1. Which ITR Form should you fill out?
The Indian Government has framed income tax laws to impose a tax on the taxable income of all persons who are individuals, salaried employees, Hindu undivided families, LLP, companies, and local authorities. ITR-1 This ITR form is also called Sahaj and it must be filled out only by the residential individuals' taxpayers. There are certain conditions to fill out this ITR form which are mentioned below.
- If an individual does not have any income source from another country or does not have any property outside of the country.
- If an individual is receiving his income in the form of a pension or salary.
- If the earned income in agriculture is less than Rs. 5000.
- If an individual’s total income is not crossed Rs. 50 lakhs.
- The individual should not be a director of any company.
- If the individual is not having foreign assets or property.
ITR-2 Form can be used by the (HUF) Hindu undivided family or any individual taxpayer. There are almost the same conditions to fill out the ITR-2 form as the ITR-1 form. Details are given below.
- There are minor differences in ITR-2 Form than ITR-1. The total income of the individual taxpayers should be more than 50 lakhs when received through the house property, pension, lottery, or any other activity.
- If the individual’s income earned through agriculture is more than Rs. 5000. That individual is eligible to fill out ITR-2.
The newly ITR-3 form is for both an individual taxpayer and (HUF) Hindu undivided family whose source of income is business and profession. Following are the eligibility criteria.
- When an individual earns income through profit, a commission
- When you are the director of a company.
- If Your income is through the partnership of any firm.
- If any individual taxpayer made investments in the unlisted shares during the financial year.
This ITR-4 is used by the individual, (HUF) Hindu undivided family or partnership firms. ITR-4 is also named Sugam. Eligibility is mentioned below to fill out the form ITR-4.
- If any individual is getting income through the business as per the income scheme under sections 44AD and 44AE.
- When an individual’s income is through the profession as per the presumptive income scheme under section 44AD.
- If the income is from house property but is not more than Rs.50 lakh.
- When an individual wants to fetch his income on a presumptive basis then it is taken as a presumptive scheme under the sections 44AD, 44AE, and 44ADA.
The ITR-5 form was introduced for the AOPs (Association of Person), LLPs (Limited Liability Partnership), BOIs (Body of individuals), AJP ( Artificial Juridical Person), Investment funds, and Business trust, and local authorities. As per the reference in section 2(31)(vii), this form is for the person who belongs to a firm, AOP, BOI, LLP, artificial juridical person, business trust and investment fund, or local authority. ITR-5 should not be used by the person who has to file the income return under sections 139(4A), 139(4B), 139(4C), and 139(4D).ITR-6
ITR-6 is for Those companies who do not claim an exemption under section 11(Income from property held for charitable or religious purposes). ITR-6 Form is to be filled out by the companies who do not claim tax exemption on their income under section 11 of the income tax act. This tax return must be filled only by electronic methods.ITR-7
Those AOPs (Association of Person), LLPs (Limited Liability Partnership), BOIs (Body of individuals), AJP ( Artificial Juridical Person), Firms and Companies have to file income tax returns through the ITR-7, If their claim exemption is under the following details.
- If their income comes from the religious and charitable trust Under section 139(4A).
- If they are getting income from political sources under section 139 (4B).
- If their income is through scientific research under section 139 (4C).
- If they are having income from the university or colleges under section 139 (4D).
Taxpayers who are not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C) or Section 139 (4D) are not eligible to provide ITR-7 form for Income Tax Return.
2. Who needs to file ITR?
A registered firm or company with yearly income needs to file income tax returns. Though they have not gained any profit yet have to file the ITR. Any person who possesses an asset outside of the country or any profit gained property in foreign, that person must file an income tax return. All those NRI or non-resident Indians who earned income is more than the basic exemption limit, are eligible to file ITR. Any individual whose yearly income is more than 2.5 lakh basic exemption limit.
3. What are the required documents to file ITR?
Before filing Your income tax return, it is important to know about the essential documents required for the filing process. We have mentioned below all the important documents for filing the ITR. You should have a bank saving account passbook, PAN card, Aadhaar card, and salary slip.
Form-16 is used as proof of filing income tax returns by the employer to the government. The form-16 is an income tax form for the companies, firms, and unorganized corporations to give their employees details about the deducted tax. This form contains all the details like net salary, HRA and LTA exemptions, gross taxable salary, tax-saving deductions, salary TDS, and any loss that happened with the employee.
