Income Tax Returns- An Overview

Income Tax Return (ITR) is a form used to declare the net tax liability, claiming of tax deductions, and to report the gross taxable income. Income Tax Filing is mandatory for individuals who earn a certain amount of money have to File IT Returns. Filing an income tax return is an important compliance requirement, and failure to do so may result in penalties and legal consequences.

For income made in Financial Year 2022-23, the last date to file an ITR (Income Tax Return) will be 31st July, 2023. For taxpayers having an annual income less than Rs 5 lakh, the late fee is Rs. 1000 while for others it is Rs. 5000.

Our team of experienced tax professionals can assist you in the income tax filing process, ensure compliance with all Indian tax laws and regulations, and help you make the most of available tax deductions and credits. Contact us today to learn more about our income tax filing services!

Types of ITR/ Income Tax Filing

There are several types of income tax returns in India, depending on the type of taxpayer and the sources of their income. The main types of income tax returns in India are:

1. 1. ITR-1 (SAHAJ): The form must be used by individuals who make an annual income of less than Rs.50 lakh via pension or salary and from only one house property.
   2. ITR-2: The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties, and from foreign sources. However, the income of the individual must be more than Rs.50 lakh.
   3. ITR-3: This form is for individuals and Hindu Undivided Families (HUFs) who are partners in a firm or Association of Persons (AOP) and have income from business or profession.
   4. ITR-4 (SUGAM): Individuals who are under the presumptive taxation scheme must use this form. In order for individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.
   5. ITR-5: This form is for firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), and Artificial Judicial Persons who have income from business or profession.
   6. ITR-6: This form is for companies, other than companies claiming exemption under section 11 of the Income Tax Act.
   7. ITR-7: This form is for individuals and entities who are required to file returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. In case entities are claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.