What is ITR?
ITR (Income Tax Return) is a form that taxpayers are believed to submit to the Income Tax Department of India. In this form, All information related to the taxpayer’s yearly income and the whole amount of tax to be paid is mentioned along with a refund that needs to be credited for that specific year. The Department of income tax has announced seven types of forms to date. The Relevancy of these ITR forms differs on the basis of earned income, source of the income of tax-payer, and category of income. We have mentioned all seven ITR forms below with details.
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 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.
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).
Using the eligibility checker of Myitronline
- Go to the home page and scroll down to the bottom where you will see “Myitronline Eligibility Checker” click on the tab.
- A new page will be opened where you can see a tab asking for your date of birth and annual income. enter the details carefully in the column and click next.
- After clicking on Next, a new page will show up where you have to answer the questions as Yes or No.
- Now you will be redirected to a page that asks about your basic details like Full name, email ID, Phone number, etc. Fill in all the details correctly and click on the “Next” button.
- The Myitronline eligibility checker shows you whether you should file ITR or not. In case you need to file ITR then click on the button of the “ File ITR Now” Option.
Benefits of filing ITR
If you are willing to know the benefits of filing an income tax return, here you will get clearance about the benefits that will help you to decide whether you should file a tax return or not. The key benefits are given below.
- Claim Tax Refund - If your total income is not more than the basic exemption limit and still tax has been deducted from your income then You do not have to pay any tax for that year, you will have zero tax liability. In this case, You can ask to claim a TDS refund by filing an income tax return.
- Easy Loan approval -Filing an income tax return can make the process of loan approval easy and convenient for individuals. It can help them whenever they want to apply for any loan.
- Effortless Visa processing -It was mandated for the last years that filed income Tax return documents must be provided in most of the embassies and consultants.
- Avoid penalties -In case. If you fail to file your income Tax return on time, then the income tax officer “As per the income tax act 1961” has the right to charge you with the penalties of Rs. 5000.