Return of Income (ITR)

Who needs to file?

Every company and firm has to file ITR for every year without any condition. Every individual, HUF, AOP, BOI have to file ITR for every previous year for which total income without giving effect to deductions under Chapter VIA and exemption under section 10(38) exceeds the maximum amount not chargeable to tax. Every individual who is beneficiary or beneficial owner of any foreign asset, also has to compulsorily file ITR.

When to file?

The ITR can be voluntarily filed by anyone not required to file it. The due date to file the ITR is 31st July of the following year (assessment year) for the assessees who are not liable to audit under Income Tax Act or under Companies Act. For auditable assessees, the due date is 31st October (from AY 2020-21) and 30th November for those who have to file report u/s 92E for international transactions or specified domestic transactions. Belated return can be filed upto end of the assessment year with applicable late fee. Filed ITR can be revised at anytime before the end of the assessment year.

Which form to use?

ITR-1- SAHAJ Income Return Form [For Individuals having Income from Salary / Pension / Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)]

ITR-2 Income Tax Return form For Individuals and HUFs not having Income from Business or Profession

ITR-3 Income Tax Return form For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship

ITR-4S (SUGUM) Presumptive Business Income tax Return – For individual or a Hindu undivided family deriving business income and such income is computed in accordance with special provisions, referred to in section 44AD and section 44AE

ITR-4 Income Tax Return form For individuals and HUFs having income from a proprietory business or profession

ITR-5 Income Tax Return form For firms, AOPs and BOIs

ITR-6 Income Tax Return form For Companies other than companies claiming exemption under section 11

ITR-7 Income Tax Return form For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

Defective return

An ITR filed can be declared as defective if the assessing officer believes that the mandatory fields have not been filled and also if the self assessment tax has been left as unpaid.

Inquiry Before Assessment

The AO may issue a notice under section 142(1) for either requiring the assessee to file ITR if not filed, or ask for documents and records required to carrying out assessment.