Personal Income Tax Returns
A Income tax return is referred to as a form or a variety of documents submitted to a taxation authority that discloses income, spending, and other relevant tax information. Tax returns make it easier for taxpayers to determine their tax due, set up a payment plan, and apply for refunds of taxes that have been paid in excess. Prior to filing their income tax returns, all taxpayers are required to choose the Income Tax Return (ITR) form type they will use. The form that needs to be completed simply depends on the taxpayer’s income, or in some situations, whether the person has assets outside of India or receives any type of income from outside India.
ITR-1: Person with annual incomes of less than Rs. 50 lakhs from salaries or pensions and only one residential property may use the ITR-1 form.
ITR-2: NRIs, directors of corporations, shareholders of private companies, and those with foreign income, capital gains, two or more residential properties, or income exceeding Rs. 50 lakhs must file ITR-2 forms.
ITR-3: Professionals and individuals running sole proprietorship businesses in India are required to file the ITR-3 form.
ITR-4: Taxpayers enrolled in the presumptive taxation system may submit an ITR-4 form. The taxpayer must earn less than Rs. 2 crores in business revenue or less than Rs. 50 lakhs in professional revenue in order to be eligible for the programm.
ITR-5: Partnership firms, LLPs, associations, and groups of people must file an ITR-5 form in order to report their income and compute their taxes.
ITR-6: Indian-registered businesses are required to submit the ITR-6 form.
ITR-7: Entities claiming exemption as political parties, scientific research institutions, colleges or universities, charitable/religious trusts, or must file an ITR-7 form.
Each year, filing income tax returns is required of all taxpayers, including individuals, NRIs, partnership firms, LLPs, corporations, and trusts. If an individual or NRI earns more than Rs. 2.5 lakhs annually, they must file an income tax return. Regardless of the amount of income or loss, proprietorship and partnership businesses are required to file income tax returns. Regardless of turnover or profit, filing an income tax return is mandatory for all businesses and LLPs. Income tax efiling services are offered by India Filings, who also offers dedicated CAnest support. Upload your Form 16 and then unwind. Within one to two business days, our professionals will file your income tax return and send you an acknowledgement.
Penalty for Late Filing Income Tax Return
A Penalty and interest on the late payment of income tax are levied against taxpayers who fail to file their returns on time. Additionally, the fine for submitting an income tax return after the deadline has recently gone up. The following is the current penalty for filing income tax returns late:
Late filing fees of Rs. 5000 apply between August 1 and December 31.
If the taxable income is less than Rs. 5 lakhs, a penalty of Rs. 10,000 will be assessed for late filing after December 31.
Section 234F, which provided information on the penalty amount for late or delayed filing of an income tax return, was introduced in 2018. The current interest charges (under section 234A) for late or delayed filing of IT returns would be increased by this penalty.
Due date for income tax returns
A taxable person who is an individual has until July 31 of each year to file their income tax returns. The deadline for filing income tax returns for businesses and taxpayers who need a tax audit is September 30.The Income Tax Act’s Section 44AD addresses tax audits under that Act.
If a company’s total sales turnover or gross receipts in any prior year exceeded Rs. 1 crore, a tax audit would be compulsory.
If a profession’s or professional’s gross receipts in any previous year exceeded Rs. 50 lakhs, a tax audit would be mandatory.
Scheme for Presumptive Taxation
If someone is enrolled in the presumed taxation programme described in section 44AD and if total sales or revenue exceed Rs. 2 crores, a tax audit would be necessary.