Guide on filing of Income Tax Returns
It is noticed that many persons faced very difficulties as to how they
can file income tax return (ITR) in which form. What are the consequences for
non filing of ITR. Also recently the procedure of the same has been amended by
the department. Hence, I am writing this article which will cover the procedure
in depth.
What is Income Tax Return (ITR)
Income Tax Return (ITR) is a prescribed form through which the
particulars of income earned by a person in a financial year and taxes paid on
such income are communicated to the Income-tax Department.
Purpose of Income tax return
A tax return is a form(s) filed with a taxing authority that
reports income, expenses and other pertinent tax information. Tax
returns allow taxpayers to calculate their tax liability,
schedule tax payments, or request refunds for the overpayment
of taxes. In most countries, tax returns must be filed annually.
Benefits of filing of income tax return
Income tax return gives you a detailed picture of your
total income earned during a year and taxes paid on it.
Filing of return is also your duty and earns for you the dignity of
consciously contributing to the development of the nation. Apart from this,
your income-tax returns validate your credit worthiness before financial
institutions and make it possible for you to access many financial benefits
such as bank credits, etc.
Mandatory Filing of Income Tax Return [Section 139(1)]
As per the Income Tax Act, 1961, in any of the following situations, it
is mandatory for every person to file an Income Tax Return in India
if -
(1) If gross total income
(before allowing any deductions under section 80C to 80U) exceeds the maximum
amount which is not chargeable to income-tax (i.e. Rs 2,50,000 in Financial
year 2020-21. This limit is Rs 3,00,000 for senior citizens (aged above 60 but
less than 80) or Rs 5,00,000 for Super Senior Citizens (aged above 80).
(2) In case of a company or a firm irrespective
of whether it has income or loss during the financial year
(3) In case any person want to claim
an Income-tax refund
(4) In case want to carry forward a
loss under a head of income
(5) Return filing is mandatory if a
person is a Resident individual and has an asset or financial interest in an
entity located outside of India. (Not applicable to NRIs or RNORs)
(6) If a person is Resident and a
signing authority in a foreign account. (Not applicable to NRIs or RNORs)
(7) In case a person is in receipt of
income derived from property held under a trust for charitable or religious
purposes or a political party or a research association, news agency,
educational or medical institution, trade union, a not for profit university or
educational institution, a hospital, infrastructure debt fund, any authority,
body or trust
(8) In case a foreign company taking
treaty benefit on a transaction in India
(9) From Assessment Year 2020-21,
following additional categories of person are also required to file Income Tax
Returns if the threshold is crossed in Financial year 2020-21, even if they
have NIL income or income of less than Rs 2,50,000, Rs. 3,00,000 or Rs.
5,00,000 lakhs as the case may be:
(i) Those who have
deposited more than Rs 1 crore in one or more of their bank accounts;
(ii) Person who has
bought foreign exchange of over Rs 2,00,000
(iii) Person who has paid
an electricity bill of more than Rs 1,00,000,
(i)
(10) Filing of return of income is mandatory in the following
cases:—
(i) RETURN OF INCOME OF CHARITABLE TRUSTS AND INSTITUTIONS
[Section
139(4A)]
Section 139(4A) of the Act,
provides that every person in receipt of income
Ø derived from
property held under a trust or any other legal obligation wholly or partly for
charitable or religious purposes or
Ø by way of voluntary
contributions referred to in section 2(24)(iia)on behalf of such trust or
institution
— shall, if its total income of the
trust (before allowing exemption under sections 11 and 12) exceeds the maximum
amount which is not chargeable to income-tax during the previous are required
to furnish a return of such income within the time allowed under section 139(1)
in the prescribed Form ITR-7 and verified in the prescribed manner as per the
provisions of Section 139(4A).
(ii) RETURN OF
INCOME OF POLITICAL PARTIES [Section 139(4B)]
A political party is required to file a return of income if its total
income before claiming any exemption under section 13A exceeds the basic
exemption limit.
(iii) RETURN OF
INCOME PERSONS CLAIMING EXEMPTION UNDER SECTION 10 [Section 139(4C)]
The following assessees shall be required to file return of income in
Form No. ITR-7 if the total income, without giving effect to the provisions of
section 10, exceeds the maximum amount which is not chargeable to income-tax.
(a) Research association referred to in section 10(21).
(b) News agency referred to in section 10(22B).
(c) Association or Institution referred to in section 10(23A).
(d) Institution referred to in section 10(23B).
(e) A University, Hospital or Other Institution referred to in sections
10(23C)(iiiab) and 10(23C)(iiiac) (with effect from assessment year 2016-17).
(f) Mutual Fund referred to in section 10(23D).
(g) Securitization Trust [section 10(23DA)]
(h) Venture capital company or Venture Capital Fund [section 10(23FB)]
(i) Trade Union Association [section 10(24)(a) or (b)]
(j) Body or authority or Board or Trust or Commission [section 10(46)]
(k) Infrastructure Debt Fund [section 10(47)]
v Such return shall
be filed in the same way as if it were a return required to be furnished under
section 139(1).
(iv) RETURN
BY UNIVERSITY, COLLEGE OR OTHER INSTITUTION [Section 139(4D)]
Every university, college or other institution referred to in section
35(1)(ii) and (iii), shall file the return of income or loss and such return
shall be deemed to be a return under section 139(1) of the Income Tax Act.
(v) RETURN
BY BUSINESS TRUST [Section 139(4E)]
With effect from assessment year 2015-16, every business trust, which is
not required to furnish return of Income or loss under any other provisions of
this section, shall furnish the return of its income in respect of its income
or loss in every previous year and all the provisions of the Income Tax Act
shall so far as may be, apply as if it were a return required to be furnished
under section 139(1).
(vi) RETURN BY
INVESTMENT FUND [Section 139(4F)]
Every investment fund referred to in section 115UB, which is not
required to furnish return of income or loss under any other provisions of this
section, shall furnish the return of income in respect of its income or loss in
every previous year and all the provisions of this Act shall, so far as may be,
apply as if it were a return required to be furnished under section 139(1).
(vii) RETURN OF PERSONS CLAIMING
EXEMPTION UNDER SECTION 10(23C)
The following assessees shall be required to file return of income in
Form No. 7, if the total income, without giving effect to the provisions of
section 10, exceeds the maximum amount not chargeable to tax.
(a) ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION
10(23C)(iiiab)
With effect from assessment year 2016-17, any University or other
educational institution existing solely for educational purposes and not for
purposes of profit, and which is wholly or substantially financed by the
Government shall be mandatorily required to file their return of income.
(b) ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SECTION
10(23C)(iiiac)
With effect from assessment year 2016-17, any hospital or other
institution for the reception and treatment of persons suffering from illness
or mental defectiveness or for the reception and treatment of persons
convalescence or persons requiring medical attention or rehabilitation,
existing solely for philanthropic purposes and not for purposes of profit, and
which is wholly or substantially financed by the Government shall be
mandatorily required to file their return of income.
(c) FUND OR INSTITUTION REFERRED TO IN SECTION 10(23C)(iv)
i.e. any other fund or institution established for charitable purposes
which may be approved by the prescribed authority (i.e. Chief Commissioner or
Director General) having regard to the objects of the fund or
institution and its importance throughout India or throughout any State or
States; or
(d) TRUST OR INSTITUTION REFERRED TO IN SECTION 10(23C)(v)
i.e. any trust or institution wholly of public religious purposes or
wholly for public religious and charitable purposes which may be approved by
the prescribed authority.
(e) ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION 10(23C)(vi)
i.e. any university or other educational institution existing solely for
educational purposes and not for the purpose of profit which is not financed
wholly or substantially by the Government and the aggregate annual receipt of
such institution exceeds one crore.
(f) ANY HOSPITAL OR OTHER MEDICAL INSTITUTION REFERRED TO IN SECTION
10(23C)(via)
i.e. Hospital or other Medical Institution existing solely for
philanthropic purposes and not for the purposes of profit and the aggregate
annual receipts of such hospital exceeds one crore.
Different modes of filing the return
of income
The Return Form can
be filed with the Income-tax Department in any of the following ways, –
(i) by furnishing the return in a paper form;
(ii) by furnishing the return electronically under digital
signature;
(iii) by transmitting the data in the return electronically under
electronic verification code;
(iv) by transmitting the data in the
return electronically and thereafter submitting the verification of the return
in Return Form ITR-V;
KEY NOTE
Where the return of income is filed in the manner given at (iv) without
digital signature, then the taxpayer should take two printed copies
of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, is to
be sent (within the period specified in this regard, i.e., 120 days) by
ordinary post or speed post to “Income-tax Department – CPC, Post Bag No. 1,
Electronic City Post Office, Bengalore-560100 (Karnataka). The other copy may
be retained by the taxpayer for his record.
Who can file ITR manually (i.e. paper returns)
It is mandatory to file the income tax returns online for all
the registered taxpayers whose has taxable income. However, paper
returns can be filed only if
(a) ITR is filed by an individual/ HUF; and
(b) Income during the assessment year is less than Rs.
5,00,000/-; and
(c) There is no refund claimed in ITR being filed; and
(d) By those who are above
80 years of age and do not have any income during the financial year
from regular business or profession
|
Income Tax Returns Form (ITR) |
||
|
S. No. |
ITR |
Description |
|
1. |
ITR 1 |
Also
known as SAHAJ For
Individuals being a resident (other than not ordinarily resident)
having total income upto Rs. 50,00,000, having Income from
Salaries, one house property, other sources (interest etc.), and agricultural
income upto Rs. 5,000 [Not
for an individual who is eitherDirector in a company or has invested in
unlistedequity shares] |
|
2. |
ITR 2 |
For
Individuals and HUFs not having income from profits and gains of business or
profession |
|
3. |
ITR 3 |
For
individuals and HUFs having income from profits and gains of business
or profession |
|
4. |
ITR 4 |
Also
known as SUGAM For
Individuals, HUFs and Firms (other than LLP) being a resident having total
income upto Rs. 50 lakh and having income from business and profession which
is computed under sections 44AD, 44ADA or 44AE. [Not
for an individual who is either Director in a company or has invested in
unlisted equity shares] |
|
5. |
ITR 5 |
For
persons other than,- (i) individual, (ii) HUF, (iii) company and (iv)
person filing Form ITR-7 |
|
6. |
ITR 6 |
For
Companies other than companies claiming exemption under section 11 |
|
7. |
ITR 7 |
For
persons including companies required to furnish return under sections 139(4A)
or 139(4B) or 139(4C) or 139(4D) only |
|
ITR V |
It is
the acknowledgement of filing the return of income. |
|
(1) ITR-1 Form (Also known as SAHAJ)
Also known
as SAHAJ - For Individuals resident and ordinarily resident
(ROR) having total income upto Rs. 50,00,000 from Salaries, one
house property, other sources (Interest etc.)
