It is noticed that many persons faced very difficulties as to
how they can file income tax return (ITR) in which form. What are the
consequences for non filing of ITR. Also recently the procedure of the same has
been amended by the department. Hence, I am writing this article which will
cover the procedure in depth.
What is Income Tax Return (ITR)
Income
Tax Return (ITR) is a prescribed form through which the particulars of income
earned by a person in a financial year and taxes paid on such income are
communicated to the Income-tax Department.
Purpose of Income tax return
A tax return is
a form(s) filed with a taxing authority that reports income,
expenses and other pertinent tax information. Tax returns allow taxpayers to
calculate their tax liability,
schedule tax payments,
or request refunds for the overpayment of taxes. In most
countries, tax returns must be filed annually.
Benefits of filing of income tax
return
Income tax return gives
you a detailed picture of your total income earned during a year and taxes paid on it. Filing of return is also your duty and
earns for you the dignity of consciously contributing to the development of the
nation. Apart from this, your income-tax returns validate your credit
worthiness before financial institutions and make it possible for you to access
many financial benefits such as bank credits, etc.
Mandatory Filing of Income Tax
Return [Section 139(1)]
As per the Income Tax Act, 1961, in any of the following
situations, it is mandatory for every person to file an Income Tax Return in
India if -
(1)
If gross total income (before allowing any
deductions under section 80C to 80U) exceeds the maximum amount which is not
chargeable to income-tax (i.e. Rs 2,50,000 in Financial year 2020-21. This
limit is Rs 3,00,000 for senior citizens (aged above 60 but less than 80) or Rs
5,00,000 for Super Senior Citizens (aged above 80).
(2)
In case of a company or a firm irrespective of whether it has income or loss
during the financial year
(3)
In case any person want to claim an Income-tax refund
(4)
In case want to carry forward a loss under a head of income
(5)
Return filing is mandatory if a person is a Resident individual and has an
asset or financial interest in an entity located outside of India. (Not
applicable to NRIs or RNORs)
(6)
If a person is Resident and a signing authority in a foreign account. (Not
applicable to NRIs or RNORs)
(7)
In case a person is in receipt of income derived from property held under a
trust for charitable or religious purposes or a political party or a research
association, news agency, educational or medical institution, trade union, a
not for profit university or educational institution, a hospital,
infrastructure debt fund, any authority, body or trust
(8)
In case a foreign company taking treaty benefit on a transaction in India
(9) From Assessment Year 2020-21,
following additional categories of person are also required to file Income Tax
Returns if the threshold is crossed in Financial year 2020-21, even if they
have NIL income or income of less than Rs 2,50,000, Rs. 3,00,000 or Rs.
5,00,000 lakhs as the case may be:
(ii) Person
who has bought foreign exchange of over Rs 2,00,000
(iii) Person
who has paid an electricity bill of more than Rs 1,00,000,
(i)
(10)
Filing of return of income is mandatory in the
following cases:—
(i) RETURN OF INCOME OF
CHARITABLE TRUSTS AND INSTITUTIONS [Section
139(4A)]
Section 139(4A) of the Act, provides
that every person in receipt of income
Ø
derived
from property held under a trust or any other legal obligation wholly or partly
for charitable or religious purposes or
Ø
by
way of voluntary contributions referred to in section 2(24)(iia)on behalf of
such trust or institution
— shall, if its total income of the
trust (before allowing exemption under sections 11 and 12) exceeds the maximum
amount which is not chargeable to income-tax during the previous are required
to furnish a return of such income within the time allowed under section 139(1)
in the prescribed Form ITR-7 and verified in the prescribed manner as per the
provisions of Section 139(4A).
(ii) RETURN OF INCOME OF
POLITICAL PARTIES [Section 139(4B)]
A
political party is required to file a return of income if its total income
before claiming any exemption under section 13A exceeds the basic exemption
limit.
(iii)
RETURN OF INCOME PERSONS CLAIMING EXEMPTION UNDER SECTION 10 [Section 139(4C)]
The
following assessees shall be required to file return of income in Form No.
ITR-7 if the total income, without giving effect to the provisions of section
10, exceeds the maximum amount which is not chargeable to income-tax.
(a)
Research association referred to in section 10(21).
(b)
News agency referred to in section 10(22B).
(c)
Association or Institution referred to in section 10(23A).
(d)
Institution referred to in section 10(23B).
(e)
A University, Hospital or Other Institution referred to in sections
10(23C)(iiiab) and 10(23C)(iiiac) (with effect from assessment year 2016-17).
(f)
Mutual Fund referred to in section 10(23D).
(g)
Securitization Trust [section 10(23DA)]
(h)
Venture capital company or Venture Capital Fund [section 10(23FB)]
(i)
Trade Union Association [section 10(24)(a) or (b)]
(j)
Body or authority or Board or Trust or Commission [section 10(46)]
(k)
Infrastructure Debt Fund [section 10(47)]
v Such return shall be filed in the
same way as if it were a return required to be furnished under section 139(1).
(iv) RETURN BY
UNIVERSITY, COLLEGE OR OTHER INSTITUTION [Section 139(4D)]
Every
university, college or other institution referred to in section 35(1)(ii) and
(iii), shall file the return of income or loss and such return shall be deemed
to be a return under section 139(1) of the Income Tax Act.
