INDIA TAXATION

Who all need file Income Tax Returns?

The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. Every Income Tax Return Form is applicable to a certain section of the Assessees. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee.

Company

Every Body corporate carrying on Business or Profession has to compulsory file Income Tax Return. Small & Medium segment Corporates (SME’s), Large Corporates, MNC’s & Foreign Entities with Indian office can file their Tax Returns.

Due Date of Filing Return

  1. Company Registered under Companies Act 2013 – 30 Sept

ITR Form Prescribed by the Income Tax Department

  1. ITR Form 6 – Company only. (Applicable for all sources of Income)

Salaried

Every Individual having Gross Total Income above Rs 2,50,000 has to compulsory file Income Tax return. Exemption for salaried Individual- Income Tax department has exempted the Return filing for a salaried person if their net taxable Income does not exceed Rs 500,000 however the exemption is available only in the case where the total Income includes Income only from Salary and saving Bank A/c interest up to Rs 10000

Due date of filing return of Salaried Individual is 31 July of the relevant Assessment Year

ITR Form Prescribed by the Income Tax Department

a)      ITR Form 1 – Individual/HUF only (Income from Salary, Income from House Property and income from other Sources

b)     ITR Form 2 – Individual/HUF only (who cannot file ITR 1 and their total income does not include any income chargeable to Income Tax under the head Profit & Gains From Business and Professionals)

Proprietorship

Every Individual carrying on a business having Gross Total Income above Rs 2,50,000 has to compulsory file Income Tax Return. An individual having Manufacture business /Wholesale /Retail trade /Franchisee distribution /Contractors / Advertising or any other Business can submit their tax returns.

Due Date of Filing Return

a)      If Gross receipts or Total Turnover up to  1Crore – 31 July

b)     If Gross receipts or Total Turnover above 1 Crore – 30 Sept

c)      If Gross receipts or Total Turnover up to 2 Crore and Provision of 44 AD of Income Tax Act not followed (Presumptive Taxation) – 30 Sept

ITR Form Prescribed by the Income Tax Department

a)      ITR Form 4 – Individual/HUF only (deriving income from a proprietary business)

b)     ITR Form 4S – Individual/HUF only (deriving business income and such income is computed in accordance with special provisions referred to in section 44AD and section 44AE of the Act for computation of business income)

c)      ITR Form 3 – Partner in the firm. (Income chargeable to income-tax under the head “Profits or gains from business” does not include any income except their income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm)

Individual Professionals

Every Individual carrying on profession having Gross Total Income above Rs 2,50,000 has to compulsory file Income Tax Return. Consultants working in corporates, Professionals, Free Lancers, Insurance & Postal Agents, Stocks& MF Advisors can submit their Tax returns.

Due Date of Filing Return

a)      If Gross receipts up to 50 Lacs – 31st July

b)     If Gross receipts or Total Turnover above 50 Lacs – 30 Sept

 

ITR Form Prescribed by the Income Tax Department

a)      ITR Form 4 – Individual only. (being professional)

b)     ITR Form 3 – Partner in firm .( Income chargeable to income-tax under the head “Profits or gains from profession” does not include any income except their income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm)

 

Partnership Firm

Every Partnership Firm carrying on Business or Profession has to compulsory file Income Tax Return. Business units/Service providers (Like CA’s/CS’s/Advocate/Architects/Valuer’s/others) registered as a Partnership Firm/LLP can file their Tax Returns.

Due Date of Filing Return

a)      If Gross receipts up to 15 Lacs for Professional Firm and Gross Turn Over up to 1 core business Concern – 31 July

b)     If Gross receipts above 15 Lacs for Professional Firm and Gross Turn Over above 1 Crore Business Concern – 30 Sept

ITR Form Prescribed by the Income Tax Department

  1. ITR Form 5 – Partnership Firm only. (Applicable for all sources of Income)

Trust Society

Every Trust or Society deriving Income from property held under Trust for Charitable or Religious Purpose, If the Income without the giving the benefit of exemption exceeds the amount not chargeable to tax then every Trust / Society has to compulsory file the Tax Return.

Due Date of Filing Return

a)      Where accounts of the assessee are required to be audited – 30 Sept

b)     Any Other case – 31 July

ITR Form Prescribed by the Income Tax Department

  1. ITR Form 7 – Trust /Society