Income Tax Return Filing in India

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Updated on : 26-Jan-2023 05:40 AM IST | 4 min read

Income Tax Return (ITR) - ITR Filing

ITR Filing for Individuals

As per Section 139(1) of the income tax act, 1961, any individual earning more than Rs 2.5 lakhs and crosses this specified exemption limit is liable to pay income tax return. It is mandatory for individuals to file income tax return if they are earning from the following sources –

Income from salary
Income from pension
Income from house property (except any case where loss has been brought forward)
Income from other sources
Agriculture income up to Rs 5000

Form ITR 1 or SAHAJ is used for filing tax return by taxpayers whose earnings are up to Rs 50 Lakhs.

Business Tax Return Filing

Filing of business tax return depends upon the type of business you are doing – whether it is Sole Proprietorship, Partnership Firm, Private Limited Company or Limited Liability Partnership (LLP). It is mandatory for businesses to file books of accounts, if they meet any of the following conditions mentioned below –

If total income is more than Rs 1,20,000 or
If total sales, turnover or gross receipts exceeds Rs 10,00,000

As per Section 44AD and 44AE of the income tax act, Form ITR 4 is used by the businesses to file income tax return in case they opt for the presumptive income scheme.

ITR Filing for HUFs

Any HUF having income of more than Rs 50 Lakhs needs to file ITR 2 while filing income tax return. It is mandatory for individuals and HUF’s to file income tax return if they are earning from the following sources –

Income from salary
Income from pension
Income from house property
Income from other sources (except lottery winning & income from race horses)

ITR Filing for Trusts

Any trust earning income of more than Rs 25 Lakhs and crosses this specified exemption limit set by the income tax department is liable to pay income tax return. Following trusts are needed to file income tax return mandatorily to the income tax department –

Research association
News agency
Association or institution
Fund or institution
Mutual fund
Investor protection fund
Securitization trust
Trade union
Core settlement guarantee fund
University or other educational institution
Body or authority or board or trust or commission
Venture capital company or venture capital fund
Business trust
Infrastructure debt fund

Form ITR 5 or ITR 7 is used by trusts to file income tax return. ITR 5 is filed when the income earned by trust is more than the basic exemption limit whereas form ITR 7 is used when ITR is filed under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) mandatorily as per income tax act.

ITR Filing for Partnership Firms

Form ITR 5 is used by the partners in a partnership firm to file income tax return. You must maintain all your business records and share the same with income tax department, as and when required. The rate of income tax charged from a partnership firm is 30%. Partnership firms are also liable to pay 12% income tax surcharge in case their total income goes beyond Rs 1 Crores. Along with this, education cess and secondary higher education cess is also paid by the partnership firm.

NRI Tax Return Filing

NRI tax return filing is basically a tax return filed by the individual who is a citizen of India or a person of Indian origin but not a resident of India. It is filed by NRI’s living in other countries of the world. NRI’s should file the return or not depends upon its taxable income which they earn in India.

Before filing NRI return, NRI’s identify their residency status to know whether they are eligible for paying income tax or not. For example – An NRI earning from a house property in India as a landlord must pay income tax to the tax department, if he or she is earning rental income from property in India and the amount is also exceeding the exemption limit specified by the tax department. NRI needs to pay tax on the following types of income –

Any income which accrues or arises in India.
Any income received here in India
Any income which is deemed to accrue or arises in India
Any income which is deemed to be received here in India

Who should file income tax return?

The following persons can file income tax returns to the income tax department –

An individual earning taxable income from salary or pension has to mandatorily submit their tax return to the income tax department.
An individual earning income from house property, capital gains, FD, interest etc. has to mandatorily file tax returns to the IT department.

An individual has to mandatorily file income tax return in India in the following conditions –

If an individual gross total income is above Rs 2,50,000 (For ages less than 60 years), above Rs 3,00,000 (for ages between 60-80 years) and above Rs 5,00,000 (for ages 80 years and above) before availing deductions.
In case it is a company or a firm (irrespective of the P&L made in a financial year)
In case you need to claim a tax refund
In case you are Indian resident but your assets or financial interest lies outside India.
In case you are Indian resident but a signing authority in a foreign account too.
In case you are applying for a loan or visa.
In case individual receives income from property held under a charitable or religious trust or political party or a research association, trade union, educational or medical institution, hospital infrastructure debt fund, not for profit university or educational institution, any authority, body or trust.
In case NRI derives all of his/her income through sources in India will be liable for tax in India.

Why you should file Income Tax Return?