(v) RETURN BY BUSINESS
TRUST [Section 139(4E)]
With
effect from assessment year 2015-16, every business trust, which is not
required to furnish return of Income or loss under any other provisions of this
section, shall furnish the return of its income in respect of its income or
loss in every previous year and all the provisions of the Income Tax Act shall
so far as may be, apply as if it were a return required to be furnished under
section 139(1).
(vi) RETURN BY INVESTMENT
FUND [Section 139(4F)]
Every
investment fund referred to in section 115UB, which is not required to furnish
return of income or loss under any other provisions of this section, shall
furnish the return of income in respect of its income or loss in every previous
year and all the provisions of this Act shall, so far as may be, apply as if it
were a return required to be furnished under section 139(1).
(vii) RETURN OF PERSONS
CLAIMING EXEMPTION UNDER SECTION 10(23C)
The
following assessees shall be required to file return of income in Form No. 7,
if the total income, without giving effect to the provisions of section 10,
exceeds the maximum amount not chargeable to tax.
(a)
ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION 10(23C)(iiiab)
With
effect from assessment year 2016-17, any University or other educational
institution existing solely for educational purposes and not for purposes of
profit, and which is wholly or substantially financed by the Government shall
be mandatorily required to file their return of income.
(b)
ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SECTION 10(23C)(iiiac)
With
effect from assessment year 2016-17, any hospital or other institution for the
reception and treatment of persons suffering from illness or mental
defectiveness or for the reception and treatment of persons convalescence or
persons requiring medical attention or rehabilitation, existing solely for
philanthropic purposes and not for purposes of profit, and which is wholly or
substantially financed by the Government shall be mandatorily required to file
their return of income.
(c)
FUND OR INSTITUTION REFERRED TO IN SECTION 10(23C)(iv)
i.e.
any other fund or institution established for charitable purposes which may be
approved by the prescribed authority (i.e. Chief Commissioner or Director General)
having regard to the objects of the fund
or institution and its importance throughout India or throughout any State or
States; or
(d)
TRUST OR INSTITUTION REFERRED TO IN SECTION 10(23C)(v)
i.e.
any trust or institution wholly of public religious purposes or wholly for
public religious and charitable purposes which may be approved by the
prescribed authority.
(e)
ANY UNIVERSITY OR OTHER INSTITUTION REFERRED TO IN SECTION 10(23C)(vi)
i.e.
any university or other educational institution existing solely for educational
purposes and not for the purpose of profit which is not financed wholly or
substantially by the Government and the aggregate annual receipt of such
institution exceeds one crore.
(f)
ANY HOSPITAL OR OTHER MEDICAL INSTITUTION REFERRED TO IN SECTION 10(23C)(via)
i.e.
Hospital or other Medical Institution existing solely for philanthropic
purposes and not for the purposes of profit and the aggregate annual receipts
of such hospital exceeds one crore.
Different modes of filing the return
of income
The
Return Form can be filed with the Income-tax Department in any of the following
ways, –
(i) by furnishing
the return in a paper form;
(ii) by furnishing
the return electronically under digital signature;
(iii) by transmitting the data in the return electronically
under electronic verification code;
(iv)
by transmitting the data in the return electronically and thereafter submitting
the verification of the return in Return Form ITR-V;
KEY NOTE
Where the return of income is filed in the manner given at
(iv) without digital signature, then the taxpayer should take two printed
copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer,
is to be sent (within the period specified in this regard, i.e., 120 days) by
ordinary post or speed post to “Income-tax Department – CPC, Post Bag No. 1,
Electronic City Post Office, Bengalore-560100 (Karnataka). The other copy may
be retained by the taxpayer for his record.
Who can file ITR manually (i.e. paper
returns)
It is mandatory to
file the income tax returns online for all the registered taxpayers whose has
taxable income. However, paper returns can be filed only
if
(a)
ITR is filed by an individual/ HUF; and
(b) Income during the assessment year is less than
Rs. 5,00,000/-; and
(c) There is no refund claimed in ITR being filed;
and
(d) By those who are
above 80 years of age and do not have any income during the financial year from
regular business or profession
Income Tax Returns Form (ITR)
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||
S. No.
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ITR
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Description
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1.
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ITR
1
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Also known as SAHAJ
For
Individuals being a resident (other than not ordinarily resident) having total income upto Rs. 50,00,000, having Income from Salaries, one house property, other sources (interest etc.), and agricultural income upto Rs. 5,000
[Not for an individual who is eitherDirector in a company or has invested in unlistedequity shares]
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2.
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ITR
2
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For
Individuals and HUFs not having income from profits and gains of business or
profession
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3.
|
ITR
3
|
For individuals and HUFs having
income from profits and gains of business or profession
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4.
|
ITR
4
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Also known
as SUGAM
For
Individuals, HUFs and Firms (other than LLP) being a resident having total
income upto Rs. 50 lakh and having income from business and profession which
is computed under sections 44AD, 44ADA or 44AE.
[Not
for an individual who is either Director in a company or has invested in
unlisted equity shares]
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5.
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ITR
5
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For
persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
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6.
