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?
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:
List of Documents required for Income Tax Return Filling
The following documents are required for Income Tax Return filling:
Procedure for Income Tax ReturnFiling
The following procedure must be followed for Income Tax ReturnFiling.
- Verification of Income Tax by Income Tax Department .
Penal Provisions
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
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.
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
Form 16 can be coined as Salary TDS- Tax Deducted at Source Certificate that an executive issue for the TDS subtracted.
The excess tax can be demand back as a return by filing your Income-tax return. It will be returned back into your bank account through 'ECS transfer'. It is necessary to make sure no errors are made while considering bank details such as 'account number', 'IFSC code' in the ITR form.
All the company and business entities need file ITR even if their total income or tax due is zero. In a matter of an individual, when revenue exceeds the basic exclusion limit, it is advised to file ITR to avoid investigation from the 'Income Tax Department'. Additionally, if your tax liabilities is zero and have offered the ITR before, it is essential to be filed.
Yes, finishing ITR in case of loss would be in your business itself. With online ITR filing, you can move forward the damages/losses to a specific expected financial year to set off losses upon the future profits.
In matter you fail to file the return on a scheduled date, there is a prerequisite to filing return up to a particular time. Nevertheless, with a late filing fee and reduced interests, the late arrival can be filed before the end of Assessment Year for the concerned financial year.
If it fails to deposit the TDS/TCS return on the due date appointed, then he shall be responsible for paying a sum of Rs. 200 for every day of the delay, Under Section 234E.