What is Income Tax Return?

The income tax return is a form used by income tax department to collect the data related to the income from companies, individuals, HUF’s, firms, association of persons & trusts. It is mandatory to file the income tax return for all the persons except individual’s & HUF’s having income less than a certain amount. The income tax compliance includes filing of income tax return to income tax department. There are various kinds of income tax return forms applicable on the basis of type of person or on the basis of source of income.

What are Types of Income Tax Return?

Form : ITR-1
For ordinary resident individual having total income up to ₹ 50 lakh & salary, one house property & other sources & agricultural income up to ₹ 5,000/- only. Not for individual who is either a director in a company or invested in unlisted equity shares

Form : ITR-2
For individuals & HUFs ‘NOT’ having income from profits & gains of business or profession

Form : ITR-3
For individuals & HUFs having income from profits & gains of business or profession.

Form : ITR-4
For resident individuals , HUF’s, firms (other than LLP) having total income up to ₹50 Lakh & income from business or professions & computed u/s 44AD, 44ADA & 44AE. Not for individual who is either a director in a company or invested in unlisted equity shares

Form : ITR-5
For firms (Including LLPs), AOPs, unregistered society

Form : ITR-6
For companies other than companies claiming exemption under section 11

Form : ITR-7
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) (Registered Trust, AOPs etc.)

What are the Due Dates and Late Fees?

• 31st July: individuals not liable for tax audit; partnership firms/LLPs not liable for tax audit
• 30th September:  Individuals liable for tax audit; Partnership firms/LLPs liable for tax audit; All Companies

Late Filing Fees u/s 234F

A late filing fee will be applicable for filing your returns after the due date i.e. 31 July or 30th Sep under section 234F. The maximum penalty is Rs. 10,000.

If you file your ITR after the due date (31 August) but before 31 December, a penalty of Rs 5000 will be levied. For returns filed later than 31 December 2019, the penalty levied will be increased to Rs.10,000. There is a relief given to small taxpayers – the IT department has stated that if the total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1000.

To summarize the section 234F:

BENEFITS OF INCOME TAX RETURN FILING

• Hassle free Loans & Foreign Travel
• To claim refund for Excess tax paid
• Carry-forward Losses of Current Year
• To Claim Compensation in accidental cases
• Mandatory for Tendering purposes

What is included in Our Package?

• Computation of Total Income
• Consultancy to claim expenses and various tax deductions
• Calculation of Correct Tax
• Preparation and Filing of ITR
• Dedicated CA for your Tax Return

Documents required for Income Tax Filing in India

• Bank statements
• Proof of investments
• T.D.S. Certificates in Form 16 or 16A as applicable
• Documents on purchase and sale of investments/assets
• Challan of tax paid such as advance tax or self-assessment tax
• If PAN is applied but not received, a copy of filed PAN application and its acknowledgment
• In case not applied for PAN, a PAN application form duly filled in and two passport size photographs
• For businesses - a copy each of the audit report, balance sheet, trading, profit and loss account, personal account of proprietor or partners
• Statement of receipts and payments when no regular books are maintained
• Receipts of payment of insurance premium, provident purchase of NSCs, new equity shares, mutual fund, NSS, donations, etc. to support claimed deductions

Deliverables

• Duly Filed Income Tax Return and Acknowledgment
• Balance Sheet and Profit & Loss (If Applicable)
• Copy of Income Tax Return Challan