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ITR 6
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For Companies other than companies
claiming exemption under section 11
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7.
|
ITR
7
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For
persons including companies required to furnish return under sections 139(4A)
or 139(4B) or 139(4C) or 139(4D) only
|
ITR
V
|
It
is the acknowledgement of filing the return of income.
|
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(1)
ITR-1 Form (Also known as SAHAJ)
Also known as SAHAJ
- For Individuals resident and ordinarily resident (ROR) having total income
upto Rs. 50,00,000 from Salaries, one house
property, other sources (Interest etc.)
Eligible to File ITR 1
ITR
-1 Form is a simplified one-page form for individuals having income up to
Rs 50 lakh from the following sources :
(i) Income from Salary or Pension
(ii) Income from One House Property
(except in case of losses brought forward from preceding years)
(iii) Income from Other Sources (excluding
winning from Lottery and Income from Race Horses)
In the case of clubbed Income Tax Returns, where a spouse or a minor is included in the returns, this can be done only if their income is limited to the above specifications.
Not-eligible
to file ITR-1 SAHAJ
Individuals who are not eligible to fill the ITR-1
SAHAJ form are those who have earned Income through the following means:
(a) is a Director in a company; or
(b) has held any unlisted equity shares
at any time during the previous year; or
(c) has any asset (including financial
interest in any entity) located outside India; or
(d) has signing authority in any account
located outside India; or
(e) has income from any source outside
India.
This ITR – 1 form also cannot be used by an individual who has any
income of the following nature during the previous year:-
(a) Profits and gains from business and
professions; or
(b) Capital gains; or
(c) Income from more than one house
property; or
(d) Income under the head other sources
which is of following nature:-
(i) winnings from lottery; or
(ii) activity of owning and maintaining
race horses; or
(iii) income taxable at special rates
under section 115BBDA or section 115BBE; or
(e) income to be apportioned in
accordance with provisions of section 5A; or
(f) agricultural income in excess of
₹5,000.
Further, ITR – 1 form also cannot be used by an individual who has any
claims of loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss to
be carried forward under the head “Income from house property”; or
(b) loss under the head “Income
from other sources”; or
(c) any claim of relief under section 90
and/or section 91; or
(d) any claim of deduction under section
57, other than deduction under clause (iia) thereof (relating to family pension); or
(e) any claim of credit of tax deducted
at source in the hands of any other person.
Submission
of ITR-1
The form can be submitted either online or offline.
Online/Electronically
(i) By
transmitting the data electronically and then submitting the verification of
the return in the form of ITR-V to CPC, Bengaluru.
(ii) By
filing the return online and e-verifying the ITR – V through net
banking/aadhaar
OTP/EVC.
OTP/EVC.
In case of Electronic Filing of
the form there are two alternatives. Firstly, if a Digital Signature is
obtained, the Form is uploaded online. Secondly, the Form is downloaded,
printed, signed, and a copy of the acknowledgement is sent by post to the
Income Tax Department's office in Bangaluru. within 120 days of e-filing.
ITR V can be verified online using Aadhaar Card or Electronic Verification Code (EVC). The EVC can be generated either via One Time Password sent to email and registered mobile number (if income is less than Rs. 5,00,000) or via Net Banking. After online verification Income Tax Assesses is not required to send ITR V to Bangalore CPC.
Offline
(in paper form)
Only the following persons have the
option to file the return in paper form
(i) An
individual at the age of 80 years or more at any time during the previous year
(ii) An
individual whose income does not exceed Rs 5 lakhs and who has not claimed any refund in the return of income
For offline, the return is furnished in a physical paper form. The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.
Annexure-less ITR – 1 Form (SAHAJ)
No document (including TDS certificate) should be attached to ITR – 1 Form.
(2)
ITR- 2 Form
The ITR-2 is filed by the individuals
or HUFs not having income from profit or gains of business or profession and to
whom ITR-1 is not applicable. It includes income from capital gains, foreign
income or any agricultural income more than Rs 5,000.
Eligible to File ITR 2
The taxpayers who are eligible for
filing ITR-2 form are the persons whose source of income is as mentioned below:
(i) For
Individuals and HUFs not having income from profits and gains of business or
profession
(ii) A
resident having any asset located outside India or signing authority in any
account.
(iii) A
non-resident or not-ordinary resident.
(iv) Taxpayers
who earn agriculture income above Rs. 5000/-.
(v) Income
from winnings of a lottery, horse race, gambling, etc. under the head of other
sources.
(vi) Both
short and long-term capital gains/losses from the sale of property/
investments/ securities. (if there is only long term capital gain exempt under section 10(38) then ITR-1 can be filed)
Not-eligible to file ITR - 2
The
taxpayers who do not require to file ITR-2 form are as follow:
(i) Taxpayers who earn income from business or
profession
(ii) Taxpayers who are eligible for Income
Tax Return 1 filing
(iii) An individual who is designated as a partner
in a Partnership Firm
Annexure-less ITR – 2 Form
No
document (including TDS certificate) should be attached to ITR – 2 Form.
ITR – 2 Form can be filed with the Income-tax
Department electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic
verification code (EVC), or
(iii) by
sending duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the
following address –
“Post Bag No. 1, Electronic City Office, Bengaluru-
560500, Karnataka”.
The Form ITR-V should reach within 120 days from the
date of e-filing the return of income.