The benefits of filing ITR returns are as follows -

It is a proof of the financial status of an applicant.
It helps in applying for loans.
It helps in carrying forward capital losses
ITR receipt is a useful document and used for visa processing
ITR receipt can also be served as an address proof
In case you need to file a government tender, it is essential to show ITR receipt for previous years.
You can avail various deductions under Section 80C to 80U and can claim refund from the income tax department too.

Documents required for Income Tax Return Filing in India

Type of income	Name of document
Salary Income	Form 16
Income from business or profession	TDS certificate Balance sheet Income tax payment challan copy Audit records (If applicable)
Income from other sources	Interest or TDS certificate form Bank Bank account passbook or statement of interest earned from savings account Rent agreement (if applicable) Dividend warrant Any other documentary proof (If required)
Capital gains income	Valid proof of sale/purchase receipts for all capital assets Purchase & sale deeds of immovable property A Contract note or Demat account statement for sale or purchase of securities.
Tax saving investments	FD receipt Medical insurance receipt Payment receipt of life insurance premium Donation payment receipt Tuition fee payment receipt Home loan repayment receipt Education loan payment certificate Mutual fund consolidated statement (CAS) Public provident fund passbook
Trust	Form 10A Copy of trust deed Documents evidenced for incorporation of trust Accounts copy for last 3 years immediately preceding the year of application in which the application is deposited (If applicable)

Due Dates for filing Income Tax Returns

The due dates for filing IT return are shown in the table below -

Taxpayers	ITR Filing Date
All individuals, HUF’s, Association of persons, body of individuals who needs to file ITR return and not liable for accounts audit lies into this category	30^th Nov of the relevant assessment year
All individuals, companies (sole proprietorship firms, partnership firms), persons of firms who needs to file IT returns and liable for accounts audit lies into this category	31^st October of the relevant assessment year as per Finance Bill 2020 (Previously it was the 30th Day of September)
Taxpayers who required to furnish reports u/s 92E	30^th November of the relevant assessment year
Deadline for filing late income tax return for all individuals & companies	31^st march of the immediate next year

Last Date for filing of income tax return for FY2018-19 has been extended to June 30.

Penalties for not filing ITR

The penalties for not filing ITR are given in the table below –

E-filing date	Income below Rs 5,00,000	Income above Rs 5,00,000
Up to 31st July 2020	0	0
Between 31^st July to 31^st December 2020	Rs 1000	Rs 5000
Between 1^st January 2020 to 31^st march 2020	Rs 1000	Rs 10000

How to file Income Tax Returns?

Offline Procedure of Filing Income Tax Returns

In order to file your income tax return offline, the procedure for the same is given below –

Step 1 - In the first step, visit the income tax department website www.incometaxindia.gov.in and choose e-filing option.

Step 2 - After selecting the option, you will be redirected to another website where you easily select and even download the ITR form required by you.

Step 3 - For particular assessment year, IT department contains two utilities – Excel utility and Java facility. You can easily choose any of them.

a) In Case You Choose Excel Utility

After downloading the excel utility, fill the form after opening it.
Validate all information; calculate tax and click on generate XML.
Save your form and upload the same on the e-filing website of the income tax department.
After uploading the form, attach all the required documents and click on submit.

b) In Case You Choose Java Utility

After downloading the java utility, open it and click on “prefill”.
Then, you have to enter used ID, password, date of birth/date of incorporation and choose prefill address.
Enter your details & calculate the tax.
Save the XML file and click on submit.

Online Procedure of Filing Income Tax Returns

The procedure of filing income tax return is as follows –

Step 1 - Go to Income tax department portal www.incometaxindia.gov.in and register yourself. Your PAN will be your User ID and you have to make unique password online to login your account.

Step 2 - Check your tax credit statement - Form 26AS which gives you information about all the taxes deducted by the income tax department in the previous financial year.

Step 3 - Ensure that the calculated TDS shown in form 16 should match with the ones in 26AS statement.

Step 4 - In the fourth step, click on income tax return forms and choose the current financial year. You can easily download the ITR form from the income tax website. One more option is there to complete the process on the e-portal itself by clicking on “E-file ITR” link.

Step 5 - You can use spreadsheet through MS-office, open office or other online spreadsheet application. It can be filed easily by filling details taking the help of form 16.

Step 6 - Click on “Calculate tax” to calculate the amount of tax you need to pay. If applicable, pay the calculated tax and fill the challan details in the tax return after paying the same to the income tax department.

Step 7 - Check all information by clicking on “validate” tab

Step 8 - Generate the “XML file” and save the same on your computer.

Step 9 - Upload the return by selecting the previous XML file you saved into your computer. You will also get an option to digitally sign the file. In case you are having digital signature, click yes, else no.

