INCOME TAX RETURNS

Form ITR-1

Form ITR-1 (also referred to as SAHAJ popularly) has to be filed by individuals who have an income of not more than INR 50 lakhs from the following sources in a financial year:

Salary & Wages
Pension
Annuity
Advance Salary Paid
Leave Encashment
Fee, Perquisites, Commission, Profits in addition to or in lieu of Salary or wages
Transferred balance in recognized Provident Fund
Annual accretion to the recognized Provident Fund
Central Government Contribution or Employer Contribution to Pension account as mentioned in Section 80CCD of the Income Tax Act, 1961.

One House Property (does not include those cases in which income has been brough forward from previous years): If the taxpayer I the owner of a property from which he/she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession, the same would be taxable under the heading “Income from Business or Profession.”
Other sources (does not include income earned from winning lottery or race horses)
Agricultural Income (Up to INR 5,000)

DUE DATE FOR FILLING ITR FORM

ITR-2 form must be filed by individuals and HUFs on or before 31st July of every year.

Form ITR-2

Individuals who have their Income for the Financial Year through Salary or Pension, more than House Property, Income from Capital Gains, Income from foreign assets/Income, Income from business or profession as a partner (not proprietor) and other sources including lottery, racehorses, legal gambling are eligible to file their IT Return using ITR-2. Individuals who are not eligible to file using ITR-1, because of their income exceeding ₹ 50 Lakhs, also need to file using ITR-2.

DUE DATE FOR FILLING ITR FORM

ITR-2 form must be filed by individuals and HUFs on or before 31st July of every year.

Form ITR-3

who have income from carrying on a profession or from Proprietary business.

Income from carrying on a profession
Income from Proprietary Business
Along with income from a profession or proprietary business, return may also include income from House property, Salary/Pension and Income from other sources

Due date for filing income tax return is 31st July for Individuals and incase of tax audit 30th September for Businesses.

Form ITR-4

Form ITR-4 is used for filing Income Tax Return by those taxpayers who have opted for the presumptive income scheme under Sections 44AD, 44ADA and 44AE of the Income Tax Act, 1961. This is, however, subject to the business turnover limit of INR 2 crores, exceeding which the taxpayer would be required to file ITR-3. Presumptive Taxation scheme is a scheme that exempts the small taxpayers from maintenance of books of accounts.

Eligible to file Form ITR 4

Form ITR-4 is required to be filed by those individuals whose income comes from the following sources:

Business Income under Section 44AD/Section 44AE
Income from profession as per Section 44ADA
Income up to INR 50 lakhs from Salary/Pension
Income up to INR 50 lakhs from One House Property (does not include brought forward loss or loss to be brought forward under this head)
Income from other sources up to INR 50 lakhs (does not include winning from lottery or horse races)
Form ITR-4 can also be filed by freelancers in case their income does not exceed INR 50 lakhs.

Features of Presumptive Taxation Scheme

There is no requirement of maintenance of books of accounts
The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
Deduction of any business expense against this income is not allowed.

Form ITR-5

Eligible to file Form ITR-5?

A Firm;
Limited Liability Partnership;
Association of Persons (AOP);
Body of Individuals (BOI);
Artificial Juridical Person (AJP) referred to in Section 2(31)(vii);
Local Authority referred to in Section 160(1)(iii) or 160(1)(iv);
Cooperative Society;
Society registered under Societies Registration Act, 1860 or under any State law trust (except trusts eligible for filing Form ITR-7)
Estate of Deceased person
Estate of an insolvent
Business Trust referred to in Section 139(4E)
Investment Fund referred to in Section 139(4F)

Form ITR-6

Every Indian Resident with any source of income is required to pay tax to the government in the form of Income Tax. The government imposes tax on every entity such as individuals, HUFs, Companies, LLPs, Association of Person, Body of Individuals, and any artificial judicial person. Income Tax Return is the form filed to furnish the information to the government about Income incurred along with tax liability. The form filed would vary depending upon the type of entity filing the return.