(3) ITR- 3 Form
The ITR-3
Form is applicable only to those Individuals and Hindu Undivided Families that
can be placed under the following categories
(i) Is
a Partner in a firm
(ii) Gains
Income through ‘Profits or gains of business or profession’
(iii) Gains
Income by means of interest, salary, bonus, commission, remuneration, as a
partner
Not-eligible
to file ITR - 3
ITR – 3 Form should not be used by an Individual
or HUF who is eligible to file ITR-1, ITR-2 or ITR-4. Individuals
and Hindu Undivided Families who are not eligible to fill the ITR-3 Form are
those who have earned Income through a Business or Profession operated as a
Proprietorship firm. Assessees, who apart from being a partner in a firm,
also have sources of income from a business or profession, including the
speculation market, are also not eligible to file their Income Tax Returns
through this form.
Annexure-less ITR – 3 Form
No
document (including TDS certificate) should be attached to ITR – 3 Form.
Manner of filing Form ITR - 3
ITR – 3 Form can be filed with the Income-tax
Department electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic
verification code (EVC), or
(iii) by sending duly signed paper Form ITR-V
(Acknowledgment) by post to CPC at the following address –
“Post Bag
No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
The Form
ITR-V should reach within 120 days from the date of e-filing the return of
income.
KEY NOTE
In a case
where accounts are required to be audited under Section 44AB of the Income
Tax Act, 1961, it is mandatory to verify the return of income
electronically using a digital signature.
In case an assessee is required to furnish a
report of audit under Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC,
80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC of the Income Tax Act, the assessee
shall file such report electronically at least one month before the due date of
filing the return of income.
(4) ITR- 4 Form (Also known as SUGAM)
The ITR - 4 Form is applicable to those individual, Hindu
Undivided Families and Firms (other than LLP) being a resident who want to
declare their income from Business or Profession under Presumptive Income
Scheme of Income Tax under Section 44AD, Section 44ADA and Section 44AE of the
Income Tax Act.
Not-eligible to file ITR – 4 (Sugam)
Not-eligible to file ITR – 4 (Sugam)
(a) ITR – 4 (Sugam) Form should not be used by
an individual who –
(i)
is a Director in a company; or
(ii)
has held any unlisted equity shares at
any time during the previous year; or
(iii)
has any asset (including financial
interest in any entity) located outside India; or
(iv)
has signing authority in any account
located outside India; or
(v)
has income from any source outside
India.
(b) ITR – 4 (Sugam) Form also cannot be used by an individual who
has any income of the following nature during the previous year :-
(i)
Profits and gains from business and
professions; or
(ii)
Capital gains; or
(iii)
Income from more than one house
property; or
(iv)
Income under the head other sources
which is of following nature:-
(1)
winnings from lottery; or
(2)
activity of owning and maintaining race
horses; or
(3)
income taxable at special rates under
section 115BBDA or section 115BBE; or
(v) income to be apportioned in
accordance with provisions of section 5A; or
(vi) agricultural income in excess of
₹5,000.
(c) ITR – 4 (Sugam)
Form also cannot be used by an individual who has any claims of
loss/deductions/relief/tax credit etc. of the following nature:-
(i)
any brought forward loss or loss to be
carried forward under the head “Income from house property”; or
(ii)
loss under the head “Income
from other sources”; or
(iii)
any claim of relief under section 90
and/or section 91; or
(iv)
any claim of deduction under section 57,
other than deduction under clause (iia) thereof (relating to family
pension); or
(v)
any claim of credit of tax deducted at
source in the hands of any other person.
ITR-4 Form (Sugam) is not mandatory
Form ITR-4 Form (Sugam) is a simplified return form to be used by an
assessee, at his/her option, if the assessee is eligible to declare profits and
gains from business and profession on presumptive basis under section 44AD,
44ADA or 44AE.
However, in
case the assessee keeps and maintains all books of accounts and other documents
referred to in section 44AA, and also gets his/her accounts audited and obtains
an audit report as per section 44AB, filling up the Form ITR-4 (Sugam) is not
mandatory. In such a case, other regular ITR forms viz. ITR-3 or ITR-5, as
applicable, should be used and not this Form.
Annexure-less ITR – 4 Form
No
document (including TDS certificate) should be attached to ITR – 4 Form.
Manner of filing Form ITR-4 (Sugam)
ITR – 4 (Sugam) Form can be filed with
the Income-tax Department in any of the following ways:-
(A) Electronically on the e-filing web
portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and
verified in any one of the following manner –
(i) digitally signing the verification part, or
(ii) authenticating by way of electronic verification code (EVC), or
(iii) by sending duly signed paper Form ITR-V (Acknowledgment) by post
to CPC at the following address –
“Post Bag No. 1, Electronic City Office,
Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
(B) In paper form, at the designated
offices of Income-tax Department, along with duly signed Form ITR-V. This mode
of furnishing return of income is permissible only in case of super senior
citizens (i.e. an individual of the age of 80 years or more at any time
during the previous year).
(5) ITR- 5 Form
For
persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person
filing Form ITR-7.
Eligible to File ITR 5
Eligible to File ITR 5
Form ITR – 5 can be used by
a person being
(i)
Partnership Firm,
(ii)
Limited Liability Partnership (LLP),
(iii)
Association of Persons (AOP),
(iv)
Body of Individuals (BOI),
(v)
Artificial
Juridical Person (AJP) referred to in section 2(31)(vii),
(vi)
local
authority referred to in section 2(31)(vi),
(vii)
Cooperative
society,
(viii) Society registered under
Societies Registration Act, 1860 or under any other law of any State,
(ix)
Trust
other than trusts eligible to file Form ITR-7,
(x)
Estate
of deceased person,
(xi)
Estate
of an insolvent,
(xii)
Business
trust referred to in section 139(4E) and investments fund referred to in
section 139(4F).
