What is an Income Tax Return?

Income Tax Return is a form in which the taxpayer files information about the income earned and tax payable on such income to the Income Tax Department.

Which Income Tax Returns are applicable to an individual?

There are 7 forms notified by the department and ITR – 1,2,3,4 are applicable to an Individual depending on the sources and amount of income earned. This article talks in detail about Income Tax forms applicable to individuals.

What happens if incorrect Income Tax Return is selected?

The assessing officer may treat the return as a defective return and issue an intimation to file the return in correct form.

Income Tax Returns for Individuals

If this is not done in due time then the return will be treated as an invalid return and penalty under section 234A for delay in filing return will be leviable.

In certain cases taxpayer may face penalties for non-disclosure of certain details applicable but not available in the wrong return selected such as details of foreign asset, directorship details, etc. Thus it is of utmost importance to select correct Income Tax Return form and this article will guide you for the same

When is it mandatory to file the Income Tax Return?

◊ If the gross income is more than basic exemption limit as specified below–

Sr No Particulars ( for individual) Amount (Rs in lacs)
1 Below 60 years 2.5
2 Above 60 years up to 80 years 3
3 Above 80 years 5

Exception to above:

1. If cash deposited in one or more current accounts is > Rs

2. Have spent > Rs 2 lacs on foreign travel of self or any other person

3. Have spent > Rs 1 lakh on electricity

  • If one has earned income from or invested in foreign assets
  • If one wants to claim refund of TDS deducted on income
  • If one wants to apply for VISA/Loan

How to choose the correct Income Tax Return Form?

You can choose the correct Income Tax Return form with the help of the following table

Particulars ITR – 1 ITR – 2 ITR – 3 ITR – 4
Applicable to? Resident Individual or HUF Individual or HUF Individual or HUF or partner infirm Resident Individual or HUF or Partner- ship Firm
Income from Salary Yes Yes Yes Yes
Income from House Property Only 1 Yes Yes Only 1
Income from Business & Profession No No Yes Presumptive Income only
Income from Capital Gains No Yes Yes No
Income from other sources Yes Yes Yes Yes
Exempt Income Yes (only agriculture income <5000) Yes Yes Yes (only agriculture income <5000)
Lottery Income No Yes Yes No
Income from Foreign assets No Yes Yes No

Particulars ITR – 1 ITR – 2 ITR – 3 ITR – 4
Carry Forward Loss No Yes Yes No
Total Income <= Rs 50lacs > Rs 50lacs <= Rs

50lacs

Director in a company? No Yes Yes No
Held unlisted shares? No Yes Yes No
TDS u/s 194N No Yes Yes Yes
Received ESOPs from eligible start- ups No Yes Yes No

How to file the Income Tax Return?

There are two ways to file an Income Tax Return:

1. Online on the Income Tax Website www.incometax.gov.in

2. Offline using the utilities provided by the Income Tax Department under the Downloads section on the Income Tax website www.incometax.gov.in

What is the due date to file the Income Tax Return?

The following are the due dates to file an Income Tax Return without any late fees:

1. For Individuals to whom audit is not applicable – Due date is 31stDecember, 2021

2. For Individuals to whom audit is applicable – Due date is 15th February, 2022

Author Bio

Qualification: CA in Practice
Company: S K Bhageria & Associates
Location: Surat, Gujarat, India
Member Since: 04 Sep 2021 | Total Posts: 2
Chartered Accountant with seven years of experience including four years of post qualification experience in the field of Direct & Indirect Tax Reforms. Specializes in Direct & Indirect Tax Assessments and Audits. Has a zeal in sharing knowledge and connecting with people View Full Profile

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5 Comments

  1. GANDHI MOHAN BHARATI says:

    Really ? is it as simple as that ? A common man cannot understand the intricacies involves. So better go to a Tax professional OR you’ll definitely attract penalties. In the modern days of technology, having so many forms suits the IT personnel and NOT the common man. AND AGONY TO IT NOW-A-DAYS RULES ARE RULES AND NO PERSONAL HEARING AND ANY EXEMPTIONS.

    1. Yashika Nitin Bhageria says:

      Definitely sir taking help of a professional is the best way to file your returns. This article is a small way to help taxpayers understand the income tax forms in simple language.

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