Eligible to File ITR 1
ITR -1 Form is a simplified one-page form for individuals having
income up to Rs 50 lakh from the following sources :
(i) Income from Salary
or Pension
(ii) Income from One House Property (except in case of
losses brought forward from preceding years)
(iii) Income from Other
Sources (excluding winning from Lottery and Income from Race Horses)
In the case of clubbed Income Tax Returns, where a spouse or a minor is
included in the returns, this can be done only if their income is limited to
the above specifications.
Not-eligible to file ITR-1 SAHAJ
Individuals who are not eligible to fill the ITR-1 SAHAJ form are those
who have earned Income through the following means:
(a) is a Director in a company; or
(b) has held any unlisted equity
shares at any time during the previous year; or
(c) has any asset (including
financial interest in any entity) located outside India; or
(d) has signing authority in any
account located outside India; or
(e) has income from any source
outside India.
This ITR – 1 form also cannot be used by an individual who has any
income of the following nature during the previous year:-
(a) Profits and gains from business
and professions; or
(b) Capital gains; or
(c) Income from more than one house
property; or
(d) Income under the head other
sources which is of following nature:-
(i) winnings from lottery; or
(ii) activity of owning and
maintaining race horses; or
(iii) income taxable at special rates
under section 115BBDA or section 115BBE; or
(e) income to be apportioned in
accordance with provisions of section 5A; or
(f) agricultural income in excess of
₹5,000.
Further, ITR – 1 form also cannot be used by an individual who has any
claims of loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss
to be carried forward under the head “Income from house
property”; or
(b) loss under the head “Income from other
sources”; or
(c) any claim of relief under section
90 and/or section 91; or
(d) any claim of deduction under
section 57, other than deduction under clause (iia) thereof (relating
to family pension); or
(e) any claim of credit of tax
deducted at source in the hands of any other person.
Submission of ITR-1
The form can be submitted either online or offline.
Online/Electronically
(i) By transmitting the
data electronically and then submitting the verification of the return in the
form of ITR-V to CPC, Bengaluru.
(ii) By filing the
return online and e-verifying the ITR – V through net
banking/aadhaar
OTP/EVC.
In case of Electronic Filing of the form there are two
alternatives. Firstly, if a Digital Signature is obtained, the Form is uploaded
online. Secondly, the Form is downloaded, printed, signed, and a copy of the
acknowledgement is sent by post to the Income Tax Department's office
in Bangaluru. within 120 days of e-filing.
ITR V can be verified online using Aadhaar Card or Electronic
Verification Code (EVC). The EVC can be generated either via One Time Password
sent to email and registered mobile number (if income is less than Rs.
5,00,000) or via Net Banking. After online verification Income Tax Assesses is
not required to send ITR V to Bangalore CPC.
Offline (in paper form)
Only the following persons have the option to file the return in paper
form
(i) An individual at
the age of 80 years or more at any time during the previous year
(ii) An individual whose
income does not exceed Rs 5 lakhs and who has not claimed any
refund in the return of income
For offline, the return is furnished in a physical paper form. The Income Tax
Department will issue you an acknowledgement at the time of submission of your
physical paper return.
Annexure-less ITR – 1 Form (SAHAJ)
No document (including TDS certificate) should be attached to ITR – 1
Form.
(2) ITR- 2 Form
The ITR-2 is filed by the individuals or HUFs not
having income from profit or gains of business or profession and to whom ITR-1
is not applicable. It includes income from capital gains, foreign income or any
agricultural income more than Rs 5,000.
Eligible to File ITR 2
The taxpayers who are eligible for filing ITR-2 form are the persons
whose source of income is as mentioned below:
(i) For Individuals and
HUFs not having income from profits and gains of business or profession
(ii) A resident having
any asset located outside India or signing authority in any account.
(iii) A non-resident or
not-ordinary resident.
(iv) Taxpayers who earn
agriculture income above Rs. 5000/-.
(v) Income from
winnings of a lottery, horse race, gambling, etc. under the head of other
sources.
(vi) Both short and
long-term capital gains/losses from the sale of property/ investments/
securities. (if there is only long term capital gain exempt under section
10(38) then ITR-1 can be filed)
Not-eligible to file ITR - 2
The taxpayers who do not require to file ITR-2 form are as follow:
(i) Taxpayers who earn income from business
or profession
(ii) Taxpayers
who are eligible for Income Tax Return 1 filing
(iii) An individual
who is designated as a partner in a Partnership Firm
Annexure-less ITR –
2 Form
No document
(including TDS certificate) should be attached to ITR – 2 Form.
Manner of filing Form ITR-2
ITR – 2 Form can
be filed with the Income-tax Department electronically on the e-filing
web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in) and verified in any one
of the following manner –
(i) digitally signing the verification
part, or
(ii) authenticating by way of electronic
verification code (EVC), or
(iii) by sending
duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following
address –
“Post Bag No. 1, Electronic City
Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120
days from the date of e-filing the return of income.
(3) ITR- 3 Form
The ITR-3 Form is applicable only to those Individuals and Hindu Undivided
Families that can be placed under the following categories
(i) Is a Partner in a firm
(ii) Gains Income through ‘Profits or
gains of business or profession’
(iii) Gains Income by means of interest, salary,
bonus, commission, remuneration, as a partner
Not-eligible to file ITR - 3
ITR – 3 Form should
not be used by an Individual or HUF who is eligible to file ITR-1, ITR-2 or
ITR-4. Individuals and Hindu Undivided Families who are not eligible to fill
the ITR-3 Form are those who have earned Income through a Business or
Profession operated as a Proprietorship firm. Assessees, who apart from
being a partner in a firm, also have sources of income from a business or
profession, including the speculation market, are also not eligible to file
their Income Tax Returns through this form.
Annexure-less ITR –
3 Form
No document
(including TDS certificate) should be attached to ITR – 3 Form.
Manner of filing Form ITR - 3
ITR – 3 Form can be filed with the
Income-tax Department electronically on the e-filing web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in) and verified in any one of
the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC),
or
(iii) by sending duly signed paper
Form ITR-V (Acknowledgment) by post to CPC at the following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
KEY NOTE
In a case where accounts are required to be audited under Section
44AB of the Income Tax Act, 1961, it is mandatory to verify the
return of income electronically using a digital signature.
In case an assessee is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the assessee shall file such report
electronically at least one month before the due date of filing the return of
income.
(4) ITR- 4 Form (Also known as SUGAM)
The ITR - 4 Form is applicable to those individual,
Hindu Undivided Families and Firms (other than LLP) being a resident who want
to declare their income from Business or Profession under Presumptive Income
Scheme of Income Tax under Section 44AD, Section 44ADA and Section 44AE of the
Income Tax Act.
Not-eligible to file ITR – 4 (Sugam)
(a) ITR – 4 (Sugam) Form should not be used by an individual who –
(i) is a Director in a
company; or
(ii) has held any
unlisted equity shares at any time during the previous year; or
(iii) has any asset
(including financial interest in any entity) located outside India; or
(iv) has signing
authority in any account located outside India; or
(v) has income from any
source outside India.
(b) ITR – 4 (Sugam) Form also
cannot be used by an individual who has any income of the following nature
during the previous year :-
(i) Profits and gains
from business and professions; or
(ii) Capital gains; or
(iii) Income from more
than one house property; or
(iv) Income under the
head other sources which is of following nature:-
(1) winnings from
lottery; or
(2) activity of owning
and maintaining race horses; or
(3) income taxable at
special rates under section 115BBDA or section 115BBE; or
(v) income to be apportioned in
accordance with provisions of section 5A; or
(vi) agricultural income in excess of
₹5,000.
(c) ITR – 4 (Sugam) Form
also cannot be used by an individual who has any claims of
loss/deductions/relief/tax credit etc. of the following nature:-
(i) any brought forward
loss or loss to be carried forward under the head “Income from house property”;
or
(ii) loss under the
head “Income from other sources”; or
(iii) any claim of relief
under section 90 and/or section 91; or
(iv) any claim of
deduction under section 57, other than deduction under clause (iia) thereof (relating
to family pension); or
(v) any claim of credit
of tax deducted at source in the hands of any other person.
ITR-4 Form (Sugam) is not mandatory
Form ITR-4 Form (Sugam) is a
simplified return form to be used by an assessee, at his/her option, if the
assessee is eligible to declare profits and gains from business and profession
on presumptive basis under section 44AD, 44ADA or 44AE.
However, in case the assessee keeps and maintains all books of accounts
and other documents referred to in section 44AA, and also gets his/her accounts
audited and obtains an audit report as per section 44AB, filling up the Form
ITR-4 (Sugam) is not mandatory. In such a case, other regular ITR forms viz.
ITR-3 or ITR-5, as applicable, should be used and not this Form.
Annexure-less ITR –
4 Form
No document
(including TDS certificate) should be attached to ITR – 4 Form.
Manner of filing Form ITR-4 (Sugam)
ITR – 4 (Sugam) Form can be filed with the Income-tax
Department in any of the following ways:-
(A) Electronically on the
e-filing web portal of Income-tax Department
(www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC), or
(iii) by sending duly signed paper Form ITR-V (Acknowledgment) by post
to CPC at the
following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
(B) In paper
form, at the designated offices of Income-tax Department, along with duly
signed Form ITR-V. This mode of
furnishing return of income is permissible only in case of super
senior citizens (i.e. an individual of the
age of 80 years or more at any time during the previous year).
(5) ITR- 5 Form
For persons other than,- (i) individual, (ii) HUF, (iii) company and
(iv) person filing Form ITR-7.
Eligible to File ITR 5
Form ITR – 5 can be used by a person being
(i) Partnership Firm,
(ii) Limited Liability
Partnership (LLP),
(iii) Association of
Persons (AOP),
(iv) Body of Individuals
(BOI),
(v) Artificial
Juridical Person (AJP) referred to in section 2(31)(vii),
(vi) local authority
referred to in section 2(31)(vi),
(vii) Cooperative
society,
(viii) Society registered
under Societies Registration Act, 1860 or under any other law of any State,
(ix) Trust other than
trusts eligible to file Form ITR-7,
(x) Estate of deceased
person,
(xi) Estate of an
insolvent,
(xii) Business trust
referred to in section 139(4E) and investments fund referred to in section
139(4F).