Not-eligible
to file ITR - 5
Form ITR – 5 cannot be used by,
a person who is required to file the return of income under section
139(4A) or 139(4B) or 139(4C) or139(4D).
Annexure-less ITR – 5 Form
No
document (including TDS certificate) should be attached to ITR - 5 Form.
Manner of filing Form ITR-5
ITR – 5 Form can be filed with the Income-tax Department electronically
on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in)
and verified in any one of the following manner –
(i) digitally signing the
verification part, or
(ii) authenticating by way of
electronic verification code (EVC), or
(iii) by sending duly signed paper Form
ITR-V (Acknowledgment) by post to CPC at the following address –
“Post Bag No. 1, Electronic City Office,
Bengaluru- 560500, Karnataka”.
The Form ITR-V should reach within 120 days from the date of e-filing
the return of income.
KEY NOTE
In a case where accounts are required to be audited under section
44AB of the Income Tax Act, 1961, it is mandatory to verify the
return of income electronically using a digital signature.
In case an assessee is required to furnish a report of audit under
Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E,
115JB or 115JC of the Income Tax Act, the assessee shall file such report
electronically at least one month before the due date of filing the return of
income.
(6) ITR- 6 Form
Form ITR – 6 can be used by a company, other than a
company claiming exemption under section 11 (charitable/religious
trust can claim exemption under section 11).
Not-eligible
to file ITR - 6
Form
ITR - 6 cannot be used by a company claiming exemption under section
11 (charitable/religious trust can claim exemption under section 11).
Annexure-less ITR – 6 Form
No
document (including TDS certificate) should be attached to this ITR Form.
Manner of filing Form ITR-6
ITR – 6 Form can be filed with the
Income-tax Department electronically on the e-filing web portal of Income-tax
Department (www.incometaxindiaefiling.gov.in)
and verified by using a digital signature only.
In
case the Company is required to furnish a report of audit under Sections 10AA,
44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC
of the Income Tax Act, the Company shall file such report electronically at
least one month before the due date of filing the return of income.
(7) ITR- 7 Form
(A) Form
ITR-7 can be used by persons who are required to furnish return under section
139(4A) or, section 139(4B) or 139(4C) or section 139(4D) only.
139(4A) or, section 139(4B) or 139(4C) or section 139(4D) only.
Eligible to File ITR 7
Form
ITR – 7 can be used by persons including companies who are required to
furnish return under section 139(4A) or section 139(4B)
or section 139(4C) or section 139(4D) or section 139(4D) only.
(1) EARN FROM A CHARITABLE /RELIGIOUS TRUST
Return
under section 139(4A) is required to be filed by every person in receipt of
income derived from property held under trust or other legal obligation wholly
for charitable or religious purposes or in part only for such purposes.
(2)
UNDER SECTION 139 (4B)- IF THEY EARN FROM A POLITICAL PARTY
Return
under section 139(4B) is required to be filed by a political party if the total
income without giving effect to the provisions of section 139A exceeds the
maximum amount which is not chargeable to income-tax.
(3)
EARN FROM SCIENTIFIC RESEARCH INSTITUTIONS
Return
under section 139(4C) is required to be filed by every
(i)
scientific research association ;
(ii)
news agency ;
(iii) association
or institution referred to in section 10(23A);
(iv) institution
referred to in section 10(23B);
(v)
fund or institution or university or
other educational institution or any hospital or other medical institution.
Return of income [With effect from 2016-17]
By virtue of section 139(4C) every educational institution referred to in section 10(23C)(iiiab) or section 10(23C)(iiiad) or section 10(23C)(vi) whose total income in respect of which such institution is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form.
Mandatorily required to furnish a return of income [Section 139(4C)]
With effect from assessment year 2018-19, any person as referred to in section 10(23AAA) shall be mandatorily required to furnish a return of income.
Return
under section 139(4D) is required to be filed by every university, college or other
institution, which is not required to furnish return of income or loss under
any other provision of this section.
(B) The category of persons whose income is unconditionally exempt under various clauses of section 10, and who are not mandatorily required to furnish their return of income under the provisions of section 139, may use this form for filing return. A list of such persons is given below:-
