Filing Income Tax Returns is a crucial responsibility for individuals and businesses in India. Filing ITR not only ensures compliance with law and financial transparency but it also facilitates taxpayers to claim refunds, avoid penalties and gain a financial track record.
Managing compliances like ITR filings can feel overwhelming, especially for small business owners and startups. At JKStartup360, we simplify the process by offering expert solutions tailored to your business needs. From understanding the type of ITR forms you need to file, to ensuring that your GST compliance is in order, we handle it all, saving you time and stress.
As per the Income Tax Act of 1961 and the Income Tax Rules of 1962, Indian citizens are required to declare their income, deductions, and taxes paid during the financial year by filing ITR forms before a due date. Filing ITR ensures that the government is aware of an individual's or business's earnings, allowing it to assess whether taxes have been paid correctly. There are seven types of Income Tax Return forms, each designed for specific categories of taxpayers.
Eligibility for filing Income Tax Returns (ITR) in India is determined by various factors such as income level, age, and the type of income earned. Here are the general criteria for filing ITR:
Individuals Below 60 Years of Age: For individuals with income from salary, one house property, and other sources.
Senior Citizens (60 to 80 years): If your total income exceeds ₹3 lakhs in a financial year.
Super Senior Citizens (Above 80 years): If your total income exceeds ₹5 lakhs in a financial year.
Business and Professionals: If you run a business or practice a profession under a proprietorship or partnership and your gross receipts exceed the threshold specified by the tax department.
Individuals Claiming Tax Deductions: If you want to claim deductions under Sections like 80C, 80D, etc., even if your income is below the taxable limit.
Salaried Class: If you want to claim a refund of tax deducted at source (TDS) or advance tax paid.
Non-profit Income: Individuals managing non-profitable trusts, Educational or medical Institutes, Research centers have to file ITR to show transparency.
NRI (Non-Resident Indians): If you have earned any income in India, regardless of your income limit.
Taxpayers with Foreign Assets: If you own foreign assets or have income from abroad.
Income from Other Sources: If you have income from sources like capital gains, dividends, or house property.
The Income Tax Department of India has designated seven different types of ITR forms based on different categories of taxpayers and income sources.
ITR-1 (SAHAJ): For Individuals who have earned up to 50 lakh from following sources of income:
ITR-2: For individuals and Hindu Undivided Families (HUFs) who have income from capital gains, more than one house property, and other sources, but do not have business income.
ITR-3: For individuals and Hindu Undivided Families who have income from a proprietary business or profession along with other sources.
ITR-4 (SUGAM): For resident individuals, Hindu Undivided Families, and firms (other than LLP) with a total income of up to ₹50 lakh from a business or profession and opting for the presumptive taxation scheme.
ITR-5: For partnerships, LLPs, and associations of persons (AOPs) that are not individuals or Hindu Undivided Families.
ITR-6: For companies other than those claiming exemption under Section 11 (which relates to income from charitable trusts).
ITR-7: For persons including companies who are required to furnish a return under sections like 139(4A), 139(4B), 139(4C), or 139(4D) (generally for trusts and non-profit organizations).
The last date of filing ITR varies based on if the taxpayers account is subjected to audit or not.
Due Date: July 31 of the assessment year.
Due Date: October 31st of the assessment year and November 30 of the assessment year for transfer pricing audit cases.
Depending on the assessee's sources of income, the required documents may vary. Below are the key documents essential for filing an ITR, which ensure accurate reporting of income, deductions, and compliance with tax regulations.
Basic Documents
Income Verification Documents
These documents are essential to verify the income you report in your ITR:
Investment Proof
Documents related to investments eligible for deductions, such as
Certificates to claim Deductions
You can file your ITR forms through either offline or online modes on the official website of the Income Tax Department, provided that the user is registered on the e-filing portal.
Here is a guide to help to you through the process:
Step1. Once you have logged in, go to the e-filing menu and then choose the Income-Tax Return option.
Step2. Select the relevant assessment year for which you are filing the return.
Step3. Select the appropriate ITR form based on your income sources and eligibility and proceed further and select an appropriate reason you are filing ITR for.
Step4. Fill in carefully all the necessary information in the ITR form. This may include:
Step5. Verify the Information to avoid any mistake.
Step6. Upload Supporting Documents such as Form 16, proof of deductions etc.
Step7. Incase of any liabilities you may be asked to pay the dues via e-payment gateway.
Step8. Choose a Verification method, this is necessary for confirming authenticity of your submission to the IncomeTax Department.
Step9. Submit your ITR once all details are filled and verified.
Step10. Download Acknowledgement for your records.
Avoid Penalties and interest: Filing ITR is mandatory for Indian citizens if their income exceeds the basic exemption limit. Any negligence in filing may result in penalties of up to ₹5,000. Additionally, an interest charge of 1% may apply for delayed payment, although the penalty can be exempted under certain conditions.
Tax Refunds: If you have paid more tax through TDS or advance tax than necessary, filing ITR on time allows you to claim a refund.
Carry Forward Losses: You can carry forward losses incurred from your business or investments to offset future taxable income.
Claiming Deductions: Filing ITR enables you to claim various deductions under sections like 80C, 80D, etc., which can reduce your taxable income.
Eligibility for Certain Benefits: Some government schemes and benefits may require proof of income, filing income tax return can make you eligible to claim these benefits.
For Proofing Purposes: Filing ITR serves as an important document when processing applications for Aadhaar, passports, and visas.
At JKStartUp360, we understand the nuances of Income Tax Returns. Our experienced professionals offer guidance and assistance throughout the filing process, ensuring accuracy and compliance. We will assist you in the meticulous preparation of all necessary documents, ensuring accurate reporting of income, deductions, and exemptions. With our end-to-end support, from document collection to filing and post-filing assistance, JKStartup360 aims to provide a seamless ITR filing experience, allowing you to focus on your core activities while we handle your tax obligations efficiently.
Individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities whose income exceeds the specified threshold limit are required to file income tax returns in India.
Common documents required for filing income tax returns include PAN card, Aadhaar card, Form 16 (if employed), bank statements, investment proofs, and details of any other sources of income.
Income tax is calculated based on the income tax slab rates applicable to different income levels. Various deductions and exemptions under the Income Tax Act may also apply to reduce the taxable income.
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