Step 10 - After submitting the application, you will get the acknowledgement in the form of ITR-V. You can download the acknowledgement form and keep it with you for future reference.

Step 11 - In the last step, Send the printed copy of ITR-V to the income tax department via normal or speed post within 120 days from the date of submitting the return. You can also e-verify your tax return. After e-verifying the tax return, there is no need to send the copy of ITR-V to the income tax department via post. You can also contact FinacBooks for filing your returns online accurately.

Read Our Articles related to Income Tax Return Filing

How to File Income Tax Return Online?

In order to file your income tax return online, you need to register yourself on income tax portal for electronic procedure called e-filing.

How to File ITR with or without Form 16?

You can easily file ITR by matching form 16 with 26AS statement or by matching pay slips records with 26AS statement.

Income Tax Return or ITR Forms

Understand the tax structure forms & their structure – ITR 1, ITR 2, ITR 4, ITR 5, Form 15G etc.

How to Check your Income Tax Refund Status Online?

Easily check your refund status online by visiting official website of e-filing of income tax or website of NSDL TIN

How to download ITR-V Acknowledgement?

Easily download your acknowledgement number after submitting your tax return.

E-Verify Income Tax Return using Aadhaar Card and EVC

Easily e-verify your income tax return with the help of Aadhaar card after linking the same with your PAN card. You can also e-verify your return online with the help of EVC.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

ITR Filing FAQ’s

What do you mean by Income Tax Return?

Income tax return is a return submitted by individuals, HUF’s, association of persons, body of individuals, companies, Sole Proprietorships, partnership firms in order to show their income as well as tax to the income tax department.

My company deducts TDS. Do I still have to file my tax return?

It is necessary to file tax return even if company deducts your TDS. Tax return should be filed by each & every individual earning under the tax bracket in order to provide information about your income to the tax department.

Can I file income tax returns for years I missed?

Yes, you can file income tax returns for the year you missed till the end of its assessment year. For ex – In case you missed filing the tax for FY 2018-19, you can file it till 31st March 2020.

What is the difference between assessment year and Financial Year?

Financial year is the year for which the taxpayer has been accessed to pay income tax. Assessment year is the year immediately subsequent to the financial year. For ex – If financial year is 2017-18, then assessment year will be 2018-19.

Should I E-File Returns if I Earned Less Than Taxable Income?

It is not mandatory to file income tax return in case your income is less than the exemption limit of Rs 2.5 Lakh in a year as specified by the income tax department. In case you want to file the return, you can still file a nil return.

What happens if I don’t file ITR?

If you will not file ITR online, you may get a notice from the tax department and it can lead to prosecution too. You can face a jail term ranging from 3 months to 2 years on the basis of due tax amount.

Can we file back dated ITR?

As per the finance act 2016 amendment act, you can file your backdated ITR before 31st march of the subsequent assessment year. For ex – For financial year 2017-18, you cannot file your ITR after 31st march 2019.

How do I check my income tax return status?

You can easily check your ITR status online by the following 2 ways –

By entering your login credentials – Fill your login credentials and click on “View returns/forms”. Enter your PAN number; select the option “Income tax return” from the drop down list, select the assessment year and click on submit.
Enter acknowledgement number without making use of credentials – There is no need to open your income tax account, just click on “ITR status”, Enter the PAN number, acknowledgement number and Captcha code in the window.

You can use any of the two ways to know the status of your IT return – Whether it is showing ITR verified or it has been processed by the income tax department.

Can I file ITR for AY 2019/20 now?

Yes, you can only file your ITR for AY 2019-20 – before 31st march 2020 but not after that.

What is the last date to E Verify ITR?

The last date for e-verifying return is 120 days from the date you submitted your return to the income tax department.

How FinacBooks can help in Income Tax Return Filing?

Finacbooks is a leading Indian portal providing accounting, finance & taxation services to individuals and small businesses. We are having more than 10 years of experience helping individuals, HUF’s, Sole Proprietorship, Partnership firms in income tax return filing. We will help you through the entire process of filing Income tax return online. To avail the best deals on filing income tax return, kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com

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Due Dates

Due date for deposit of Tax deducted/collected for the month of December, 2022. However, all the sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan
Jan 07th ,2023
Due date for deposit of TDS for the period October 2022 to December 2022 when Assessing Officer has permitted quarterly deposit of TDS under 192, 194A, 194D or 194H
Jan 07th ,2023
Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of November, 2022
Jan 14th ,2023
Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of November, 2022
Jan 14th ,2023
Due date for issue of TDS Certificate for tax deducted under section 194M in the month of November, 2022
Jan 14th ,2023
Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of December, 2022 has been paid without the production of a challan?
Jan 15th ,2023

Income Tax Return Filing