Overview of Income Tax Return Filing (ITR Filing)

Income Tax Return Filing refers to the filing of an ITR form which an individual submits to the Tax Department of India. This form contains information about the individual's income and the taxes paid by them. The ITR Filing is governed by the Income Tax Act 1961

Who is Eligible to File an Income Tax Return?

• Individuals (Indian residents & NRI's) – Necessary for those whose income exceeds the prescribed limit.
• Sole Proprietors
• Companies
• LLP, Partnership Firms (The ITR filing is compulsory for 'Partnerships Firm', 'Sole Proprietorship Firm', 'Companies', and 'LLPs' irrespective of their turnover, Income, profit, or loss.)

• Individuals earning Income from mutual funds, bonds, stocks, fixed deposits, Income from interest, house property, etc.
• Individuals obtaining Income from property under charitable trusts, religious trusts, or Income from voluntary contributions and those who want to claim tax refunds.
• Salaried persons whose gross Income before deductions under sections 80C to 80U exceeds the exemption limit.
• All individuals with foreign income and assets, NRI’s and technology professionals on onsite projects.

Types of ITR Forms 

The types of ITR Forms are given below:

• ITR 1 (Sahaj)

Individuals earning income from salary, single house property, agriculture, & Income from other sources. This form is to be filed by individual residents having total Income up to Rs. Fifty lakhs and agricultural Income up to Rs. 5,000.

Note: This is not applicable to an individual being director in a company, having invested in unlisted equity shares, or having foreign assets or foreign Income.

• ITR 2

This form is for individuals and HUFs earning from any source other than PGBP (profits and gain of business or profession). It may be from capital gain, lottery, foreign assets, etc., while total Income should exceed Rs. 50 lacs. In the case of agriculture income, it should exceed Rs. 5,000. Also, it is filed by those who invested in unlisted equity shares during the financial year.

• ITR 3

Individuals and HUFs have earnings from profits and gains of business or profession. It also needs to be filed by the individuals having their Income as a partner in a firm.

• ITR 4 (Sugam)

For Individuals, HUFs, and Firms (other than LLP), being a Resident has an entire Income of up to Rs.50 lakhs from business or Profession. It also covers those who have opted presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

Note

 This applies to individual director in a company or who has invested in unlisted equity shares

• ITR 5

ITR 5 is filed by firms, LLPs, AOPs (Association of Persons), Bois (Body of Individuals) etc.

• ITR 6

ITR 6 is filed by companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes).

• ITR 7

It is required to be filed by those falling under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D) that can either be individual or a company.

What are the Benefits of Income Tax Return Filing?

Following are the benefits of Income Tax Return Filling:

• It makes the taxpayer eligible for loan processing.
• It helps claim a TDS refund or any other tax paid in excess.
• Also, it allows carrying forward losses.
• It makes an individual a responsible citizen.
• Helps in avoiding penalty provisions.
• Considered as financial evidence for availing loan or visa.
• Helps the government to keep track of income of the taxpayer.

List of Documents required for Income Tax Return Filling

The following documents are required for Income Tax Return filling:

• Copy & PAN of Aadhaar
• Address details
• Bank Account details
• Additional disclosures regarding income from payroll & fixed deposits
• Data required for claiming deduction
• Data required regarding TDS return filing and advance tax payments
• Investment proof
• TDS certificate in Form 16
• Interest income certificate in Form 16A
• Form 26AS

Procedure for Income Tax ReturnFiling

The following procedure must be followed for Income Tax ReturnFiling. 

• Collection of necessary documents such as Form 16 (TDS Certificate issued by the employer in case tax is deducted from salary), Form 16A (The bank issues it for TDS deducted on the interest payment on the fixed deposit) in the TRACES format & capital gain statement.
•  Filing Form 26AS & cross-check with the TDS certificate to ensure that tax deducted from your salary or from your interest income is deposited with the government.
• In case of any error, rectify Form 26AS. If the error is not rectified, the taxpayer won’t be able to claim the credit on deducted tax.
• Calculation of total income chargeable to tax and tax liability 
• Filing of Income Tax Return after the payment of all the taxes. It is only after filing the tax return that the taxpayer claims the refund  

• Verification of Income Tax by Income Tax Department .

Penal Provisions

• Under section 156, a demand notice is given to the taxpayer for tax payment.
• The amount determined should be paid within 30 days of the notice at the place and to the person specified in the notice.
• If the taxpayer defaults the payment of tax due, he will be treated as an asscee in failure.
• Before levying the penalty, a fair opportunity of being heard is given to the taxpayer.

What are the Due Dates for FY 21-22?