|
S. No.
|
Category
of persons
|
Exempt
under Section
|
|
(i)
|
Local authority
|
10(20)
|
|
(ii)
|
Regimental Fund or Non-public Fund
established by the Armed forces of the Union
|
10(23AA)
|
|
(iii)
|
Fund, by whatever name called, set
up by
the Life lnsurance Corporation (LIC) of India
on or after 1st August,
1996, or by any other insurer
|
10(23AAB)
|
|
(iv)
|
Authority (whether known as the
Khadi
and Village Industries Board or by any other name)
|
10(23BB)
|
|
(v)
|
Body or Authority
|
10(23BBA)
|
|
(vi)
|
SAARC Fund for Regional Projects
set up by Colombo Declaration
|
10(23BBC)
|
|
(vii)
|
lnsurance Regulatory and
Development Authority (IRDA)
|
10(23BBE)
|
|
(viii)
|
Central Electricity Regulatory
Commission
|
10(23BBG)
|
|
(ix)
|
Prasar Bharati
|
10(23BBH)
|
|
(x)
|
Prime Minister’s National Relief
Fund
|
10(23C)(i)
|
|
(xi)
|
Prime Minister’s Fund (Promotion
of Folk Art)
|
10(23C)(ii)
|
|
(xii)
|
Prime Minister’s Aid to Students
Fund
|
10(23C)(iii)
|
|
(xiii)
|
National Foundation for Communal
Harmony
|
10(23C)(iiia)
|
|
(xiv)
|
Swachh Bharat Kosh
|
10(23C)(iiiaa)
|
|
(xv)
|
Clean Ganga Fund
|
10(23C)(iiiaaa)
|
|
(xvi)
|
Provident fund to which the
Provident Funds Act, 1925 applies
|
10(25)(i)
|
|
(xvii)
|
Recognized Provident Fund
|
10(25)(ii)
|
|
(xviii)
|
Approved Superannuation Funds
|
10(25)(iii)
|
|
(xix)
|
Approved Gratuity Fund
|
10(25)(iv)
|
|
(xx)
|
Other funds referred to in
sub-clause (v) of section 10(25)
|
10(25)(v)
|
|
(xxi)
|
Employees’ State Insurance Fund
|
10(25A)
|
|
(xxii)
|
Agricultural Produce Marketing
Committee
|
10(26AAB)
|
|
(xxiii)
|
Corporation, body, institution or
association
established for promoting interests of members
of Scheduled
Castes or ScheduIed Tribes or
backward classes
|
10(26B)
|
|
(xxiv)
|
Corporation established for
promoting interests
of members of a minority community
|
10(26BB)
|
|
(xxv)
|
Corporation established for
welfare and
economic upliftment of ex-servicemen
|
10(26BBB)
|
|
(xxvi)
|
New Pension System (NPS) Trust
|
10(44)
|
Form
ITR-7 is to be furnished electronically in the following modes
This
Return Form can be filed with the Income Tax Department in any of the following
ways:—
(i)
by furnishing the return electrically
under digital signature,
(ii)
by transmitting the data in the return
electronically under electronic verification code,
(iii)
by transmitting the data in the return electronically and thereafter submitting
the verification of the return in Return Form ITR-V.
Annexure-less ITR - 7 Form
No
document (including TDS certificate) should be attached to this ITR Form.
Compulsory e-filing of return of
income (without digital signature) [Proviso to Rule 12(2)]
The assessee who is required to
furnish a report of audit specified under sections 10(23C)(iv), 10(23C)(v),
10(23C)(vi), 10(23C)(via) and 12A(i)(b) or to give a notice under section
11(2)(a) is liable to file the return of income (alongwith audit report)
electronically.
Filing
of return by unregistered organisations
Charitable/Religious
Organisations, which are not registered under section 11 or under section
10(23C) of the Income Tax Act and do not enjoy any exemption on their income. Hence,
they are liable to file the return if the voluntary contribution received by
them or their income exceeds the maximum amount which is not chargeable to
income-tax in any previous year. Such organisations should file their
income-tax return in ITR-7.
Not-eligible
to file ITR - 7
Form
ITR – 7 cannot be used by a person who is not required to furnish return
under section 139(4A) or section 139(4B) or section
139(4C) or section 139(4D) (i.e., trusts, political party,
institutions, colleges).
ITR Form
NRIs need to furnish income tax return
A non-resident or a person not
ordinarily resident in India, earning income in the form of salary and
interest, is required to furnish return of income in ITR-2 form.
ITR Form
NRIs need to furnish income tax return
A
non-resident Indian (NRI) is required to furnish his return of income if the
aforesaid income exceeds the maximum exemption limit, i.e., Rs. 2,50,000 (for
Financial year 2020-21). This limit shall be considered without giving effect
to the provisions of section 10(38), 10A, 10B, 10BA or deduction available
under sections 80C to 80U. He can furnish his return of income in Form ITR -2
or ITR-3, depending on the nature of income. A NRI cannot file return of income
in Form ITR-1. ITR-1
form can only be used by an individual who is resident in India.
If
a NRI has income from business or profession then return is required to be
filed in Form ITR-3. In all other cases, ITR-2 can be used to file return of
income. In case the NRI has opted for presumptive taxation scheme, return has
to be filed in ITR-3 only, up to Assessment Year 2018-19, an option to file
return in ITR-4 was available to NRI who opted for presumptive taxation scheme.
However, same is withdrawn w.e.f, Assessment Year 2019-20.
The Central Board of
Direct Taxes (CBDT) has also exempted certain
class of NRIs from the mandatory requirement of furnishing of ITRs. In case of
a NRI, furnishing of ITR isn’t required if such NRI has any of the following incomes
on which TDS has been deducted and prescribed conditions have been
fulfilled:
(i) Investment
income derived from a foreign exchange asset
(ii) Long-term
capital gains form such foreign exchange asset
(iii) Income from
participation in any game or sport in India (other than the winnings from
lotteries, etc., as referred to under Section 115BB)
(iv) Advertisement
Income
(v) Income from
contribution of articles relating to any game or sport in India in any
newspapers, journals or magazines
(vi)
Any income
received or receivable for performance as an entertainer in India
(vii)
Income by way
of Interest on bonds as referred to in Section 115AC
(viii)
Income by way
of dividend, other than those as referred to in Section 115-O, on Global
Depository Receipts as referred to in Section 115AC.
