An Income Tax Return (ITR) is a prescribed statement of income, deductions, taxes paid, and other particulars that a taxpayer furnishes to the Income-tax Department for a financial year.
What is an Income Tax Return?
An Income Tax Return is a legal document through which a
person:
§
Reports total income earned during
the year.
§
Claims deductions and exemptions.
§
Computes tax liability.
§
Claims refund of excess tax paid.
§
Discloses specified financial
information required by law.
Purpose of Filing ITR
The main purposes are:
§
Determination of taxable income.
§
Assessment and collection of tax.
§
Claiming tax refunds.
§
Carry forward of losses.
§
Compliance with tax laws.
§
Maintaining financial records for
loans, visas, tenders, etc.
|
Clause |
Who must file? |
Even with Nil Income? |
|
(i) |
Company |
Yes |
|
(ii) |
Firm / LLP |
Yes |
|
(iii) |
Individual/HUF etc. above
exemption limit |
No |
|
(iv) |
Specified charitable entity |
Yes (subject to conditions) |
|
(v) |
Educational institution |
Yes |
|
(vi) |
Business Trust |
Yes |
|
(vii) |
Investment Fund |
Yes |
|
(viii) |
Person wanting carry-forward of
losses |
Yes (for loss claim) |
|
(ix) |
Resident with foreign
assets/accounts |
Yes |
|
(x) |
Other prescribed persons |
As prescribed |
Due dates for filing of return of Income [Section 263(1)(c)] Explanation 2 to Section 139(1) of the Income Tax Act, 2025]
|
S. No. |
Person |
Conditions |
Due date
[succeeding the relevant tax year] |
|
A |
B |
C |
D |
|
1. |
Assessee,
including the partners of the firm or the spouse of such partner (if section
10 applies to such spouse). [Section
10 – Portuguese Civil Code] |
Where the provisions
of section 172
apply [Requiring TP Report] |
30th
November. |
|
2. |
(i)
Company; (ii) Assessee (other than a company) whose accounts are required to be audited under this Act or
under any other law in force; (iii)
Partner of a firm whose accounts are required to be audited under this Act or
under any other law in force; or the spouse of such partner (if section 10
applies to such spouse). |
Where the
provisions of section 172 do not apply |
31st
October. |
|
3. |
(i)
Assessee having income from profits and gains of business or profession whose
accounts are not required to be
audited under this Act or under any other law in force; (ii)
Partner of a firm whose accounts are not required to be audited under this
Act or under any other law in force or the spouse of such partner (if section
10 applies to such spouse). |
As above |
31st
August. |
|
4. |
Any other
assessee |
- |
31st July. |
Furnishing return of income by persons other
than a company or firm referred to in section 263(1)(a)(x) is mandatory [Rule
163 - Erstwhile Rule 112AB of the Income Tax Rules, 1962]
Conditions for furnishing return of income by persons other than a company or firm referred to in section 263(1)(a)(x). –
(1) The conditions required to be fulfilled in
a tax year for the purposes of furnishing return of income in respect of a
person other than a company or firm referred to in section 263(1)(a)(x), shall
be the following :-
(a) if he has deposited an amount or aggregate of the amounts
exceeding one crore rupees in one or more current accounts maintained with a
banking company or a co-operative bank; or
(b) if he has incurred expenditure of an amount or aggregate of
the amounts exceeding ₹ 2,00,000 for himself or any other person for travel to
a foreign country; or
(c) if he has incurred expenditure of an amount or aggregate of
the amounts exceeding ₹ 1,00,000
towards consumption of electricity; or
(d) if his total sales, turnover or gross receipts, as the case
may be, in the business exceeds Rs. 60,00,000; or
(e) if his total gross receipts in profession exceeds Rs.
10,00,000; or
(f) if the aggregate of TDS and TCS, in the case of such person
is ₹ 25,000 or more, and in the case of individual resident of the age of 60
years or more, the amount shall be taken as ₹ 50,000 or more; or
(g) if he has deposited in his one or more savings bank account,
in aggregate, Rs. 50,00,000 or more.
(2) For the purposes of this rule, the
expression ―travel to a foreign country‖ does not include travel to the
neighbouring countries or to such places of pilgrimage as the Board may specify
in this behalf, by notification.
Form and manner of filing [Section 263(2)]
|
Income-tax
Returns Form (ITR) |
||
|
S.
No. |
ITR
Form |
Description |
|
1 |
ITR
- 1 |
Also
known as SAHAJ For
resident individuals with income within Rs. 50,00,000 from salary, 2 house
property, section 198 (Erstwhile section - 112A) capital gains up to Rs.