Applicability to file ITR-6

Every Company irrespective of its structure registered under the Companies Act 2013 or earlier under the Companies Act, 1956, shall file Income Tax Return through form ITR-6. However, those companies whose income is from the charitable or religious organization are not required to file Form ITR-6 (exempt under Section 11).

The taxpayer liable to file Form ITR-6 must obtain an audit report under Section 44-AB. As per section 44-AB, an entity whose sales, turnover, or gross receipt exceed INR 1 Crore in the preceding financial year must compulsorily get its accounts audited from a Chartered Accountant.

Income Tax Notice Resolution

Income tax department provide notice for Various Reason like not filing income tax return, defect in filing of tax return or other instances

On receiving an income tax notice, there is no reason to be alarmed or frightened. However, the taxpayer must take steps to understand the nature of notice, the request or order in the notice and take steps to comply.

Types of Income Tax Notice

Notice u/s 143(1) - Intimation

This is one of the most commonly received income tax notice. The income tax department sends this notice seeking a response to the errors/ incorrect claims/ inconsistencies in an income tax return that was filed. If you want to revise the return after receiving this notice, it must be done within 15 days. Else, the tax return will be processed after making necessary adjustments mentioned in the 143(1) tax notice.

Notice u/s 142(1) - Inquiry

This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process. This notice can also be sent to necessitate a taxpayer to provide additional documents and information.

Notice u/s 139(1) - Defective Return

An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information. If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.

Notice u/s 143(2) - Scrutiny

An income tax notice under Section 143(2) is issued if the tax officer was not satisfied with the documents and information that was submitted by the taxpayer. Taxpayers who receive notice under Section 142(2) have been selected for a detailed scrutiny by the Income Tax department and will have to submit additional information.

Notice u/s 156 - Demand Notice

This type of income tax notice is issued by the Income Tax Department when any tax, interest, fine or any other sum is owed by the taxpayer. All demand tax notice will stipulate the sum which is outstanding and due from the taxpayer.

TDS Return Filing and TDS Due Date

However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. Those entities have TAN Registration must then file TDS returns. TDS returns are due quarterly

Due Date for TDS Filing

Quarter	Period	The due date for Filing Form 27Q
Q1	1st April – 30th June	On or before 31st July
Q2	1st July – 30th September	On or before 31st October
Q3	1st October – 31st December	On or before 31st January
Q4	1st January – 31st March	On or before 31st May

Failure to Furnish PAN

In case of non-furnishing of PAN or furnishing of incorrect PAN would result in the deductor incurring higher TDS at 20% rate and levy of penalty of ten thousand rupees.

TDS Certificate

On deducting TDS, the deductor would furnish to the deductee a TDS certificate. The deductee can cross check the tax credit by viewing Valid TDS certificate is the TDS certificate downloaded from TRACES .

S.No.	Form	Periodicity	Particulars
1	Form 24Q	Quarterly	Quarterly statement for TDS from “Salaries”
2	Form 26Q	Quarterly	Quarterly statement of TDS in respect of all payments other than “Salaries”
3	Form 27Q	Quarterly	Quarterly statement of TDS from interest, dividend or any other sum payments to non-residents
4	Form 27EQ	Quarterly	Quarterly statement of collection of tax at source

Form16- Issuance to Employees

Any person responsible for paying salary is required to deduct tax at source on the amount payable and issue Form 16 to the employees at the end of each financial year. TDS deposit and issue Form 16 to your employees.

Filing of TDS Return by Employers

Employers are required to file quarterly TDS returns with the Government providing details of tax deducted from salary. Information about tax deduction from salary under Section 192 is filed in Form 24Q. The employer at the time of filing TDS return would file the following information to the Government.

TAN of the employer
PAN of the employer
PAN of the employee
Details of tax deposited with Government with challan identification number
Amount if any paid to employees without TDS

Due Date for Filing TDS Returns by Employers

The due date for issuance of Form 16 is on or before June 15th of the financial year immediately following the financial year in which the tax is deducted. In case of Form 16A, the same should be issued every quarter.