Not-eligible to file ITR - 5
Form ITR –
5 cannot be used by, a person who is required to file the return of income
under section
139(4A) or 139(4B) or 139(4C) or139(4D). This ITR - 5 Form
should also not be used by an Individual, HUF, Company and person filing ITR-7.
Annexure-less ITR –
5 Form
No document
(including TDS certificate) should be attached to ITR - 5 Form.
Manner of filing Form ITR-5
ITR – 5 Form can be filed with the Income-tax Department electronically
on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC),
or
(iii) by sending duly signed paper
Form ITR-V (Acknowledgment) by post to CPC at the following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
KEY NOTE
In a case where accounts are required to be audited under section
44AB of the Income Tax Act, 1961, it is mandatory to verify the
return of income electronically using a digital signature.
In case an assessee is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the assessee shall file such report
electronically at least one month before the due date of filing the return of
income.
(6) ITR- 6 Form
Form ITR – 6 can be used
by a company, other than a company claiming exemption under section
11 (charitable/religious trust can claim exemption under section
11).
Not-eligible to file ITR - 6
Form ITR - 6 cannot be used by a company claiming exemption
under section 11 (charitable/religious trust can claim exemption
under section 11).
Annexure-less ITR –
6 Form
No document
(including TDS certificate) should be attached to this ITR Form.
Manner of filing
Form ITR-6
ITR – 6 Form can be filed with the Income-tax Department electronically
on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified by using a digital signature only.
In case the Company is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the Company shall file such report
electronically at least one month before the due date of filing the return of
income.
(7) ITR- 7 Form
(A) Form ITR-7 can be used by persons who are required to furnish
return under section
139(4A) or, section 139(4B) or 139(4C) or
section 139(4D) only.
Eligible to File ITR 7
Form ITR –
7 can be used by persons including companies who are required to furnish
return under section 139(4A) or section 139(4B)or section
139(4C) or section 139(4D) or section 139(4D) only.
(1) EARN FROM A
CHARITABLE /RELIGIOUS TRUST
Return under section
139(4A) is required to be filed by every person in receipt of income
derived
from property held under trust or other legal obligation wholly for charitable
or
religious purposes or in part only for such purposes.
(2) UNDER SECTION 139
(4B)- IF THEY EARN FROM A POLITICAL PARTY
Return under section 139(4B) is required to be filed by a political
party if the total income without giving effect to the provisions of section
139A exceeds the maximum amount which is not chargeable to income-tax.
(3) EARN FROM
SCIENTIFIC RESEARCH INSTITUTIONS
Return under section 139(4C) is required to be filed by every
(i) scientific research
association ;
(ii) news agency ;
(iii) association or
institution referred to in section 10(23A);
(iv) institution
referred to in section 10(23B);
(v) fund or institution
or university or other educational institution or any hospital or other medical
institution.
Return of income
[With effect from 2016-17]
By virtue of section 139(4C) every educational institution referred to in
section 10(23C)(iiiab) or section 10(23C)(iiiad) or section 10(23C)(vi) whose
total income in respect of which such institution is assessable, without
giving effect to the provisions of section 10, exceeds the maximum amount which
is not chargeable to income-tax, furnish a return of such income of the
previous year in the prescribed form.
Mandatorily
required to furnish a return of income [Section 139(4C)]
With effect from assessment year 2018-19, any
person as referred to in section 10(23AAA) shall be mandatorily required to
furnish a return of income.
(4) EARN FROM
UNIVERSITY OR COLLEGES OR INSTITUTIONS OR KHADI AND VILLAGE INDUSTRIES
Return under section 139(4D) is required to be filed by every
university, college or other institution, which is not required to furnish
return of income or loss under any other provision of this section.
(B) The category of persons whose income
is unconditionally exempt under various clauses of section 10, and who are not
mandatorily required to furnish their return of income under the provisions of
section 139, may use this form for filing return. A list of such persons is given
below:-
|
S. No. |
Category of persons |
Exempt under Section |
|
(i) |
Local authority |
10(20) |
|
(ii) |
Regimental Fund or Non-public Fund
established by the Armed forces of the Union |
10(23AA) |
|
(iii) |
Fund, by whatever name called, set up by the Life lnsurance Corporation (LIC) of India on or after 1st August, 1996, or by any
other insurer |
10(23AAB) |
|
(iv) |
Authority (whether known as the Khadi and Village Industries Board or by any other
name) |
10(23BB) |
|
(v) |
Body or Authority |
10(23BBA) |
|
(vi) |
SAARC Fund for Regional Projects set up by
Colombo Declaration |
10(23BBC) |
|
(vii) |
lnsurance Regulatory and
Development Authority (IRDA) |
10(23BBE) |
|
(viii) |
Central Electricity Regulatory Commission |
10(23BBG) |
|
(ix) |
Prasar Bharati |
10(23BBH) |
|
(x) |
Prime Minister’s National Relief Fund |
10(23C)(i) |
|
(xi) |
Prime Minister’s Fund (Promotion of Folk Art) |
10(23C)(ii) |
|
(xii) |
Prime Minister’s Aid to Students Fund |
10(23C)(iii) |
|
(xiii) |
National Foundation for Communal Harmony |
10(23C)(iiia) |
|
(xiv) |
Swachh Bharat Kosh |
10(23C)(iiiaa) |
|
(xv) |
Clean Ganga Fund |
10(23C)(iiiaaa) |
|
(xvi) |
Provident fund to which the Provident Funds Act,
1925 applies |
10(25)(i) |
|
(xvii) |
Recognized Provident Fund |
10(25)(ii) |
|
(xviii) |
Approved Superannuation Funds |
10(25)(iii) |
|
(xix) |
Approved Gratuity Fund |
10(25)(iv) |
|
(xx) |
Other funds referred to in
sub-clause (v) of section 10(25) |
10(25)(v) |
|
(xxi) |
Employees’ State Insurance Fund |
10(25A) |
|
(xxii) |
Agricultural Produce Marketing Committee |
10(26AAB) |
|
(xxiii) |
Corporation, body, institution or
association established for promoting interests of members of Scheduled Castes or ScheduIed Tribes or backward classes |
10(26B) |
|
(xxiv) |
Corporation established for promoting interests of members of a minority community |
10(26BB) |
|
(xxv) |
Corporation established for welfare and economic upliftment of ex-servicemen |
10(26BBB) |
|
(xxvi) |
New Pension System (NPS) Trust |
10(44) |
Form ITR-7 is to be furnished
electronically in the following modes
This Return Form can be filed with
the Income Tax Department in any of the following ways:—
(i) by furnishing
the return electrically under digital signature,
(ii) by transmitting the
data in the return electronically under electronic verification code,
(iii) by
transmitting the data in the return electronically and thereafter submitting
the verification of the return in Return Form ITR-V.
Annexure-less ITR -
7 Form
No document
(including TDS certificate) should be attached to this ITR Form.
Compulsory e-filing of return of
income (without digital signature) [Proviso to Rule 12(2)]
The assessee who is required to
furnish a report of audit specified under sections 10(23C)(iv), 10(23C)(v),
10(23C)(vi), 10(23C)(via) and 12A(i)(b) or to give a notice under section
11(2)(a) is liable to file the return of income (alongwith audit report)
electronically.
Filing of return by unregistered
organisations
Charitable/Religious Organisations,
which are not registered under section 11 or under section 10(23C) of the
Income Tax Act and do not enjoy any exemption on their income. Hence, they are
liable to file the return if the voluntary contribution received by them or their
income exceeds the maximum amount which is not chargeable to income-tax in any
previous year. Such organisations should file their income-tax return in ITR-7.
Not-eligible to file ITR - 7
Form ITR – 7 cannot be used by a person who is not
required to furnish return under section 139(4A) or section
139(4B) or section 139(4C) or section 139(4D) (i.e., trusts,
political party, institutions, colleges). This ITR – 7 Form should also not be
used by a Company required to file return of income in ITR-6.
ITR Form NRIs need
to furnish income tax return
A non-resident or a person not
ordinarily resident in India, earning income in the form of salary and
interest, is required to furnish return of income in ITR-2 form.
ITR Form NRIs need
to furnish income tax return
A non-resident Indian (NRI) is
required to furnish his return of income if the aforesaid income exceeds the
maximum exemption limit, i.e., Rs. 2,50,000 (for Financial year 2020-21). This
limit shall be considered without giving effect to the provisions of section
10(38), 10A, 10B, 10BA or deduction available under sections 80C to 80U. He can
furnish his return of income in Form ITR -2 or ITR-3, depending on the nature
of income. A NRI cannot file return of income in Form ITR-1. ITR-1 form
can only be used by an individual who is resident in India.
If a NRI has income from business or profession then return is required
to be filed in Form ITR-3. In all other cases, ITR-2 can be used to file return
of income. In case the NRI has opted for presumptive taxation scheme, return
has to be filed in ITR-3 only, up to Assessment Year 2018-19, an option to file
return in ITR-4 was available to NRI who opted for presumptive taxation scheme.
However, same is withdrawn w.e.f, Assessment Year 2019-20.
The Central Board of
Direct Taxes (CBDT) has also exempted certain class of NRIs from
the mandatory requirement of furnishing of ITRs. In case of a NRI, furnishing
of ITR isn’t required if such NRI has any of the following incomes on which TDS
has been deducted and prescribed conditions have been fulfilled:
(i) Investment income
derived from a foreign exchange asset
(ii) Long-term capital
gains form such foreign exchange asset
(iii) Income from participation in any game
or sport in India (other than the winnings from lotteries, etc., as referred to
under Section 115BB)
(iv) Advertisement
Income
(v) Income from
contribution of articles relating to any game or sport in India in any
newspapers, journals or magazines
(vi) Any income received
or receivable for performance as an entertainer in India
(vii) Income by way of
Interest on bonds as referred to in Section 115AC
(viii) Income by way of
dividend, other than those as referred to in Section 115-O, on Global Depository
Receipts as referred to in Section 115AC.