1,25,000 and other sources (excluding business/profession). |
|
2. |
ITR
- 2 |
For
Individuals and HUFs not having income from profits and gains of business or
profession |
|
3 |
ITR
- 3 |
For
individuals and HUFs with income from business or profession, including those
opting out of presumptive taxation. |
|
4 |
ITR
- 4 |
SUGAM
- For individuals, HUFs, and firms (other than LLPs) being a resident having
total income upto Rs. 50,00,000 and having income from business and
profession which is computed u/s section 58 – Erstwhile sections 44AD, 44ADA
or 44AE of the ITA, 1961. [Not for an individual who is either Director in a
company or has invested in unlisted equity shares or if income-tax is deferred
on ESOP or has agricultural income more than Rs. 5000] |
|
5 |
ITR - 5 |
For
persons other than, - (i) individual, (ii) HUF, (iii) company and (iv) person
filing Form ITR-7 In
other words, this form can be used by a Person being a: (i)
Firm (ii)
Limited
Liability Partnership (LLP) (iii)
Association
of Persons (AOP) (iv)
Body
of Individuals (BOI) (v)
Artificial
Juridical Person (AJP) referred to in clause (vii) of Section 2(31) (vi)
Local
Authority referred to in clause (vi) of Section 2(31) (vii)
Representative
Assessee referred to in Section 160(1)(iii) or (iv) (viii)
Cooperative
Society (ix)
Society
registered under Societies Registration Act, 1860 or under any other law of
any State (x)
Trust
other than Trusts eligible to file Form ITR-7 (xi)
Estate
of Deceased Person (xii)
Estate
of an Insolvent (xiii)
Business
Trust referred to in Section 139(4E) (xiv)
Investments
Fund referred to in Section 139(4F) Note:
However, a person who is required to file the Return of Income under sections
139(4A) or 139(4B) or 139(4D) shall not use this form. |
|
6 |
ITR
- 6 |
For
Companies other than companies claiming exemption under section 11 |
|
7 |
ITR
- 7 |
Non-profit
organization (charitable Trusts, universities, Hospitals), political parties
and other exempted institutions |
|
8 |
ITR-A |
Modified
Return in the case of Business Reorganisation - Successor entity must file a
modified ITR using Form ITR-A within 6 months from the end of the month in
which the reorganization order was passed. [Section 170A] |
|
9 |
ITR-B |
The
taxpayer must file Form ITR-B when a search under section 247 has been
initiated or a requisition has been made under section 248 of the Income Tax
Act, 2025. The form aims to address undisclosed income during a search or
requisition made. |
|
10. |
ITR-U |
ITR-U
or Updated Income Tax Return is the form that allows you to rectify errors or
omissions and update your previous ITR. It can be filed at any time within 48
months from the end of the relevant assessment year. [Section 263(6) –
Erstwhile Section 139(8A) of the ITA, 1961] |
|
11. |
ITR
V |
It
is the acknowledgement of filing the return of income. |
The Central Government may, by notification, exempt any
class or classes of persons, from the obligation to file a return of income
under this section, subject to the conditions specified therein.
§ A
Government notification is mandatory.
§ Exemption
is class-based, not person-specific.
§ Conditions
must be strictly fulfilled.
§ Exemption
from filing is not exemption from tax.
§ An exempt
person may still voluntarily file a return.
§ Section
263(3) operates as an exception to Section 263(1).
SECTION 263(1) = General rule requiring filing of return.
SECTION
263(3) = Exception enabling the Government to exempt specified
classes of persons through notification.
Example: Specified Senior Citizens Exempt from Filing ITR
A senior citizen was exempt from filing an ITR if all the
following conditions were satisfied:
- He/she
was a resident individual aged 75
years or more.
- Income
consisted only of:
- Pension
income; and
- Interest
income from the same bank in which the pension was received.
- The
bank was a specified bank.
- The
senior citizen furnished a prescribed declaration to the bank.
- The
bank deducted the appropriate tax after considering deductions and rebate.
Belated return [Section 263(4)]
-
within
9 months from the end of the relevant tax year, or
-
before
the completion of the assessment,
whichever
is earlier.
Example
- Tax
Year : 2026-27
- Due
date under Section 263(1): 31 July 2027 (assuming a non-audit individual)
- Return
not filed by 31 July 2027.
The assessee may still file a return under Section 263(4) up to:
- 31 December 2027 (9
months from the end of Tax year 2026-27), or
- the
date on which assessment is completed,
whichever is earlier.
Revised return [Section 263(5) ]
If any person, having furnished a return under section 263(1) or section 263(4), discovers any omission or any wrong statement therein, he may subject to the provisions of section 428(b), furnish a revised return at any time within 12 months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.