(ix)
Income by way
of dividend, other than those as referred to in Section 115-O
(x) Interest
received from Government or Indian concern on monies borrowed or debt incurred
by Government or Indian concern in foreign currency
(xi)
Interest
received from an Infrastructure Debt Fund as referred to in Section 10(47)
(xii) Interest on
borrowings in foreign currency or monies borrowed by way of Rupee Denominated
Bonds as referred to in Section 194LC
(xiii) Interest on
investment made by FII or QFI in Rupee Denominated Bond of an Indian company
or Government security as referred to in Section 194LD
(xiv) Distributed
income being interest received or receivable from a Special Purpose Vehicle as
referred to in Section 194LBA(2)
(xv) Income from
units, purchased in foreign currency, of a mutual fund, as specified in Section
10(23D)
(xvi) Income, other
than business income, distributed by an investment fund located in
International Financial Services Centre (IFSC) located in India.
Who can verify and sign the income tax return [Section 140]
Every income tax return filed must be mandatorily signed by the appropriate person (authorised by tax law) confirming that the information given in the return are correct and in accordance with the income tax law and also confirming that he/she is the competent person to make and verify the return.
S. No.
|
Status
|
Who can verify and sign
|
1.
|
Individual
|
The individual filing his Income Tax Return has to sign the return. In case the individual is mentally incapable, then the return may be signed by his Guardian or by any other person competent to act on his behalf. In case the individual is absent from India or because of any other reason he is not able to sign and verify his return of income, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such a case, a certified copy of the Power of Attorney must accompany the return.
|
2.
|
Hindu Undivided Family
|
By the Karta or where he is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family.
|
3.
|
Indian Company
|
Managing Director
Any director if such managing director is not able to verify and sign the return for any unavoidable reason or if there is no managing director
|
4.
|
Foreign company
|
The return may be signed and verified by a person holding a valid Power of Attorney from the Company, which should be attached to the return.
|
5.
|
Company is being wound up (whether by the court order or otherwise) or where any person has been appointed as receiver of assets of the company
|
Liquidator of the company or the person who has been appointed the receiver of assets of the company (Section 178(1))
|
6.
|
Company whose management is taken over by Central/State Government under any law
|
Principal officer
|
7.
|
Company whose application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Insolvency and Bankruptcy Code, 2016
|
Insolvency professional (as defined under Insolvency and Bankruptcy Code, 2016) appointed by such Adjudicating Authority
|
8.
|
Firm:
|
Managing Partner, or where there is no Managing Partner or due to some unavoidable reasons, he is not able to sign and verify the return, by any partner thereof not being a minor.
|
9.
|
Limited Liability Partnership (LLP)
|
Designated partner
Any partner if such designated partner is unable to sign and verify the return for any unavoidable reason or if there is no designated partner
|
10.
|
Local Authority :
|
By the Principal Officer.
|
11.
|
Political party
|
Chief executive officer of such party irrespective of the nomenclature of his designation
|
12.
|
Association of Persons :
|
By any member of the Association or the Principal Officer thereof.
|
13.
|
Any Association
|
Any member of the association or the principal officer
|
14
|
Other person
|
That person himself/ herself
Any person competent to act on his behalf
|
Due date for
filing Income tax returns
S. No.
|
Assessment
year
|
Non Audit case
|
Businesses
(Requiring
Audit)
|
Businesses
(Requiring TP
Report)
(i.e. Assessee
who are required to furnish report under section 92E)
|
1.
|
2020-21
|
30th November 2020
|
31st October 2020
|
30th November 2020
|
2.
|
2019-20
|
31st August 2019
|
31st October 2019
|
30th November 2019
|
3.
|
2018-19
|
31st August 2018
|
31st October 2018
|
30th November 2018
|
4.
|
2017-18
|
5th August 2017
|
7th November 2017
|
30th November 2017
|
5.
|
2016-17
|
5th August 2016
30th September, 2016, in case of Income-tax assessees in the state of Jammu & Kashmir |
17th October 2016
31st December, 2016 for all categories of taxpayers in the State of Jammu & Kashmir. |
30th November 2016
|
6.
|
2015-16
|
31st August 2015
|
31st October 2015
|
30th November 2015
|
How many times can revise the return
If a
person after furnishing the return finds any mistake, omission or any wrong
statement, then return should be revised within prescribed time limit.
The income tax
return can only be revised if
the same has been filed by the due date. A belated income tax return (filed after the due date) cannot be revised. There is no restriction as to
the number of times an income tax
return can be revised.
A return can be revised before the expiry of one year
from the end of the assessment year or before assessment by the department is
completed; whichever event takes place earlier.
If original return has filed in
paper format or manually, then technically it cannot be revised by online mode
or electronically. Revised return can be filed online under section
139(5).
Consequences of delay/ non filing the return of income/Loss
(other than house property loss)
Following are the consequences of
delay/ non filing the return of
income/ Loss (other than house property loss):
(1) Carry Forward of
Losses are not allowed
Not
able to carry forward losses if the return of income is not filed within due
date. However, the loss under the head “Income from house property” can be
carried forward even if the return of income/loss of the year in which loss is
incurred is not furnished on or before the due date of furnishing the return,
as prescribed under section 139(1).