(ix) Income by way of
dividend, other than those as referred to in Section 115-O
(x) Interest received
from Government or Indian concern on monies borrowed or debt incurred by
Government or Indian concern in foreign currency
(xi) Interest received
from an Infrastructure Debt Fund as referred to in Section 10(47)
(xii) Interest on borrowings in foreign
currency or monies borrowed by way of Rupee Denominated Bonds as referred to in
Section 194LC
(xiii) Interest on investment made by FII or
QFI in Rupee Denominated Bond of an Indian company or Government security
as referred to in Section 194LD
(xiv) Distributed income being interest received or
receivable from a Special Purpose Vehicle as referred to in Section 194LBA(2)
(xv) Income from units, purchased in
foreign currency, of a mutual fund, as specified in Section 10(23D)
(xvi) Income, other than business income,
distributed by an investment fund located in International Financial Services
Centre (IFSC) located in India.
Who can verify and sign the income
tax return [Section 140]
Every income tax return
filed must be mandatorily signed by the appropriate person
(authorised by tax law) confirming that the information given in
the return are correct and in accordance with the income tax
law and also confirming that he/she is the competent person to make
and verify the return.
|
S. No. |
Status |
Who can
verify and sign |
|
1. |
Individual |
The
individual filing his Income Tax Return has to sign the return.
In case the individual is mentally incapable, then the return may be signed
by his Guardian or by any other person competent to act on his behalf. In
case the individual is absent from India or because of any other reason he is
not able to sign and verify his return of income, then any person duly
empowered by him through valid Power of Attorney may sign on his behalf. In
such a case, a certified copy of the Power of Attorney must accompany the
return. |
|
2. |
Hindu
Undivided Family |
By the
Karta or where he is absent from India or is mentally incapacitated from
attending to his affairs, by any other adult member of such family. |
|
3. |
Indian
Company |
Managing
Director Any
director if such managing director is not able to verify and sign the
return for any unavoidable reason or if there is no managing director |
|
4. |
Foreign
company |
The
return may be signed and verified by a person holding a valid Power of
Attorney from the Company, which should be attached to the return. |
|
5. |
Company
is being wound up (whether by the court order or otherwise) or where any
person has been appointed as receiver of assets of the company |
Liquidator of
the company or the person who has been appointed the receiver of assets of
the company (Section 178(1)) |
|
6. |
Company
whose management is taken over by Central/State Government under
any law |
Principal
officer |
|
7. |
Company
whose application for corporate insolvency resolution process has
been admitted by the Adjudicating Authority under Insolvency and Bankruptcy
Code, 2016 |
Insolvency
professional (as defined under Insolvency and Bankruptcy Code, 2016) appointed
by such Adjudicating Authority
|
|
8. |
Firm: |
Managing
Partner, or where there is no Managing Partner or due to some unavoidable
reasons, he is not able to sign and verify the return, by any partner thereof
not being a minor. |
|
9. |
Limited
Liability Partnership (LLP) |
Designated
partner Any
partner if such designated partner is unable to sign and verify the
return for any unavoidable reason or if there is no designated partner |
|
10. |
Local
Authority : |
By the
Principal Officer. |
|
11. |
Political
party |
Chief
executive officer of such party irrespective of the nomenclature of his
designation |
|
12. |
Association
of Persons : |
By any
member of the Association or the Principal Officer thereof. |
|
13. |
Any
Association |
Any
member of the association or the principal officer |
|
14 |
Other
person |
That person
himself/ herself Any person
competent to act on his behalf |
Due date for filing
Income tax returns
|
S. No. |
Assessment year |
Non Audit case |
Businesses (Requiring Audit) |
Businesses (Requiring TP Report) (i.e. Assessee who are required to furnish report
under section 92E) |
|
1. |
2020-21 |
30th November 2020 |
31st October 2020 |
30th November 2020 |
|
2. |
2019-20 |
31st August 2019 |
31st October 2019 |
30th November 2019 |
|
3. |
2018-19 |
31st August 2018 |
31st October 2018 |
30th November 2018 |
|
4. |
2017-18 |
5th August 2017 |
7th November 2017 |
30th November 2017 |
|
5. |
2016-17 |
5th August 2016
|
17th October 2016
|
30th November 2016 |
|
6. |
2015-16 |
31st August 2015 |
31st October 2015 |
30th November 2015 |
How many times can revise the return
If a person after furnishing the
return finds any mistake, omission or any wrong statement, then return should
be revised within prescribed time limit.
The income tax return
can only be revised if the same has been filed by the due date.
A belated income tax return (filed after the due date) cannot
be revised. There is no restriction as to the number of times
an income tax return can be revised.
A return
can be revised before the expiry of one year from the end of the
assessment year or before assessment by the department is completed; whichever
event takes place earlier.
If original return has filed in paper
format or manually, then technically it cannot be revised by online mode or
electronically. Revised return can be filed online under section
139(5).
Consequences of delay/ non filing the
return of income/Loss (other than house property loss)
Following are the consequences of
delay/ non filing the return of income/ Loss (other than house
property loss):
(1) Carry Forward of Losses are not allowed
Not able to carry forward losses if the return of income is not filed
within due date. However, the loss under the head “Income from house property”
can be carried forward even if the return of income/loss of the year in which
loss is incurred is not furnished on or before the due date of furnishing the
return, as prescribed under section 139(1).
(2) Fees for delay in
filing of return [Section 234F]
With effect from assessment year
2018-19, if a person assessee who is required to furnish return of income under
section 139 failed to furnish return of income within due date as prescribed
under section 139(1) then as per section 234F, he will be required to pay fee
of:-
|
S. No. |
Date of
filing |
Fees
leviable |
|
(a) |
If the
return is furnished after the due date of filing but on or before the 31st
day of December. |
Rs.
5,000 |
|
(b) |
In any
other case |
Rs.
10,000 |
|
KEY
NOTE : If the total income of the person does not exceed Rs. 5,00,000, the
fee payable under this section shall not exceed Rs.1,000. |
||
(3) Interest for default in furnishing
return of Income [Section 234A]
Where the return of income for any
Assessment year is furnished after the due date specified in section 139(1) or
is not furnished the assessee shall be liable to pay simple Interest @ 1% for
every month or part of a month. This interest is calculated from the due date
to the date of actually filing the income tax return.
(4) Best Judgment Assessment [Section 144]
The Assessing Officer is under an obligation to make an assessment to
the best of his judgment. If any person fails to make the return required under
section 139(1) and has not made a return or a revised return under section
139(4) or section 139(5) of that section, the Assessing Officer has gathered,
shall, after giving the assessee an opportunity of being heard, make the
assessment of the total income or loss to the best of his judgment and
determine the sum payable by the assessee on the basis of such assessment.
(5) Claim of Refund
of taxes
In case your tax payable is less than
the TDS already deducted, you can claim the refund of such excess TDS by filing
your Income Tax Return.
You must file your Income Tax Return to claim the refund of TDS.
Further, you are eligible for Interest @0.5% per month or part of the
month on refund amount as per Section 244A.
(6) Applicability of sections 11 and 12 – only if it
furnishes return of income within the time
Section 12A provides that the charitable trust must file its return of
income for the relevant previous year where its total income (before giving
effect to sections 11 and 12) exceeds maximum amount not chargeable to
income-tax in any previous year.
In order to provide greater clarity, clause (ba) in section 12A(1)
inserted by the Finance Act, 2017 with effect from 01.04.2018 (applicable from
assessment year 2018-19) to the effect that such person files the income-tax
return within the time allowed under section 139(4A).
(7) Penalty for
under-reporting and misreporting of income [Section 270A]
The Assessing Officer or the
Commissioner (Appeals) or the Principal Commissioner or Commissioner may,
during the course of any proceedings under this Act, direct that any person who
has under-reported his income shall be liable to pay a penalty in addition to
tax, if any, on the under-reported income.
SECTION 270(2)(b)
(2) A person shall be considered to have under-reported his income, if—
(b) the income assessed is greater than the maximum amount not
chargeable to tax, where no return of income has been furnished or
where return has been furnished for the first time under section 148;
SECTION 270(3)(b)
(3) The amount of under-reported income shall be,—
(b) in a case where no return of income has been
furnished or where return has been furnished for the first time
under section 148,—
Quantum of penalty that can be levied
under section 270A
If income is under-reported due to
misreporting of income, then penalty shall be levied at 200% of tax payable on
such under-reported income. However, if income is under-reported due to any
other circumstances, then penalty shall be 50% of tax payable on under-reported
income.
|
IN CASE
OF UNDER REPORTING When
the “under-reporting” is not because of misreporting, the penalty would
be 50% of tax payable on the under-reported income. |
50% of
the amount of tax payable on the under reported income |
|
IN CASE
OF MISREPORTING OF INCOME When
the “under-reporting” is because of misreporting, the penalty would be 200% of
the tax payable on the under-reported income. |
200% of
the amount of tax payable on under reported income |
Penalty for default in filing return
of Income
v If a person fails
to furnish the return of income which he is required to furnish under section
139(4A) or 139(4C) or to furnish it within the time allowed, he shall pay, by
way of penalty under section 272 A(2)(e), a sum of 100 for every day during
which the failure continues.
v The penalty order
is passed by the Additional Commissioner of Income Tax or Joint Commissioner of
Income Tax, after giving an opportunity to the assessee.
v In case of genuine
reasons for delay, penalty may not be imposed in view of section 273B.
(8) Prosecution for failure to furnish Returns of Income
If a person wilfully fails to furnish in due time the return of income
which he is required to furnish under section 139(1) or by notice
given under section 142(1)(i) or section 148 or section 153A, he shall be punishable,—
Punishment
(a) Where tax sought to be
evaded exceeds Rs. 25,00,000
Ø With rigorous imprisonment for a
term which shall not be less than 6 months but which may
extend to 7 years and with fine
(b) in other cases
Ø With rigorous imprisonment for a
term which shall not be less than 3 months but which may extend 2
years and with fine
(9) Deduction
under section 10A are not available [Proviso to Section 10A(1A)]
The Proviso to section 10A(1A)
provides that “no deduction under this section shall
be allowed to an assessee who does not furnish a return
of his income on or before the due date specified under
Section 139(1)”.
(10) Deduction
under section 10B are not available [Fourth Proviso to Section 10B]
The Fourth Proviso to section 10B provides that “no deduction under this section shall
be allowed to an assessee who does not furnish a return of his
income on or before the due date specified under Section 139(1)”.
