BBNC

Income TAX Return Filings for Individuals


Income Tax Return (ITR) is a form where taxpayers (Individuals and businesses) submit information about their income and tax payments to the income tax department of India. A Taxpayer should file for ITR before its due date. (Generally, it is 30th September of every year).
Get Start

Overview

Any Individual aged below 60 years is liable to pay income tax. if his/her income exceeds 2.5 lakhs in a financial year, individuals aged above 60 years and earns more than 2.5 Lakhs will have to pay taxes to the government.

It is mandatory to file ITR (Income Tax Return) in India by every taxpayer, one can do the same online or by taking the help of CA. The Income Tax Department has prescribed 7 ITR forms based on the type of taxpayers (Individuals, Companies, LLPs, etc.) and type of income (Salary, business, lottery, equity shares, etc.)

Below is the list of ITR forms applicable for Individuals

  1. ITR-1 or Sahaj: This return form is for Indian resident Individuals. whose total Income for the financial year does not exceed 50 Lakhs. This form needs to be filed by individuals whose income source is anyone, more or all below.
    1. Salary/Pension
    2. One house property
    3. Agricultural income up to INR 5000.
    4. Income from other sources (Excluding Lottery winning and Race horses)

  2. ITR-2: This return form is for Individuals and Hindu Undivided Family’s (HUF). Whose source of income is any one, more, or all of the below.
    1. Salary/Pension
    2. Income from one or more house property
    3. Income from other sources (Including winning from lottery and race horse)
      (Total Income form I to III should be more than 50 Lakhs)
    4. If you are a director in Company
    5. If you have investment in unlisted equity shares in that financial year
    6. Being a Non resident or resident not ordinary resident
    7. Income from capital gains
    8. Foreign income/assets
    9. Agricultural income more than 5000.

  3. ITR-3: This form is for Individuals and HUFs. Who have income from a proprietary firm or are carrying a profession. This form needs to be filed by individuals whose income source is any one, more, or all below.
    1. Business or profession
    2. If you are director in a company
    3. If you have investment in unlisted equity shares in that financial year
    4. Income from House property, Salary/Pension, capital gain and Income from other sources
    5. Income of a person as a partner in the firm

  4. ITR-4 or Sugam This form is for Individuals and HUF’s, Partnership firms (Not LLP). Which are residents having income from business or profession. It also includes those who have opted for the presumptive income scheme. This form needs to be filed by individuals whose income source is any one, more, or all below.
    1. Total income exceeds 50 Lakh.
    2. Income from more than one house property.
    3. Owning any foreign assets.
    4. Owning any foreign assets.
    5. Having signing authority in any account located outside India.
    6. If you are a director in company.
    7. If you have investment in unlisted equity shares in that financial year.
    8. Being a Non-Resident or resident not ordinary resident.
    9. If you have any brought forward loss or loss to be carried forward under any head of income.
    10. If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

The above 4 forms are for Individual taxpayers, the other three forms that are ITR-5, ITR-6, and ITR-7 are for Partnership firm/LLPs, Company, and Trust respectively.



Benefits of Filing ITR Return for Individual

Benefits/advantages of Income Tax Return Filings

Easy Loan Approval

Filing the Income Tax Returns helps individuals when they have to apply for a house loan or car loan. All major banks ask for a copy of tax return filings.

Quick Visa Processing

Most embassies and Consulates require individuals to furnish copies of tax returns for the past couple of years at the time of visa application.

Carry Forward Losses

If the ITR returns are filed within the due date, taxpayers will be able to carry forward losses to upcoming years. which can be used to set off against the income of upcoming years.

Works as Income & Address Proof

Income tax return document can be used as a proof of Income and Address.

Avoid Penalty

In case ITR is not filed, the tax officer deserves the right to impose a penalty of up to Rs 10,000. Besides this, a delay in filing ITR also makes one liable to pay interest. Filing ITR on or before the due date avoids penalty.

Checklist/Requirements

Following documents are required to file ITR returns

  1. PAN
  2. Aadhar
  3. Bank Account details
  4. Form 16
  5. Investment details

Process Of Filing ITR Return for Individuals

Step 1: Share the requirements and documents with us

Step 2: Verification of documents and income sources

Step 3: Calculation of Income Tax Return

Step 4: Filing for Income Tax Return

Step 5: Acknowledgement Received

Key Deliverables

  1. ITR Acknowledgement

  2. E-forms and Challans

Income TAX Return Filings for Individuals

Why Choose Us

  Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

  Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

  One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

  Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


How do I save income tax in India 2021 under Section 80C, 80D, and 80E?
Following are the Deductions through which you can save your tax:
  1. 80C: You can invest in various options like LIC, PPF, Tax Saving Mutual Funds, NSC, etc. Up to Rs 1,50,000
  2. 80D: You can save taxes by investing in Health Insurance. Up to Rs 1,00,000
  3. 80E: You can save taxes by paying the Interest portion of EMI on an Education loan. 100% of the interest paid up to 8 assessment years
Yes, the tax payer can claim/adjust the TDS, excess debited by his employer (in the same financial year) to the tax liability against his other income while filing the return.
Yes, partners have to file their individual returns. ITR-3 form applies to a taxpayer who is a partner in a partnership firm and earning salary/ payment, interest, and profits from the firm. The due date for filing the ITR of a working partner of a firm whose accounts are required to be audited is 30th September.
You cannot file Tax returns without Form-16. Form-16 contains TAN of Employer. Even if you file returns taking all 12 Pay Slips as Base - still the Return will not be processed till the relevant return of Employer’s TAN is available with Tax Authorities. It is not possible that Form-16 is not issued by the Employer till Dec. Even if you resign mid-FY, Form-16 is issued. Almost all Employer use Software for Salary processing - where Form-16 is auto-released. Check with your Employer.
If you are a non-salaried individual and have an income of more than 2.5 Lakhs in a financial year. Then we will have to look into your sources of income, then we will be able to guide you and help you with your Income Tax Return Filings.
You have to pay your taxes before filing your tax return. If you are a salaried individual. Then most of your tax liability is deducted from your salary by your employer in the form of TDS and paid to the government on your behalf. In case you are liable to pay advance tax, then you have to pay 90% of it before the 31st of March every financial year. You can file your ITR once the financial year ends.
Yes, you should file an ITR in case of losses, which may be from business or sale of shares or interest paid on a home loan. An ITR filing helps you to set-off the loss and also carry forward the loss to future years. Do note that you should file ITR on or before the due date.