be liable to pay penalty same as delayed filing.