Income Tax Returns are an important aspect for carrying out the financial Tax filing activities. The process is of huge significance for a salaried or a self-employed person. It is very crucial to file the income tax returns by the means of a correct income tax return form. There are different kinds of Income Tax Return forms meant for the different kind of companies and individuals. There are also forms of various kinds available for charities, cooperative societies, etc.
The Taxpayers who are filing their income tax returns need to determine the type of income tax return form before actually filing their returns. The form required is entirely depends on the income of an individual who is paying the tax or in some of the cases where the taxpayer owns certain assets abroad other than in India or earns income from the outer countries other than that in India.
Types of Income Tax Forms (ITR)
There are about nine types of income tax return forms that an individual who will be paying the tax is required to fill.
The below are the forms listed that are to be considered by the individuals when filing their ITR as per the Central Board of Direct Taxes.
The following are the ITR forms which are applicable for firms and companies:
Now let’s discuss these forms briefly.
This ITR form is also known by the name of Sahaj form. The ITR-1 form is to be filled individually by the taxpayer. Any other assessee who is liable to pay the tax will not be eligible to avail this form to file his/her returns.
The form is applicable for the following:
1. The who earn an income through salary or modes such as pension
2. The ones who earn an income from a single housing property.
3. The ones who have no income from any other business or who don’t possess any kind of income from the sale of any assets, i.e. Capital gains
4. The ones who do not possess any kind of assets or properties within India or outside the country.
5. The ones who have an agricultural income less than 5000.
6. The ones who earn income from various investments or sources such as Investments, Shares, Fix Deposits, etc.
7. The ones who have not earned income from any kind of windfall such as horse racing betting, lotteries, etc.
8. The ones who wish to culminate the income of their underaged children or spouse with the income of their own, in accordance with the criteria mentioned above.
This form is generally used by the ones who have an income through sales of property as well as from the countries outside India. People or the HUFs can avail this form in order to file their returns.
This form is applicable to the following:
1. The ones who earn an income through salary or through modes of pension.
2. The ones who earn an income through the sales of properties within India.
3. The ones who earn an income from more than a single housing property.
4. The ones who do not earn income from any kind of business.
5. The ones who own assets or properties outside India.
6. The ones whose agricultural income is above Rs Five Thousand.
7. The ones who earned an income from lotteries or horse racing.
The ITR-2A form was introduced for the financial year 2015-16 and is a new ITR form that can be used by a Hindu Undivided Family (HUF) or any individual taxpayer. The ITR-2A form is to be filed by the following:
1. The ones who earn an income by salary or by modes such as a pension.
2. The ones who earn an income from more than one housing property.
3. The ones who don’t possess any kind of income from other business or who have no income from the sale of any property, i.e. capital gains.
4. The ones who earn an income from a number of other sources such as Fixed Deposits, Shares, etc.
5. The ones who do not possess any assets or properties in countries other than in India.
6. The ones who earn an agricultural income less than Rs 5, 000.
7. The ones who have not earned from any kind of bets, lotteries, or horse racing.
This form is to be used either by an individual or a HUF who solely operates as a partner within a company or a firm but the one who as such does not conducts any kind of business under the firm or the one does not earn any kind of income from the business conducted by the company itself. This form is to be filed by the ones who possess a taxable income earned from a business in the form of the following received on account of a partner:
This form is meant for those who run a business of their own or are into a self-profession. This form is applicable for any kind of business, undertaking or profession with no limit on the earned income. Along with the income earned from the business, taxpayers also club any of the income that they receive from lotteries, salaries, house properties, etc. along with the income from their business. Any person ranging from a shopkeeper, a doctor, a designer, agents, retailer to a contractor is eligible to file their income tax returns using this form.
The ITR-4S form is also known by the name of Sugar Form and can be used by a person or a HUF for filing their ITR. The form is applicable for the following:
1. The ones who earn an income from any kind of business.
2. The ones who earn an income from a single housing asset.
3. The ones who do not earn an income through the sale of property within India, i.e. capital gains
4. The ones whose agricultural income is below Rs 5,000
5. The ones who do not possess any kind of properties abroad.
This ITR form is used under special circumstances and applies to businesses where the income earned is based on a speculative method of calculation.
This income tax return form is to be used only by the following entities for filing income tax returns:
1. Limited Liability Partnerships(LLPs)
2. Association of the persons (AOPS)
3. Artificial Judicial Persons
4. Local Authorities
5. The body of Individuals (Bois)
7. Co-operative Societies
The ITR-6 form is basically used by the companies or organizations that claim tax absolution as per Section 11. Such organizations that claim absolutions as per Section 11 are the organizations wherein the income received is accumulated from the property’s usability for the purpose of religion or for the purpose of charity. This particular ITR form can be only filed through online mode.
This form is to be considered by the people or companies that are required to submit their returns under the following sections:
Under the Section 139(4A)- Under the section, returns can be filed by those who receive an income from any of their property that is held for the purpose of charity or religion in the form of a trust or legal obligation.
Under Section 139(4B) - Under this section, returns are to be filed by political parties provided their total income earned is above the non-taxable limit
Under Section 139(4C) - Under this section, returns are filed by the following entities:
1. Any institution or association that is mentioned under Section 10(23A)
2. Any association involved with scientific research
3. Any institution mentioned in Section 10(23B)
4. Any news agency
5. Any fund, medical institution or educational institution
Under the Section 139(4D) - Under this section, returns are to be filed by entities such as colleges, universities or any other such institution wherein income returns or loss are not required to be provided in accordance with other provisions outlined in this section.
This was a brief report on the forms that are mandatory to be considered while you are filing your Income Tax Returns.
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