Fee for revising the return after 9 months but on or before 12 months [Section 428(b)]
(i)
Rs. 1,000, if the total income does
not exceed Rs. 5,00,000; and
(ii)
Rs. 5,000, in any other case
Updated return (ITR-U) [Section 263(6)]
An updated return can be filed within 48 months from the end of the financial year succeeding the relevant tax year.
Any person, whether or not he has furnished a return under Section 263(1), 263(4), or 263(5) or person who never filed any return, may furnish an updated return within the prescribed period.
Persons not eligible to furnish an Updated Return (ITR-U) [Section 263(6)(c) & (d)]
(i) If it is Return of Loss for the tax year.
(ii) Where the updated return decreases tax liability
Tax as per original return = ₹5,00,000.
Tax as per proposed updated return = ₹4,20,000.
ITR-U is not permissible.
(iii) Where the updated return results in a refund
§ no
refund was due earlier but refund becomes due; or
§ the
refund already due gets increased.
Example:
Original refund = ₹20,000.
Refund after proposed update = ₹50,000.
ITR-U cannot be filed.
(vi) Where information regarding undisclosed income has been received under any specified law and communicated to the taxpayer prior to the date of furnishing of updated return.
(vii) Information under international agreements
Where
information for the said year has been received under:
§
tax
treaties,
§
exchange
of information agreements,
§
multilateral
conventions,
and the same has been communicated to the taxpayer,
prior to the date of furnishing of updated return.
Example
Swiss bank
account information received through automatic exchange of information.
After
communication, ITR-U is not available.
(viii) If any Prosecution proceedings have been initiated before the date of furnishing updated return.
(ix) 36 months have expired from the end of the financial year succeeding the relevant tax year, and any notice to show-cause under section 281 has been issued in his case, except where an order has been passed under section 281(3) determining that it is not a fit case to issue notice under section 280.
In other words, after the specified 36-month period, if the Income-tax Department has already issued a show-cause notice for action relating to undisclosed income, the taxpayer cannot use ITR-U to regularise the income, unless the Department itself later decides that no such action is warranted."
(x) he is such person or belongs to such class of persons, as may be notified by the Board in this regard;
(xi) Persons subjected to search or requisition proceedings
A person cannot file ITR-U where:
- a
search has been initiated under Section 247; or
- books,
documents, or assets have been requisitioned under Section 248,
for:
- the
tax year in which the search/requisition occurred; and
- all
preceding tax years covered by the provision.
(xii) Persons subjected to survey proceedings
Where a survey has been conducted under Section 253 (other than the specified excluded sub-section), the assessee is not eligible to file ITR-U for the relevant and preceding years.
|
Timeline |
Additional amount to
be paid |
|
Within 12 months from
the end of the financial year succeeding the relevant tax year |
25% of aggregate of
tax and interest payable |
|
After 12 months but
before 24 months |
50% of aggregate of
tax and interest payable |
|
After 24 months but
before 36 months |
60% of aggregate of
tax and interest payable |
|
After 36 months but
before 48 months |
70% of aggregate of
tax and interest payable |
Defective return [Section 263(7)]
Grant a longer period if the assessee applies for an
extension.
Consequence of Non-Rectification [Section 263(1)(b)]
§ If the defect is not rectified within the permitted period, the return becomes invalid.
§
The law treats the case as if the
assesse had failed to furnish the return.
Return filed pursuant to an order under section 239(3)(b) - Treated as a return under section 263; all provisions of section 263 apply [Section 263(8)(a)]
Section 239(3)(b) specifically allows the tax authorities, via general or special orders, to condone delays and admit late applications or claims for exemptions, deductions, or refunds to prevent genuine hardship
Specified senior citizen covered by section 402(39) and TDS
deducted under section 393(1), S. No. 8(iii)
Consequences
[1] Best Judgment Assessment [Section 271 - Erstwhile section 144 of the ITA, 1961]
Where a person :
§ fails
to furnish a return under Section 263; or
§ fails
to comply with notices,
the Assessing Officer may make an assessment to the best of
his judgment.
[3] Fee for default in furnishing return of income [Section 428 - Erstwhile section 234F of the ITA, 1961]
(ii) a sum of ₹ 5,000, in any other
case.
(b) furnishes a return of income under section 263(5) beyond 9 months from the end of the relevant tax year, he shall be liable to pay by way of a fee, -
(ii) a sum of ₹ 5,000, in any other
case.
[4] Prosecution for
Failure to Furnish Returns of Income
§ Failure to furnish returns of income.
Sections 479 - Erstwhile section 276CC of the ITA, 1961]
§
Failure to furnish return of income
in search cases.
Sections 480 - Erstwhile section 276CCC of the ITA, 1961]
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