Guide on filing of Income Tax Returns
It is noticed that many persons faced very difficulties as to how they
can file income tax return (ITR) in which form. What are the consequences for
non filing of ITR. Also recently the procedure of the same has been amended by
the department. Hence, I am writing this article which will cover the procedure
in depth.
What is Income Tax Return (ITR)
Income Tax Return (ITR) is a prescribed form through which the
particulars of income earned by a person in a financial year and taxes paid on
such income are communicated to the Income-tax Department.
Purpose of Income tax return
A tax return is a form(s) filed with a taxing authority that
reports income, expenses and other pertinent tax information. Tax
returns allow taxpayers to calculate their tax liability,
schedule tax payments, or request refunds for the overpayment
of taxes. In most countries, tax returns must be filed annually.
Benefits of filing of income tax return
Income tax return gives you a detailed picture of your
total income earned during a year and taxes paid on it.
Filing of return is also your duty and earns for you the dignity of
consciously contributing to the development of the nation. Apart from this,
your income-tax returns validate your credit worthiness before financial
institutions and make it possible for you to access many financial benefits
such as bank credits, etc.
Mandatory Filing of Income Tax Return [Section 139(1)]
As per the Income Tax Act, 1961, in any of the following situations, it
is mandatory for every person to file an Income Tax Return in India
if -
(1) If gross total income
(before allowing any deductions under section 80C to 80U) exceeds the maximum
amount which is not chargeable to income-tax (i.e. Rs 2,50,000 in Financial
year 2020-21. This limit is Rs 3,00,000 for senior citizens (aged above 60 but
less than 80) or Rs 5,00,000 for Super Senior Citizens (aged above 80).
(2) In case of a company or a firm
irrespective of whether it has income or loss during the financial year
(3) In case any person want to claim
an Income-tax refund
(4) In case want to carry forward a
loss under a head of income
(5) Return filing is mandatory if a
person is a Resident individual and has an asset or financial interest in an
entity located outside of India. (Not applicable to NRIs or RNORs)
(6) If a person is Resident and a
signing authority in a foreign account. (Not applicable to NRIs or RNORs)
(7) In case a person is in receipt of
income derived from property held under a trust for charitable or religious
purposes or a political party or a research association, news agency,
educational or medical institution, trade union, a not for profit university or
educational institution, a hospital, infrastructure debt fund, any authority,
body or trust
(8) In case a foreign company taking
treaty benefit on a transaction in India
(9) From Assessment Year 2020-21,
following additional categories of person are also required to file Income Tax
Returns if the threshold is crossed in Financial year 2020-21, even if they
have NIL income or income of less than Rs 2,50,000, Rs. 3,00,000 or Rs.
5,00,000 lakhs as the case may be:
(i) Those who have
deposited more than Rs 1 crore in one or more of their bank accounts;
(ii) Person who has
bought foreign exchange of over Rs 2,00,000
(iii) Person who has paid
an electricity bill of more than Rs 1,00,000,
(i)
(10) Filing of return of income is mandatory in the following
cases:—
(i) RETURN OF INCOME OF CHARITABLE TRUSTS AND INSTITUTIONS
[Section
139(4A)]
Section 139(4A) of the Act,
provides that every person in receipt of income
Ø derived from
property held under a trust or any other legal obligation wholly or partly for
charitable or religious purposes or
Ø by way of voluntary
contributions referred to in section 2(24)(iia)on behalf of such trust or
institution
— shall, if its total income of the
trust (before allowing exemption under sections 11 and 12) exceeds the maximum
amount which is not chargeable to income-tax during the previous are required
to furnish a return of such income within the time allowed under section 139(1)
in the prescribed Form ITR-7 and verified in the prescribed manner as per the
provisions of Section 139(4A).
(ii) RETURN
OF INCOME OF POLITICAL PARTIES [Section 139(4B)]
A political party is required to file a return of income if its total
income before claiming any exemption under section 13A exceeds the basic
exemption limit.
(iii) RETURN OF INCOME
PERSONS CLAIMING EXEMPTION UNDER SECTION 10 [Section 139(4C)]
The following assessees shall be required to file return of income in
Form No. ITR-7 if the total income, without giving effect to the provisions of
section 10, exceeds the maximum amount which is not chargeable to income-tax.
(a) Research association referred to in section 10(21).
(b) News agency referred to in section 10(22B).
(c) Association or Institution referred to in section 10(23A).
(d) Institution referred to in section 10(23B).
(e) A University, Hospital or Other Institution referred to in sections
10(23C)(iiiab) and 10(23C)(iiiac) (with effect from assessment year 2016-17).
(f) Mutual Fund referred to in section 10(23D).
(g) Securitization Trust [section 10(23DA)]
(h) Venture capital company or Venture Capital Fund [section 10(23FB)]
(i) Trade Union Association [section 10(24)(a) or (b)]
(j) Body or authority or Board or Trust or Commission [section 10(46)]
(k) Infrastructure Debt Fund [section 10(47)]
v Such return shall
be filed in the same way as if it were a return required to be furnished under
section 139(1).
(iv) RETURN
BY UNIVERSITY, COLLEGE OR OTHER INSTITUTION [Section 139(4D)]
Every university, college or other institution referred to in section
35(1)(ii) and (iii), shall file the return of income or loss and such return
shall be deemed to be a return under section 139(1) of the Income Tax Act.
(v) RETURN
BY BUSINESS TRUST [Section 139(4E)]
With effect from assessment year 2015-16, every business trust, which is
not required to furnish return of Income or loss under any other provisions of
this section, shall furnish the return of its income in respect of its income
or loss in every previous year and all the provisions of the Income Tax Act
shall so far as may be, apply as if it were a return required to be furnished
under section 139(1).
(vi) RETURN BY
INVESTMENT FUND [Section 139(4F)]
Every investment fund referred to in section 115UB, which is not
required to furnish return of income or loss under any other provisions of this
section, shall furnish the return of income in respect of its income or loss in
every previous year and all the provisions of this Act shall, so far as may be,
apply as if it were a return required to be furnished under section 139(1).
(vii) RETURN OF PERSONS CLAIMING
EXEMPTION UNDER SECTION 10(23C)
The following assessees shall be required to file return of income in
Form No. 7, if the total income, without giving effect to the provisions of
section 10, exceeds the maximum amount not chargeable to tax.
(a) ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION
10(23C)(iiiab)
With effect from assessment year 2016-17, any University or other
educational institution existing solely for educational purposes and not for
purposes of profit, and which is wholly or substantially financed by the
Government shall be mandatorily required to file their return of income.
(b) ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SECTION
10(23C)(iiiac)
With effect from assessment year 2016-17, any hospital or other
institution for the reception and treatment of persons suffering from illness
or mental defectiveness or for the reception and treatment of persons
convalescence or persons requiring medical attention or rehabilitation,
existing solely for philanthropic purposes and not for purposes of profit, and
which is wholly or substantially financed by the Government shall be
mandatorily required to file their return of income.
(c) FUND OR INSTITUTION REFERRED TO IN SECTION 10(23C)(iv)
i.e. any other fund or institution established for charitable purposes
which may be approved by the prescribed authority (i.e. Chief Commissioner or
Director General) having regard to the objects of the fund or
institution and its importance throughout India or throughout any State or
States; or
(d) TRUST OR INSTITUTION REFERRED TO IN SECTION 10(23C)(v)
i.e. any trust or institution wholly of public religious purposes or
wholly for public religious and charitable purposes which may be approved by
the prescribed authority.
(e) ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION
10(23C)(vi)
i.e. any university or other educational institution existing solely for
educational purposes and not for the purpose of profit which is not financed
wholly or substantially by the Government and the aggregate annual receipt of
such institution exceeds one crore.
(f) ANY HOSPITAL OR OTHER MEDICAL INSTITUTION REFERRED TO IN SECTION
10(23C)(via)
i.e. Hospital or other Medical Institution existing solely for
philanthropic purposes and not for the purposes of profit and the aggregate
annual receipts of such hospital exceeds one crore.
Different modes of filing the return
of income
The Return Form can
be filed with the Income-tax Department in any of the following ways, –
(i) by furnishing the return in a paper form;
(ii) by furnishing the return electronically under digital
signature;
(iii) by transmitting the data in the return electronically under electronic
verification code;
(iv) by transmitting the data in the
return electronically and thereafter submitting the verification of the return
in Return Form ITR-V;
KEY NOTE
Where the return of income is filed in the manner given at (iv) without
digital signature, then the taxpayer should take two printed copies
of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, is to
be sent (within the period specified in this regard, i.e., 120 days) by
ordinary post or speed post to “Income-tax Department – CPC, Post Bag No. 1,
Electronic City Post Office, Bengalore-560100 (Karnataka). The other copy may
be retained by the taxpayer for his record.
Who can file ITR manually (i.e. paper returns)
It is mandatory to file the income tax returns online for all
the registered taxpayers whose has taxable income. However, paper
returns can be filed only if
(a) ITR is filed by an individual/ HUF; and
(b) Income during the assessment year is less than Rs.
5,00,000/-; and
(c) There is no refund claimed in ITR being filed; and
(d) By those who are above
80 years of age and do not have any income during the financial year
from regular business or profession
|
Income Tax Returns Form (ITR) |
||
|
S. No. |
ITR |
Description |
|
1. |
ITR 1 |
Also
known as SAHAJ For
Individuals being a resident (other than not ordinarily resident)
having total income upto Rs. 50,00,000, having Income from
Salaries, one house property, other sources (interest etc.), and agricultural
income upto Rs. 5,000 [Not
for an individual who is eitherDirector in a company or has invested in
unlistedequity shares] |
|
2. |
ITR 2 |
For
Individuals and HUFs not having income from profits and gains of business or
profession |
|
3. |
ITR 3 |
For
individuals and HUFs having income from profits and gains of business
or profession |
|
4. |
ITR 4 |
Also
known as SUGAM For
Individuals, HUFs and Firms (other than LLP) being a resident having total
income upto Rs. 50 lakh and having income from business and profession which
is computed under sections 44AD, 44ADA or 44AE. [Not
for an individual who is either Director in a company or has invested in
unlisted equity shares] |
|
5. |
ITR 5 |
For
persons other than,- (i) individual, (ii) HUF, (iii) company and (iv)
person filing Form ITR-7 |
|
6. |
ITR 6 |
For
Companies other than companies claiming exemption under section 11 |
|
7. |
ITR 7 |
For
persons including companies required to furnish return under sections 139(4A)
or 139(4B) or 139(4C) or 139(4D) only |
|
ITR V |
It is
the acknowledgement of filing the return of income. |
|
(1) ITR-1 Form (Also known as SAHAJ)
Also known
as SAHAJ - For Individuals resident and ordinarily resident
(ROR) having total income upto Rs. 50,00,000 from Salaries, one
house property, other sources (Interest etc.)
