Every year, income tax returns are a mandatory exercise for salaried employees, business owners, freelancers, and start-ups alike. Until recently, the process of filing an Income Tax Return was a tedious one. But with the introduction of the online option, things were much easier. It is now possible to file an ITR from your home or office without standing in long lines. With this useful income tax app, you can even file returns while you are on the go.
We provide complete instructions on e-filing income tax returns here.
Check your eligibility before you begin:
What Are the Requirements for Filing an ITR?
People are unsure who has to file ITRs and who must not. They think that proof of tax payment (TDS, Form 16, Challan 280, etc.) suffices to satisfy tax obligations. According to the Income Tax Act, 1961, anyone under the following circumstances is required to file a return:
- Age under 60 and earning more than Rs 2,50,000 per month (for FY 2017-18), regardless of gender.
- If you earn more than Rupees 3,00,000 and are over the age of 60 (but not over 80) you are a senior citizen.
- For super senior citizens (those over 80) whose incomes are not exceeding 5,00,000 in the fiscal year 2016-17 and 2017-18, the Government has given tax relief (offline filing).
When E-filing Is Mandatory, the Following Conditions Apply:
- It is mandatory for individuals and Hindu Undivided Families (HUFs) to file their income tax electronically.
- It is also mandatory to e-file if the individual / HUF owns assets outside India despite not ordinarily being a resident.
- If a person/HUF seeks relief from tax paid outside India under section 90 or 90A or claims a deduction under section 91, he/she must file an online return.
- Individuals who are required to furnish an Audit Report under sections 10(23C) (iv), 10(23C) (v), 10(23C) (vi), 10(23C) (via), 10A, 10AA, 12A(1) (b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA,92E, 115JB, 115VW are required to file an ITR online if they are required to do so.
- It is mandatory to e-file your taxes if you have an income exceeding 5 lakhs or if you have claimed an income tax refund (this does not apply to super senior citizens).
- For all companies, e-filing is mandatory.
- For political parties, it is also mandatory.
- The filing of ITR-3, ITR-4, or ITR-5 returns by LLPs and individuals is also mandatory through e-filing
How Do I File My Income Tax Return?
- Forms for filing income tax returns vary depending on the source of income earned by individuals or businesses.
- Below is the list:
- Sahaj: This ITR form is for individuals who earn income from salaries or interest on deposits (bank savings, fixed deposits, etc.).
- This form is for individuals and HUFs who do not earn income from a profession or business.
- Currently, the ITR 2A form is only available to individuals and HUFs without income from a business, profession, or capital gains, and who do not own foreign assets. It was discontinued in FY 2016-17 and has been merged with ITR 2.
- This form is for individuals or HUFs who are partners in a firm that is not proprietary in nature.
- The form ITR 4 or Sugam is applicable to individuals who own a business or profession alone or with a partner. There are many taxpayers in this category, including shopkeepers, doctors, designers, agents, retailers, contractors, etc. Form ITR-4 is required by all businesses, undertakings, and professionals.
- The ITR-4 has been merged with the ITR-4, which had previously been used by individuals and Hindu Undivided Families (HUFs).
- Firms, Limited Liability Partnerships (LLPs), Bodies of Individuals (BOIs), Associations of Persons (AOPs), Co-operative Societies, Artificial Judicial Persons, and Local Authorities, among others, are included in ITR-5.
- The ITR-6 is applicable to all companies, except those with Section 11 tax exemptions (those with assets or land held for religious or charitable purposes).
- ITR-7: For individuals and companies covered by Sections 139(4A) or 139(4B), Section 139(4C), or Section 139(4D). News agencies, research associations, trusts, political parties, colleges, and universities are some of the bodies that use this form to declare taxes.