Monday, March 21, 2016

What is Income Tax Return (ITR)

There is a prescribed form through which the particulars of income earned by a person, and the taxes paid thereon, are communicated to the Income Tax Department. There are different forms for the filing of returns based on different status and heads of income. This is called the return of income.

It’s basically just you telling the government how much you’ve earned, from where you’ve earned it, and how much tax you’ve paid on it.

Tax Forms:

The different forms which have been prescribed for different classes of taxpayers are as follows:
ITR Form Name
Description of Taxpayer
ITR – 1
This is applicable to all individuals having salary or pension income or income from one house property, or income from other sources (which aren’t income from lottery winnings and income from race horses). This is also known SAHAJ.
ITR – 2
This is for Hindu Undivided Families that have income from sources other than “Profits and Gains of Business or Profession”.
ITR – 3
This is for Hindu Undivided Families or individuals who are partnered in a firm. The income here is either by the way of interest, salary, bonus, commission or remuneration that’s due or received from the partnered firm. The head of income should be “Profits and Gains of Business or Profession”.
ITS – 4S
This is for individuals and Hindu Undivided Families who’ve opted for the presumptive taxation scheme of Section 44AD / 44AE. This is also called SUGAM.
ITR – 4
This is for individuals or Hindu Undivided Families who carry on a proprietary business or profession.
ITR – 5
This is for firms, LLPs, AOPs, BOIs, artificial judiciary persons, co-operative societies and local authorities. This does not apply to trusts, political parties, colleges, etc. who are required to instead file return of income under Sections 139(4A), 139(4B), 139(4C) and 139(4D) and do not use this form.
ITR – 6
This for companies that don’t claim exemptions under Section 11. Charitable and religious trusts can claim exemptions under Section 11.
ITR – 7
This is for persons and companies who are required to furnish returns under Sections 139(4A), 139(4B), 139(4C) and 139(4D).
ITR – V
This is the acknowledgement of filing of return of income.
 

One can acquire these forms from http://www.incometaxindia.gov.in.

You can also file your return electronically through a free software that the Income Tax Department has provided on www.incometaxindiaefiling.gov.in.