(2) Fees for delay in filing of return [Section
234F]
With effect
from assessment year 2018-19, if a person assessee who is required to furnish
return of income under section 139 failed to furnish return of income within
due date as prescribed under section 139(1) then as per section 234F, he will
be required to pay fee of:-
S. No.
|
Date of
filing
|
Fees
leviable
|
(a)
|
If the return is furnished after
the due date of filing but on or before the 31st day of December.
|
Rs. 5,000
|
(b)
|
In any other case
|
Rs. 10,000
|
KEY NOTE : If the total income of
the person does not exceed Rs. 5,00,000, the fee payable under this section
shall not exceed Rs.1,000.
|
||
(3) Interest for default in furnishing
return of Income [Section 234A]
Where the return of income for any Assessment year is
furnished after the due date specified in section 139(1) or is not furnished
the assessee shall be liable to pay simple Interest @ 1% for every month or
part of a month. This interest is calculated from the due date to the date of
actually filing the income tax
return.
(4)
Best Judgment Assessment [Section 144]
The
Assessing Officer is under an obligation to make an assessment to the best of
his judgment. If any person fails to make the return required under section
139(1) and has not made a return or a revised return under section 139(4) or
section 139(5) of that section, the Assessing Officer has gathered, shall,
after giving the assessee an opportunity of being heard, make the assessment of
the total income or loss to the best of his judgment and determine the sum
payable by the assessee on the basis of such assessment.
(5) Claim of Refund of taxes
In case your tax payable is less
than the TDS already deducted, you can claim the refund of such excess TDS by
filing your Income Tax Return.
You
must file your Income Tax Return to claim the refund of TDS.
Further, you are eligible for Interest @0.5% per
month or part of the month on refund amount as per Section 244A.
(6) Applicability of sections 11 and 12 – only
if it furnishes return of income within the time
Section
12A provides that the charitable trust must file its return of income for the
relevant previous year where its total income (before giving effect to sections
11 and 12) exceeds maximum amount not chargeable to income-tax in any previous
year.
In
order to provide greater clarity, clause (ba) in section 12A(1) inserted by the
Finance Act, 2017 with effect from 01.04.2018 (applicable from assessment year
2018-19) to the effect that such person files the income-tax return within the
time allowed under section 139(4A).
(7) Penalty for under-reporting and misreporting of income
[Section 270A]
The Assessing Officer or the Commissioner (Appeals) or the
Principal Commissioner or Commissioner may, during the course of any
proceedings under this Act, direct that any person who has under-reported his
income shall be liable to pay a penalty in addition to tax, if any, on the
under-reported income.
SECTION
270(2)(b)
(2) A person
shall be considered to have under-reported his income, if—
(b) the
income assessed is greater than the maximum amount not chargeable to tax, where
no return of income has been furnished or where return has been
furnished for the first time under section 148;
SECTION
270(3)(b)
(3) The amount
of under-reported income shall be,—
(b) in a
case where no return of income has been furnished or where return has
been furnished for the first time under section 148,—
Quantum of penalty that can be
levied under section 270A
If income is under-reported due to
misreporting of income, then penalty shall be levied at 200% of tax payable on
such under-reported income. However, if income is under-reported due to any
other circumstances, then penalty shall be 50% of tax payable on under-reported
income.
IN CASE OF UNDER REPORTING
When the “under-reporting”
is not because of misreporting, the penalty would be 50% of tax
payable on the under-reported income.
|
50% of the amount of tax payable on the
under reported income
|
IN CASE OF MISREPORTING OF
INCOME
When the “under-reporting”
is because of misreporting, the penalty would be 200% of the tax
payable on the under-reported income.
|
200% of the amount of tax
payable on under reported income
|
Penalty
for default in filing return of Income
v
If
a person fails to furnish the return of income which he is required to furnish
under section 139(4A) or 139(4C) or to furnish it within the time allowed, he
shall pay, by way of penalty under section 272 A(2)(e), a sum of 100 for every
day during which the failure continues.
v The penalty order is passed by
the Additional Commissioner of Income Tax or Joint Commissioner of Income Tax,
after giving an opportunity to the assessee.
v In case of genuine reasons for
delay, penalty may not be imposed in view of section 273B.
(8) Prosecution for failure to furnish Returns of
Income
If a
person wilfully fails to furnish in due time the return of income which he is
required to furnish under section 139(1) or
by notice given under section 142(1)(i) or section 148 or section 153A,
he shall be punishable,—
Punishment
(a) Where tax
sought to be evaded exceeds Rs. 25,00,000
Ø With rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine
(b) in other
cases
Ø With rigorous imprisonment for a term which shall not be less than 3 months but
which may extend 2 years and with fine
(9) Deduction
under section 10A are not available [Proviso to Section 10A(1A)]
The Proviso to section 10A(1A) provides that “no deduction under this section shall be allowed to an
assessee who does not furnish
a return of his
income on or
before the due date specified under Section 139(1)”.
(10) Deduction
under section 10B are not available [Fourth Proviso to Section 10B]
The Fourth Proviso
to section 10B
provides that “no deduction under this section shall be allowed to an
assessee who does not furnish a return of his income on or before
the due date specified under Section 139(1)”.
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