Eligible to File ITR 1
ITR -1 Form is a simplified one-page form for individuals having
income up to Rs 50 lakh from the following sources :
(i) Income from Salary
or Pension
(ii) Income from One House Property (except in case of
losses brought forward from preceding years)
(iii) Income from Other
Sources (excluding winning from Lottery and Income from Race Horses)
In the case of clubbed Income Tax Returns, where a spouse or a minor is
included in the returns, this can be done only if their income is limited to
the above specifications.
Not-eligible to file ITR-1 SAHAJ
Individuals who are not eligible to fill the ITR-1 SAHAJ form are those
who have earned Income through the following means:
(a) is a Director in a company; or
(b) has held any unlisted equity
shares at any time during the previous year; or
(c) has any asset (including
financial interest in any entity) located outside India; or
(d) has signing authority in any
account located outside India; or
(e) has income from any source
outside India.
This ITR – 1 form also cannot be used by an individual who has any
income of the following nature during the previous year:-
(a) Profits and gains from business
and professions; or
(b) Capital gains; or
(c) Income from more than one house
property; or
(d) Income under the head other
sources which is of following nature:-
(i) winnings from lottery; or
(ii) activity of owning and
maintaining race horses; or
(iii) income taxable at special rates
under section 115BBDA or section 115BBE; or
(e) income to be apportioned in
accordance with provisions of section 5A; or
(f) agricultural income in excess of
₹5,000.
Further, ITR – 1 form also cannot be used by an individual who has any
claims of loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss
to be carried forward under the head “Income from house
property”; or
(b) loss under the head “Income from other
sources”; or
(c) any claim of relief under section
90 and/or section 91; or
(d) any claim of deduction under
section 57, other than deduction under clause (iia) thereof (relating
to family pension); or
(e) any claim of credit of tax
deducted at source in the hands of any other person.
Submission of ITR-1
The form can be submitted either online or offline.
Online/Electronically
(i) By transmitting the
data electronically and then submitting the verification of the return in the
form of ITR-V to CPC, Bengaluru.
(ii) By filing the
return online and e-verifying the ITR – V through net
banking/aadhaar
OTP/EVC.
In case of Electronic Filing of the form there are two
alternatives. Firstly, if a Digital Signature is obtained, the Form is uploaded
online. Secondly, the Form is downloaded, printed, signed, and a copy of the
acknowledgement is sent by post to the Income Tax Department's office
in Bangaluru. within 120 days of e-filing.
ITR V can be verified online using Aadhaar Card or Electronic
Verification Code (EVC). The EVC can be generated either via One Time Password
sent to email and registered mobile number (if income is less than Rs.
5,00,000) or via Net Banking. After online verification Income Tax Assesses is
not required to send ITR V to Bangalore CPC.
Offline (in paper form)
Only the following persons have the option to file the return in paper
form
(i) An individual at
the age of 80 years or more at any time during the previous year
(ii) An individual whose
income does not exceed Rs 5 lakhs and who has not claimed any
refund in the return of income
For offline, the return is furnished in a physical paper form. The Income Tax
Department will issue you an acknowledgement at the time of submission of your
physical paper return.
Annexure-less ITR – 1 Form (SAHAJ)
No document (including TDS certificate) should be attached to ITR – 1
Form.
(2) ITR- 2 Form
The ITR-2 is filed by the individuals or HUFs not
having income from profit or gains of business or profession and to whom ITR-1
is not applicable. It includes income from capital gains, foreign income or any
agricultural income more than Rs 5,000.
Eligible to File ITR 2
The taxpayers who are eligible for filing ITR-2 form are the persons
whose source of income is as mentioned below:
(i) For Individuals and
HUFs not having income from profits and gains of business or profession
(ii) A resident having
any asset located outside India or signing authority in any account.
(iii) A non-resident or
not-ordinary resident.
(iv) Taxpayers who earn
agriculture income above Rs. 5000/-.
(v) Income from
winnings of a lottery, horse race, gambling, etc. under the head of other
sources.
(vi) Both short and
long-term capital gains/losses from the sale of property/ investments/
securities. (if there is only long term capital gain exempt under section
10(38) then ITR-1 can be filed)
Not-eligible to file ITR - 2
The taxpayers who do not require to file ITR-2 form are as follow:
(i) Taxpayers who earn income from business
or profession
(ii) Taxpayers
who are eligible for Income Tax Return 1 filing
(iii) An individual
who is designated as a partner in a Partnership Firm
Annexure-less ITR –
2 Form
No document
(including TDS certificate) should be attached to ITR – 2 Form.
Manner of filing Form ITR-2
ITR – 2 Form can
be filed with the Income-tax Department electronically on the e-filing
web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in) and verified in any one
of the following manner –
(i) digitally signing the verification
part, or
(ii) authenticating by way of electronic
verification code (EVC), or
(iii) by sending
duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following
address –
“Post Bag No. 1, Electronic City
Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120
days from the date of e-filing the return of income.
(3) ITR- 3 Form
The ITR-3 Form is applicable only to those Individuals and Hindu
Undivided Families that can be placed under the following categories
(i) Is a Partner in a firm
(ii) Gains Income through ‘Profits or
gains of business or profession’
(iii) Gains Income by means of interest, salary,
bonus, commission, remuneration, as a partner
Not-eligible to file ITR - 3
ITR – 3 Form should
not be used by an Individual or HUF who is eligible to file ITR-1, ITR-2 or
ITR-4. Individuals and Hindu Undivided Families who are not eligible to fill
the ITR-3 Form are those who have earned Income through a Business or
Profession operated as a Proprietorship firm. Assessees, who apart from
being a partner in a firm, also have sources of income from a business or
profession, including the speculation market, are also not eligible to file
their Income Tax Returns through this form.
Annexure-less ITR –
3 Form
No document
(including TDS certificate) should be attached to ITR – 3 Form.
Manner of filing Form ITR - 3
ITR – 3 Form can be filed with the
Income-tax Department electronically on the e-filing web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in) and verified in any one of
the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC),
or
(iii) by sending duly signed paper
Form ITR-V (Acknowledgment) by post to CPC at the following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
KEY NOTE
In a case where accounts are required to be audited under Section
44AB of the Income Tax Act, 1961, it is mandatory to verify the
return of income electronically using a digital signature.
In case an assessee is required to furnish a report of audit under Sections
10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or
115JC of the Income Tax Act, the assessee shall file such report electronically
at least one month before the due date of filing the return of income.
(4) ITR- 4 Form (Also known as SUGAM)
The ITR - 4 Form is applicable to those individual,
Hindu Undivided Families and Firms (other than LLP) being a resident who want
to declare their income from Business or Profession under Presumptive Income
Scheme of Income Tax under Section 44AD, Section 44ADA and Section 44AE of the
Income Tax Act.
Not-eligible to file ITR – 4 (Sugam)
(a) ITR – 4 (Sugam) Form should not be used by an individual who –
(i) is a Director in a
company; or
(ii) has held any
unlisted equity shares at any time during the previous year; or
(iii) has any asset
(including financial interest in any entity) located outside India; or
(iv) has signing
authority in any account located outside India; or
(v) has income from any
source outside India.
(b) ITR – 4 (Sugam) Form also
cannot be used by an individual who has any income of the following nature
during the previous year :-
(i) Profits and gains
from business and professions; or
(ii) Capital gains; or
(iii) Income from more
than one house property; or
(iv) Income under the
head other sources which is of following nature:-
(1) winnings from
lottery; or
(2) activity of owning
and maintaining race horses; or
(3) income taxable at
special rates under section 115BBDA or section 115BBE; or
(v) income to be apportioned in
accordance with provisions of section 5A; or
(vi) agricultural income in excess of
₹5,000.
(c) ITR – 4 (Sugam) Form
also cannot be used by an individual who has any claims of
loss/deductions/relief/tax credit etc. of the following nature:-
(i) any brought forward
loss or loss to be carried forward under the head “Income from house property”;
or
(ii) loss under the
head “Income from other sources”; or
(iii) any claim of relief
under section 90 and/or section 91; or
(iv) any claim of
deduction under section 57, other than deduction under clause (iia) thereof (relating
to family pension); or
(v) any claim of credit
of tax deducted at source in the hands of any other person.
ITR-4 Form (Sugam) is not mandatory
Form ITR-4 Form (Sugam) is a
simplified return form to be used by an assessee, at his/her option, if the
assessee is eligible to declare profits and gains from business and profession
on presumptive basis under section 44AD, 44ADA or 44AE.
However, in case the assessee keeps and maintains all books of accounts
and other documents referred to in section 44AA, and also gets his/her accounts
audited and obtains an audit report as per section 44AB, filling up the Form
ITR-4 (Sugam) is not mandatory. In such a case, other regular ITR forms viz.
ITR-3 or ITR-5, as applicable, should be used and not this Form.
Annexure-less ITR –
4 Form
No document
(including TDS certificate) should be attached to ITR – 4 Form.
Manner of filing Form ITR-4 (Sugam)
ITR – 4 (Sugam) Form can be filed with the Income-tax
Department in any of the following ways:-
(A) Electronically on the
e-filing web portal of Income-tax Department
(www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC), or
(iii) by sending duly signed paper Form ITR-V (Acknowledgment) by post
to CPC at the
following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
(B) In paper
form, at the designated offices of Income-tax Department, along with duly
signed Form ITR-V. This mode of
furnishing return of income is permissible only in case of super
senior citizens (i.e. an individual of the
age of 80 years or more at any time during the previous year).
(5) ITR- 5 Form
For persons other than,- (i) individual, (ii) HUF, (iii) company and
(iv) person filing Form ITR-7.