Taxpayer	Due Date
Assessee whose books of accounts are not required to be audited	31st July
Assessee whose books of accounts are required to be audited	30th September
Assessee whose accounts are not required to be audited (not having international/specified domestic transactions)	31st October
Assessee having audited books of accounts and international/specified domestic transactions	30th November

Tax Rates - Income Tax Return Filing

Particulars	Tax Rate
When the turnover or gross receipt of the company does not go beyond Rs. 400 crores in the previous year	25%
Company opted for section 115BA	25%
Company opted for section 115BAA	22%
Company opted for section 115BAB	15%
Any other domestic company	30%
In Case Of Co-Operative Society
Income Up to Rs. 10,000	10%
Income from Rs. 10,001 to Rs. 20,000	22%
Income above Rs. 20,000	30%

Slab Rates - Income Tax Return Filing

Annual Income	Slab Rate
Upto Rs. 2.5 Lakh	Exempt
Rs. 2.5 Lakh to Rs. 5 Lakh	5% tax rebate available U/s 87a
Rs. 5 Lakh to Rs. 7.5 Lakh	10%
Rs. 7.5 Lakh to Rs. 10 Lakh	15%
Rs. 10 Lakh to Rs. 12.5 Lakh	20%
Rs. 12.5 Lakh to Rs. 15 Lakh	25%
More than Rs. 15 lakh	30%

Note* for financial year 2021-22

 There are 70 deductions and exemptions that are not allowed. Some of the common ones are listed below In order to claim above mentioned tax rates, following exemptions and deductions allowed / disallowed.

Cannot Be Claimed Under New Tax Regime	Allowed
Deductions under chapter VIA	Contribution to pension account
Leave Travel Allowance	Transport allowance to handicapped
House Rent Allowance	Daily allowance given under certain conditions
Standard deductions of Rs. 50,000	Travel allowance or transfer
Entertainment allowance / employment allowance / Professional tax	Interest can be claimed in respect of loan taken on a rented out property
Interest repayment on housing loan / Interest paid on education loan	Gratuity
Family pension	Lump sum pension (1/3rd will be exempt if gratuity received or ½ will be exempt if not received)
Losses cannot be set off from previous assessment year	leave encashment on retirement up to Rs. 3 lakh
Depreciation cannot be claimed	Interest and maturity amount from PPF and Sukanya Samriddhi
Medical insurance premium	Maturity proceeds from the life insurance policy
PF contribution, tuition fee, life insurance premium or any other investment	Employer’s contribution to NPS, superannuation fund and EPF up to Rs. 7.5 lakh

Surcharge

Particulars	Rate
If total income exceeds Rs. 50 lakhs but not exceeding Rs. 1 Cr.	10% of the income tax
If total income exceeds Rs. 1 crore but not exceeding Rs. 2 Cr.	15% of the income tax
If total income exceeds Rs. 2 crore but not exceeding Rs. 5 Cr.	25% of the income tax
If total income exceeds Rs. 5 crore	37% of the income tax
Education cess	4% of income tax plus surcharge

Late Filing Fee for FY 2020 -2021

Penalty for Late Income Tax Return Filing U/S 234F

Due Date	Income Below Rs. 5 Lakhs	Income Above Rs. 5 Lakhs
31 December  2021	-	-
31 st December  2021 to 31st March 2022	Rs. 1000	Rs. 5000

Recent Amendments Regarding Income Tax Return Filing

• The term accounting period is replaced by calendar year ending as on 31 December 2021 in the new ITR Forms  which means that now the assess needs to furnish all the details of the foreign assets held by him between 1 January  2021 to 31 December 2021 in ITR for AY 2022-23
• Starting from FY 2020 -21 the amount of late fees is reduced from 10,000 to 5000 for the people whose income is above 5 lac but there is no change for the tax payers whose income is less than 5 Lack. The penalty is same as earlier i.e. Rs. 1000

Corpbiz Procedure for ITR Return Filing

Our Corpbiz experts will be at your disposal to assist you with guidance concerning Income TaxReturn Filing and its compliance for the smooth functioning of your business in India. Corpbiz professionals will assist you in planning everything seamlessly at the least cost, confirming the successful conclusion of the process.

It is advisable to appoint an attorney who has experience in Income Tax Return Filing to avoid the loopholes around the whole Income Tax Return Filing and to understand the requirement in detail.

Why Corpbiz?

Corpbiz is one of the best platforms aiming to fulfil all your legal and financial requirements and connect you to professionals. Yes, our clients are pleased with our legal service; because of our focus on simplifying legal requirements, they have consistently regarded us highly and provided regular updates.

Our clients can also track the progress at all times on our platform. If you have any questions about the ITR Return Filing, our experienced representatives are just a phone call away. Corpbiz will ensure that your communication with professionals is c seamless.

• Purchase a Plan for Expert Assistance
• Add Queries Regarding ITR Return Filing
• Provide Documents to Corpbiz Expert
• Prepare Application for ITRReturn Filing+ complete all Admissibility Criteria for Preliminary Screening
• Complete Procedural Actions
• Get your ITR Return Filing done at your Door Step!

The elementary information would be mandatory from your end to start the process. The Attorney will begin working on your request once all the information is provided and the payment is received.

Frequently Asked Questions