Form-26AS is a compact annual tax statement that contains information about tax deducted or collected at the source and TDS on various salaries, interest, self-assessment, and advances tax. The Budget for 2020-21 had declared the modified Form 26AS providing a more comprehensive profile of the taxpayer going further the details of tax organized and deducted at source.
This Form consists of all the details about TDS deducted on interest received from deposits like FD or RD bank deposits. This is basically a certificate that every employer provides his/her employee. Form-16 contains all the sources of income of the individuals.
Form-16B is a type of certification that contains the details of the total TDS amount deducted on account of the property sale. In simple words, This is a TDS certificate for all TDS deducted upon a property sale.
Form 16C contains information about the deductor and deductee such as PAN number, certificate number, the financial year of deduction, unique acknowledgment number, the rent paid, date, and amount of tax deducted and deposited.
9. How to file ITR online?
Before proceeding further, We should make sure that we have all these valid documents which are PAN, Aadhaar, Bank account details, investment details, and Form-16.
Following are the steps -
- First login to the myitronline account. If you have the form-16 then click on the “upload form-16 PDF” but in case you do not have this form in PDF format then press on continue.
- Fill out personal details such as PAN, date of birth, and Name as mentioned on PAN. Name of the father, and address.
- Fill out the details about your salary, profession, or employer type and name along with TDS information.
- Enter the details of investment for claiming the deduction.
- Fill in the details of taxes paid. You can fill in these details by uploading the form-26AS along with the self-assessment tax paid in a relevant financial year.
- Feed the details of your bank account and go ahead for e-filing and click on proceed to e-filing. If you notice any option of ‘Refund’ or ‘No Tax Due’, Click on proceed to e-Filing. You will get a declaration number on the next screen.
- Lastly, Click on the e-verify income tax return when your return is filed.
10. How to Check Your ITR Status Online?
When you are done submitting your tax return, you can check the status of it online easily on the ITR official website of the Government of India. There are two methods to check the status online. These are given below-
WIth login details - You have to go to the website of e-filing income tax return and with the details such as username and password. Click on the tab “View returns or forms''. Now Choose the assessment year as well as income tax returns from the given menu. You will get the result whether your ITR was verified or not.
Without login details You have to go to the website of e-filing income tax return, you will see an ITR status link on the left side of the corner, Click on that ITR status link displayed on the website. You will be redirected to a page where you need to fill out details of your PAN number, ITR declaration number, and captcha code. You will see tax filing status once you have fed the data in.
Frequently Asked Questions
Who is exempted from ITR?
Those registered taxpayers whose net income is below the exemption limit of Rs.2 .5 lakh, don't have to file ITR by using the ITR-1 form.
What is the minimum income to file ITR?
The minimum income to file ITR should be up to 2.5 lakh as per the financial year of 2021-22.
Should I file ITR if my income is less than 5 lakh?
Yes. You have to file ITR even though your income is less than 5 lakh.
Do salaried employees need to file ITR?
Yes. Salaried employees whose income is up to 5 lakh must file an income tax return with the ITR-1 form.
What happens if I don't file ITR?
In case you are unable to file ITR. It can lead to penalties or imprisonment of 3 months to 2 years.
Is ITR mandatory for government employees?
No. As per the rule of income tax, It is not compulsory to file income tax returns for government employees if their income is less than the taxable limit.
From where can you download these ITR forms?
You can download ITR forms from the website of Income Tax.
Is Form 15H unrestricted for (HUF) Hindu Undivided Family?
No. (HUF) or Hindu undivided family can not fill out the form-15. This form is not functional for HUF
How to link PAN to Aadhaar?
There are two simple methods to link your PAN to Aadhaar. You can do it by e-filing login on the income tax portal.
How to apply for the PAN card?
You can apply for the PAN card through the online method. This procedure is easy and convenient. You just need to fill out the valid information and submit the required documents. https://tin.tin.nsdl.com/pantan/StatusTrack.html. You can visit this website to submit the application online.
How do I check my ITR status?
Any individual can check their ITR status on the following website. You will need your PAN details and ITR declaration number. https://www.incometaxindiaefiling.gov.in/e-FilingGS/Services/ITRStatusLink.html?lang=eng
What is the late fee for filing ITR with a due date?
The late fee for filing ITR is Rs. 5000 with the due date before the 31st of December 2020. However, the late fee for return filing is Rs. 1000 which should not exceed more than this if the net income of the individual is below the Rs.5 lakh.
Can I file an ITR in the case of a loss in business, house property, or sale of shares?
Yes. you have to file ITR even though the loss of business or interest is paid on the home loan. Make sure to file ITR before the last date.