Eligible to File ITR 5
Form ITR – 5 can be used by a person being
(i) Partnership Firm,
(ii) Limited Liability
Partnership (LLP),
(iii) Association of
Persons (AOP),
(iv) Body of Individuals
(BOI),
(v) Artificial
Juridical Person (AJP) referred to in section 2(31)(vii),
(vi) local authority
referred to in section 2(31)(vi),
(vii) Cooperative
society,
(viii) Society registered
under Societies Registration Act, 1860 or under any other law of any State,
(ix) Trust other than
trusts eligible to file Form ITR-7,
(x) Estate of deceased
person,
(xi) Estate of an
insolvent,
(xii) Business trust
referred to in section 139(4E) and investments fund referred to in section
139(4F).
Not-eligible to file ITR - 5
Form ITR –
5 cannot be used by, a person who is required to file the return of income
under section
139(4A) or 139(4B) or 139(4C) or139(4D). This ITR - 5 Form
should also not be used by an Individual, HUF, Company and person filing ITR-7.
Annexure-less ITR –
5 Form
No document
(including TDS certificate) should be attached to ITR - 5 Form.
Manner of filing Form ITR-5
ITR – 5 Form can be filed with the Income-tax Department electronically
on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC),
or
(iii) by sending duly signed paper
Form ITR-V (Acknowledgment) by post to CPC at the following address –
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
KEY NOTE
In a case where accounts are required to be audited under section
44AB of the Income Tax Act, 1961, it is mandatory to verify the
return of income electronically using a digital signature.
In case an assessee is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the assessee shall file such report electronically
at least one month before the due date of filing the return of income.
(6) ITR- 6 Form
Form ITR – 6 can be used
by a company, other than a company claiming exemption under section
11 (charitable/religious trust can claim exemption under section
11).
Not-eligible to file ITR - 6
Form ITR - 6 cannot be used by a company claiming exemption
under section 11 (charitable/religious trust can claim exemption
under section 11).
Annexure-less ITR –
6 Form
No document
(including TDS certificate) should be attached to this ITR Form.
Manner of filing
Form ITR-6
ITR – 6 Form can be filed with the Income-tax Department electronically
on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified by using a digital signature only.
In case the Company is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the Company shall file such report
electronically at least one month before the due date of filing the return of
income.
(7) ITR- 7 Form
(A) Form ITR-7 can be used by persons who are required to furnish
return under section
139(4A) or, section 139(4B) or 139(4C) or
section 139(4D) only.
Eligible to File ITR 7
Form ITR –
7 can be used by persons including companies who are required to furnish
return under section 139(4A) or section 139(4B)or section
139(4C) or section 139(4D) or section 139(4D) only.
(1) EARN FROM A
CHARITABLE /RELIGIOUS TRUST
Return under section
139(4A) is required to be filed by every person in receipt of income
derived
from property held under trust or other legal obligation wholly for charitable
or
religious purposes or in part only for such purposes.
(2) UNDER SECTION 139
(4B)- IF THEY EARN FROM A POLITICAL PARTY
Return under section 139(4B) is required to be filed by a political
party if the total income without giving effect to the provisions of section
139A exceeds the maximum amount which is not chargeable to income-tax.
(3) EARN FROM
SCIENTIFIC RESEARCH INSTITUTIONS
Return under section 139(4C) is required to be filed by every
(i) scientific research
association ;
(ii) news agency ;
(iii) association or
institution referred to in section 10(23A);
(iv) institution
referred to in section 10(23B);
(v) fund or institution
or university or other educational institution or any hospital or other medical
institution.
Return of income
[With effect from 2016-17]
By virtue of section 139(4C) every educational institution referred to in
section 10(23C)(iiiab) or section 10(23C)(iiiad) or section 10(23C)(vi) whose
total income in respect of which such institution is assessable, without
giving effect to the provisions of section 10, exceeds the maximum amount which
is not chargeable to income-tax, furnish a return of such income of the
previous year in the prescribed form.
Mandatorily
required to furnish a return of income [Section 139(4C)]
With effect from assessment year 2018-19, any
person as referred to in section 10(23AAA) shall be mandatorily required to
furnish a return of income.
(4) EARN FROM
UNIVERSITY OR COLLEGES OR INSTITUTIONS OR KHADI AND VILLAGE INDUSTRIES
Return under section 139(4D) is required to be filed by every
university, college or other institution, which is not required to furnish
return of income or loss under any other provision of this section.
(B) The category of persons whose income
is unconditionally exempt under various clauses of section 10, and who are not
mandatorily required to furnish their return of income under the provisions of
section 139, may use this form for filing return. A list of such persons is given
below:-
|
S. No. |
Category of persons |
Exempt under Section |
|
(i) |
Local authority |
10(20) |
|
(ii) |
Regimental Fund or Non-public Fund
established by the Armed forces of the Union |
10(23AA) |
|
(iii) |
Fund, by whatever name called, set up by the Life lnsurance Corporation (LIC) of India on or after 1st August, 1996, or by any
other insurer |
10(23AAB) |
|
(iv) |
Authority (whether known as the Khadi and Village Industries Board or by any other
name) |
10(23BB) |
|
(v) |
Body or Authority |
10(23BBA) |
|
(vi) |
SAARC Fund for Regional Projects set up by
Colombo Declaration |
10(23BBC) |
|
(vii) |
lnsurance Regulatory and
Development Authority (IRDA) |
10(23BBE) |
|
(viii) |
Central Electricity Regulatory Commission |
10(23BBG) |
|
(ix) |
Prasar Bharati |
10(23BBH) |
|
(x) |
Prime Minister’s National Relief Fund |
10(23C)(i) |
|
(xi) |
Prime Minister’s Fund (Promotion of Folk Art) |
10(23C)(ii) |
|
(xii) |
Prime Minister’s Aid to Students Fund |
10(23C)(iii) |
|
(xiii) |
National Foundation for Communal Harmony |
10(23C)(iiia) |
|
(xiv) |
Swachh Bharat Kosh |
10(23C)(iiiaa) |
|
(xv) |
Clean Ganga Fund |
10(23C)(iiiaaa) |
|
(xvi) |
Provident fund to which the Provident Funds Act,
1925 applies |
10(25)(i) |
|
(xvii) |
Recognized Provident Fund |
10(25)(ii) |
|
(xviii) |
Approved Superannuation Funds |
10(25)(iii) |
|
(xix) |
Approved Gratuity Fund |
10(25)(iv) |
|
(xx) |
Other funds referred to in
sub-clause (v) of section 10(25) |
10(25)(v) |
|
(xxi) |
Employees’ State Insurance Fund |
10(25A) |
|
(xxii) |
Agricultural Produce Marketing Committee |
10(26AAB) |
|
(xxiii) |
Corporation, body, institution or
association established for promoting interests of members of Scheduled Castes or ScheduIed Tribes or backward classes |
10(26B) |
|
(xxiv) |
Corporation established for promoting interests of members of a minority community |
10(26BB) |
|
(xxv) |
Corporation established for welfare and economic upliftment of ex-servicemen |
10(26BBB) |
|
(xxvi) |
New Pension System (NPS) Trust |
10(44) |
Form ITR-7 is to be furnished
electronically in the following modes
This Return Form can be filed with
the Income Tax Department in any of the following ways:—
(i) by furnishing
the return electrically under digital signature,
(ii) by transmitting the
data in the return electronically under electronic verification code,
(iii) by
transmitting the data in the return electronically and thereafter submitting
the verification of the return in Return Form ITR-V.
Annexure-less ITR -
7 Form
No document
(including TDS certificate) should be attached to this ITR Form.
Compulsory e-filing of return of
income (without digital signature) [Proviso to Rule 12(2)]
The assessee who is required to
furnish a report of audit specified under sections 10(23C)(iv), 10(23C)(v),
10(23C)(vi), 10(23C)(via) and 12A(i)(b) or to give a notice under section
11(2)(a) is liable to file the return of income (alongwith audit report)
electronically.
Filing of return by unregistered
organisations
Charitable/Religious Organisations,
which are not registered under section 11 or under section 10(23C) of the
Income Tax Act and do not enjoy any exemption on their income. Hence, they are
liable to file the return if the voluntary contribution received by them or their
income exceeds the maximum amount which is not chargeable to income-tax in any
previous year. Such organisations should file their income-tax return in ITR-7.
Not-eligible to file ITR - 7
Form ITR – 7 cannot be used by a person who is not
required to furnish return under section 139(4A) or section
139(4B) or section 139(4C) or section 139(4D) (i.e., trusts,
political party, institutions, colleges). This ITR – 7 Form should also not be
used by a Company required to file return of income in ITR-6.
ITR Form NRIs need
to furnish income tax return
A non-resident or a person not
ordinarily resident in India, earning income in the form of salary and
interest, is required to furnish return of income in ITR-2 form.
ITR Form NRIs need
to furnish income tax return
A non-resident Indian (NRI) is
required to furnish his return of income if the aforesaid income exceeds the
maximum exemption limit, i.e., Rs. 2,50,000 (for Financial year 2020-21). This
limit shall be considered without giving effect to the provisions of section
10(38), 10A, 10B, 10BA or deduction available under sections 80C to 80U. He can
furnish his return of income in Form ITR -2 or ITR-3, depending on the nature
of income. A NRI cannot file return of income in Form ITR-1. ITR-1 form
can only be used by an individual who is resident in India.
If a NRI has income from business or profession then return is required
to be filed in Form ITR-3. In all other cases, ITR-2 can be used to file return
of income. In case the NRI has opted for presumptive taxation scheme, return
has to be filed in ITR-3 only, up to Assessment Year 2018-19, an option to file
return in ITR-4 was available to NRI who opted for presumptive taxation scheme.
However, same is withdrawn w.e.f, Assessment Year 2019-20.
The Central Board of
Direct Taxes (CBDT) has also exempted certain class of NRIs from
the mandatory requirement of furnishing of ITRs. In case of a NRI, furnishing
of ITR isn’t required if such NRI has any of the following incomes on which TDS
has been deducted and prescribed conditions have been fulfilled:
(i) Investment income
derived from a foreign exchange asset
(ii) Long-term capital
gains form such foreign exchange asset
(iii) Income from participation in any game
or sport in India (other than the winnings from lotteries, etc., as referred to
under Section 115BB)
(iv) Advertisement
Income
(v) Income from
contribution of articles relating to any game or sport in India in any
newspapers, journals or magazines
(vi) Any income received
or receivable for performance as an entertainer in India
(vii) Income by way of
Interest on bonds as referred to in Section 115AC
(viii) Income by way of
dividend, other than those as referred to in Section 115-O, on Global Depository
Receipts as referred to in Section 115AC.
