ITR stands for Income Tax Return. The Income Tax Act, 1961. Governs all ITR forms and procedures to followed. This article gives in depth understanding to the Income Tax Return definition and types of ITR form.
What is ITR?
Income Tax Return form in which the taxpayers file information about income earned and applicable to the income tax department.
The department has notified 7 various forms i.e. ITR1, ITR2, ITR3, ITR4, ITR5, ITR6 & ITR7 till date. Every taxpayer should file Income Tax Return (ITR) before specified due date. The applicability of ITR forms varies depending on sources of Income a taxpayer, the amount is income earned and the category of the taxpayer like individuals, HUF, company, etc. Lex N Tax provides Best ITR filing services in Delhi NCR.
Which ITR Should I File ?
It is mandatory to file income tax returns in India if any of the following conditions mentioned below:
1.If your annual income is more than basic exemption limit as specified below-
|For individual below 60 years||Rs 2.5 Lakh|
|For individual above 60 years but below 80 years||Rs 3.0 Lakh|
|For individual above 80 years||Rs 5.0 Lakh|
2.If want to claim income tax refund from department.
3. If you earned from invested in foreign assets during the FY.
4. if you apply for visa or a loan
5. if the taxpayer is company or firm, irrespective of profit or loss.
Also, you mandatorily required to file ITR even your income is below the exemption limit but you have to follow conditions:
- Deposited an aggregate amount of more than Rs.1 crore in one or
more current bank accounts;
- If incurred an aggregate of more than 2 lakh on foreign travel for self
or any other person;
- If incurred an expenditure aggregate more than Rs.1 lakh towards electricity consumption.
Lex N Tax gives you Best services of ITR filing in Delhi NCR.
Which ITR to file?
This return Form is resident individual whose total income for the AY includes:
Who can file ITR-1
- Income from Salary/pension; or
- Income for House property (excluding cases where loss is brought forward from previous years); or
- Income excluding the Winning Lottery and Race Horses.
- Agricultural income up to Rs 5000.
Who cannot use ITR 1 Form?
- Total income excluding Rs 50 lakh.
- Agricultural income exceeding Rs 5000.
- If you have taxable capital gains.
- Income from business or profession.
- If income more the one house property.
- If you Director of a company.
- If your investments in unlisted equity shares at any time during the financial year.
- If you not ordinarily resident (RNOR) and non-resident.
- Having foreign assets or foreign income.
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ITR 2 is the use an individual or Hindu Undivided Family (HUF) whose total income for the Financial Year includes:
- Income from Salary / pension; or
- Income from House Property; or
- Income from other Source (including winnings from Lottery and Income from Race Horses).
(Total income from the other should be more then Rs 50 Lakh)
- If you have an Individual Director in a company
- Income for Capital Gains;
- Foreign Assets / Foreign income
- Agricultural income more than Rs 5000
The Current ITR3 Form is the used by an individual or a Hindu Undivided Family
Who have income from proprietary business are carrying on profession. The persons having income from the following sources are eligible to file ITR3.
- Carrying on a business or profession
- Individual Director in a company
- Investments in unlisted equity shares at any time during the financial year
- Income of a person as a partner in the ITR3
The current ITR4 applies the individuals and HUFs Partnership firms (other than LLPs), which are residents and whose total income include
- Business income according in the presumptive income scheme under section 44AD or 44AE
- Professional income according to presumptive income scheme under section 44DA
- Income of salary and pension up to Rs.50 lakh
- Income of house property, not more than Rs.50 lakh
- Income for other sources having not more then 50 lakh
Who cannot use ITR 4 Form?
- Your total income exceeds Rs.50 lakh
- Resident not ordinarily resident and non-resident
- Owning any foreign asset
- Income from any other source outside of India.
- Signing authority in any account located outside India
- Having foreign assets or foreign income
ITR 5 is firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.
For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purpose), the return has to be filed electronically only.
For persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section (4C) or section 139(4D) or section 139(4E)
and section 139(4F).
- Return under section 139(4A) required to be filed every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes in part only for such purposes.
- 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, not chargeable to income-tax.
- Return under section 139(4C) required to be filed by every-
- Scientific research association;
- News agency;
- Association to institution referred to in section 10(23A)
- Institution referred to the section 10(23B);
- Found to institution and university other educational any hospital other medical institution.
- Return under section 139(4D) required to be filed by every university, college or other institution, which is not required to furnish return for income or loss under any other provision of this section.
- Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income and loss under any other provisions of this section.
- Return under section 139(4F) must be filed by any investment fund referred to is section 115UB. Not required to furnish return of income and loss under any other provisions of this section.
On the off chance that you are looking for ITR documenting in Janakpuri or Income Tax Return Filing in Delhi or ITR Filing in Delhi NCR.
Document Required For ITR Filing
1. PAN Card
2. Aadhar Card
3. Form 16
4. Form 16A/ Form 16B/Form 16C
5. Bank Account details
6. Form 26 AS
7. Home Loan statement
8. Tax Saving Instruments
9. Capital Gains Details
10. Rental Income
11. Foreign income
12. Dividend Income etc.
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