ITR filing season is on. From this assessment year, there is a penalty under section 234F of the income tax act. If you are wondering about which ITR forms to use then read on.
The income tax return filing doesn’t sound sweet, especially when the time to file the income tax return has approached. Thankfully, the Income Tax Department has given us the e-filing facility for all categories of Income Tax Returns (ITRs).
Payment of tax is just not enough as we need to file our returns as well. And, this return is filed by every individual, companies, entities who readily pay their taxes on time every financial year. It is a must to file ITR and, hence, you should avoid filing it late as you may end up paying penalty charges under section 234F of the Income-Tax Act, 1961. A penalty of Rs 5000 will be applicable for a return filed after 31st July but before 31st December of the relevant assessment year. In case of ITR is filed after 31st December, a penalty of Rs 10,000 will be levied.
You can either file it through the online mode by visiting the income tax website or else, you can download the form and fill it in offline mode.
The below-mentioned details of the ITRs are applicable for the assessment year 2018-19 or financial year 2017-18. Here is how an individual can file one’s ITR as per the mentioned category:
Filing of ITR form 1 ( Sahaj form)
This form is applicable for resident individuals only and it needs to be filed by individuals whose total income for the assessment year 2018-19 includes the following
1) Income from Salary
2) Income from One House Property (excluding cases where a loss is brought forward from previous years)
3) Income from Other Sources (excluding winning from lottery and income from race horses, etc.)
4) However, this form cannot be used by individuals whose total income for the assessment year 2018-19 exceeds Rs 50 lakh.
Further, it is to be noted that where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, then in such cases this return form can be used, but only if the income which is being clubbed falls into the mentioned income categories thereon.
Filing of ITR form 2
This ITR form is to be used by individuals or HUF’s (Hindu Undivided Family) who are not eligible to file Sahaj ITR-1, i.e residents not ordinarily residents and non-residents.
Individuals whose income is chargeable to income tax under the head – Profits or gains of business or profession, Income from presumptive business and is in the nature of interest, bonus, salary, commission or remuneration, due to, or received by them from a partnership firm.
Moreover, Income or loss from more than one house property, agricultural income exceeding Rs. 5000 and total income exceeding Rs. 50 lakhs, dividends income exceeding Rs. 10 lakh taxable under section 115BBDA, unexplained credit or unexplained investments taxable at 60% under sections 68, 69, 69A etc shall be reported under ITR 2.
Filing of ITR form 3
This ITR form is to be used by individuals or HUF’s (Hindu Undivided Family) having income from profits and gains from business and profession.
For the Assessment Year 2018-19, an individual or a HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only. Last year the partners were required to file a return in ITR 2.
The return can be filed with the I-T Department in any of the following ways:
1) By providing the return electronically under digital signature
2) By transmitting the data in the return electronically under electronic verification code
3)By transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V
Filing of ITR form 4 (SUGAM)
This ITR form can be filed by either individuals or HUFs or any Partnership Firm whose total income for the assessment year 2018-19 includes
1)Salary or Pension.
2)Business income where such income is computed in accordance with special provisions referred to in sections 44AD and 44AE (presumptive taxation)of the act for computation of business income.
3)Income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA.
4)Income from One House Property (excluding cases where a loss is brought forward from previous years).
5)Income from Other Sources (excluding winning from lottery and income from race horses).
Filing of ITR form 5
This ITR form can be used by a person being a firm, LLPs, AOP, BOI, artificial juridical person, cooperative society, registered societies and local authority, etc. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form.
Filing of ITR form 6
This ITR form can be used by a company, other than a company claiming exemption under section 11 of I-T Act. Taxpayers are also advised to match the taxes deducted or collected or paid by or on behalf of them with their Tax Credit Statement (Form 26AS).
Filing of ITR form 7
This ITR form can be used by persons, companies who are required to declare return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).