(ix) Income by way of
dividend, other than those as referred to in Section 115-O
(x) Interest received
from Government or Indian concern on monies borrowed or debt incurred by
Government or Indian concern in foreign currency
(xi) Interest received
from an Infrastructure Debt Fund as referred to in Section 10(47)
(xii) Interest on borrowings in foreign
currency or monies borrowed by way of Rupee Denominated Bonds as referred to in
Section 194LC
(xiii) Interest on investment made by FII or
QFI in Rupee Denominated Bond of an Indian company or Government security
as referred to in Section 194LD
(xiv) Distributed income being interest received or
receivable from a Special Purpose Vehicle as referred to in Section 194LBA(2)
(xv) Income from units, purchased in
foreign currency, of a mutual fund, as specified in Section 10(23D)
(xvi) Income, other than business income,
distributed by an investment fund located in International Financial Services
Centre (IFSC) located in India.
Who can verify and sign the income
tax return [Section 140]
Every income tax return
filed must be mandatorily signed by the appropriate person
(authorised by tax law) confirming that the information given in
the return are correct and in accordance with the income tax
law and also confirming that he/she is the competent person to make
and verify the return.
|
S. No. |
Status |
Who can
verify and sign |
|
1. |
Individual |
The
individual filing his Income Tax Return has to sign the return.
In case the individual is mentally incapable, then the return may be signed
by his Guardian or by any other person competent to act on his behalf. In
case the individual is absent from India or because of any other reason he is
not able to sign and verify his return of income, then any person duly
empowered by him through valid Power of Attorney may sign on his behalf. In
such a case, a certified copy of the Power of Attorney must accompany the
return. |
|
2. |
Hindu
Undivided Family |
By the
Karta or where he is absent from India or is mentally incapacitated from
attending to his affairs, by any other adult member of such family. |
|
3. |
Indian
Company |
Managing
Director Any
director if such managing director is not able to verify and sign the
return for any unavoidable reason or if there is no managing director |
|
4. |
Foreign
company |
The
return may be signed and verified by a person holding a valid Power of
Attorney from the Company, which should be attached to the return. |
|
5. |
Company
is being wound up (whether by the court order or otherwise) or where any
person has been appointed as receiver of assets of the company |
Liquidator of
the company or the person who has been appointed the receiver of assets of
the company (Section 178(1)) |
|
6. |
Company
whose management is taken over by Central/State Government under
any law |
Principal
officer |
|
7. |
Company
whose application for corporate insolvency resolution process has
been admitted by the Adjudicating Authority under Insolvency and Bankruptcy
Code, 2016 |
Insolvency
professional (as defined under Insolvency and Bankruptcy Code, 2016) appointed
by such Adjudicating Authority
|
|
8. |
Firm: |
Managing
Partner, or where there is no Managing Partner or due to some unavoidable
reasons, he is not able to sign and verify the return, by any partner thereof
not being a minor. |
|
9. |
Limited
Liability Partnership (LLP) |
Designated
partner Any
partner if such designated partner is unable to sign and verify the
return for any unavoidable reason or if there is no designated partner |
|
10. |
Local
Authority : |
By the
Principal Officer. |
|
11. |
Political
party |
Chief
executive officer of such party irrespective of the nomenclature of his
designation |
|
12. |
Association
of Persons : |
By any
member of the Association or the Principal Officer thereof. |
|
13. |
Any
Association |
Any
member of the association or the principal officer |
|
14 |
Other
person |
That person
himself/ herself Any person
competent to act on his behalf |
Due date for filing
Income tax returns
|
S. No. |
Assessment year |
Non Audit case |
Businesses (Requiring Audit) |
Businesses (Requiring TP Report) (i.e. Assessee who are required to furnish report
under section 92E) |
|
1. |
2020-21 |
30th November 2020 |
31st October 2020 |
30th November 2020 |
|
2. |
2019-20 |
31st August 2019 |
31st October 2019 |
30th November 2019 |
|
3. |
2018-19 |
31st August 2018 |
31st October 2018 |
30th November 2018 |
|
4. |
2017-18 |
5th August 2017 |
7th November 2017 |
30th November 2017 |
|
5. |
2016-17 |
5th August 2016
|
17th October 2016
|
30th November 2016 |
|
6. |
2015-16 |
31st August 2015 |
31st October 2015 |
30th November 2015 |
How many times can revise the return
If a person after furnishing the
return finds any mistake, omission or any wrong statement, then return should
be revised within prescribed time limit.
The income tax return
can only be revised if the same has been filed by the due date.
A belated income tax return (filed after the due date) cannot
be revised. There is no restriction as to the number of times
an income tax return can be revised.
A return
can be revised before the expiry of one year from the end of the
assessment year or before assessment by the department is completed; whichever
event takes place earlier.
If original return has filed in paper
format or manually, then technically it cannot be revised by online mode or
electronically. Revised return can be filed online under section
139(5).
Consequences of delay/ non filing the
return of income/Loss (other than house property loss)
Following are the consequences of
delay/ non filing the return of income/ Loss (other than house
property loss):
(1) Carry Forward of Losses are not allowed
Not able to carry forward losses if the return of income is not filed
within due date. However, the loss under the head “Income from house property”
can be carried forward even if the return of income/loss of the year in which
loss is incurred is not furnished on or before the due date of furnishing the
return, as prescribed under section 139(1).
(2) Fees for delay in
filing of return [Section 234F]
With effect from assessment year
2018-19, if a person assessee who is required to furnish return of income under
section 139 failed to furnish return of income within due date as prescribed
under section 139(1) then as per section 234F, he will be required to pay fee
of:-
|
S. No. |
Date of
filing |
Fees
leviable |
|
(a) |
If the
return is furnished after the due date of filing but on or before the 31st
day of December. |
Rs.
5,000 |
|
(b) |
In any
other case |
Rs.
10,000 |
|
KEY
NOTE : If the total income of the person does not exceed Rs. 5,00,000, the
fee payable under this section shall not exceed Rs.1,000. |
||
(3) Interest for default in furnishing
return of Income [Section 234A]
Where the return of income for any
Assessment year is furnished after the due date specified in section 139(1) or
is not furnished the assessee shall be liable to pay simple Interest @ 1% for
every month or part of a month. This interest is calculated from the due date
to the date of actually filing the income tax return.
(4) Best Judgment Assessment [Section 144]
The Assessing Officer is under an obligation to make an assessment to
the best of his judgment. If any person fails to make the return required under
section 139(1) and has not made a return or a revised return under section
139(4) or section 139(5) of that section, the Assessing Officer has gathered,
shall, after giving the assessee an opportunity of being heard, make the
assessment of the total income or loss to the best of his judgment and
determine the sum payable by the assessee on the basis of such assessment.
(5) Claim of Refund
of taxes
In case your tax payable is less than
the TDS already deducted, you can claim the refund of such excess TDS by filing
your Income Tax Return.
You must file your Income Tax Return to claim the refund of TDS.
Further, you are eligible for Interest @0.5% per month or part of the
month on refund amount as per Section 244A.
(6) Applicability of sections 11 and 12 – only if it
furnishes return of income within the time
Section 12A provides that the charitable trust must file its return of
income for the relevant previous year where its total income (before giving
effect to sections 11 and 12) exceeds maximum amount not chargeable to
income-tax in any previous year.
In order to provide greater clarity, clause (ba) in section 12A(1)
inserted by the Finance Act, 2017 with effect from 01.04.2018 (applicable from
assessment year 2018-19) to the effect that such person files the income-tax
return within the time allowed under section 139(4A).
(7) Penalty for
under-reporting and misreporting of income [Section 270A]
The Assessing Officer or the
Commissioner (Appeals) or the Principal Commissioner or Commissioner may,
during the course of any proceedings under this Act, direct that any person who
has under-reported his income shall be liable to pay a penalty in addition to
tax, if any, on the under-reported income.
SECTION 270(2)(b)
(2) A person shall be considered to have under-reported his income, if—
(b) the income assessed is greater than the maximum amount not
chargeable to tax, where no return of income has been furnished or
where return has been furnished for the first time under section 148;
SECTION 270(3)(b)
(3) The amount of under-reported income shall be,—
(b) in a case where no return of income has been
furnished or where return has been furnished for the first time
under section 148,—
Quantum of penalty that can be levied
under section 270A
If income is under-reported due to
misreporting of income, then penalty shall be levied at 200% of tax payable on
such under-reported income. However, if income is under-reported due to any
other circumstances, then penalty shall be 50% of tax payable on under-reported
income.
|
IN CASE
OF UNDER REPORTING When
the “under-reporting” is not because of misreporting, the penalty would
be 50% of tax payable on the under-reported income. |
50% of
the amount of tax payable on the under reported income |
|
IN CASE
OF MISREPORTING OF INCOME When
the “under-reporting” is because of misreporting, the penalty would be 200% of
the tax payable on the under-reported income. |
200% of
the amount of tax payable on under reported income |
Penalty for default in filing return
of Income
v If a person fails
to furnish the return of income which he is required to furnish under section
139(4A) or 139(4C) or to furnish it within the time allowed, he shall pay, by
way of penalty under section 272 A(2)(e), a sum of 100 for every day during
which the failure continues.
v The penalty order
is passed by the Additional Commissioner of Income Tax or Joint Commissioner of
Income Tax, after giving an opportunity to the assessee.
v In case of genuine
reasons for delay, penalty may not be imposed in view of section 273B.
(8) Prosecution for failure to furnish Returns of Income
If a person wilfully fails to furnish in due time the return of income
which he is required to furnish under section 139(1) or by notice
given under section 142(1)(i) or section 148 or section 153A, he shall be punishable,—
Punishment
(a) Where tax sought to be
evaded exceeds Rs. 25,00,000
Ø With rigorous imprisonment for a
term which shall not be less than 6 months but which may
extend to 7 years and with fine
(b) in other cases
Ø With rigorous imprisonment for a
term which shall not be less than 3 months but which may extend 2
years and with fine
(9) Deduction
under section 10A are not available [Proviso to Section 10A(1A)]
The Proviso to section 10A(1A)
provides that “no deduction under this section shall
be allowed to an assessee who does not furnish a return
of his income on or before the due date specified under
Section 139(1)”.
(10) Deduction
under section 10B are not available [Fourth Proviso to Section 10B]
The Fourth Proviso to section 10B provides that “no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under Section 139(1)”.
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