Return of Income & ITR Forms

Return of Income

Sec 139 (1) of the Income Tax Act, 1961

This Section provides the compulsory return filing, on or before the due date, for the following category of person:-

♣ Every Company OR a partnership Firm (PF) OR a Limited Liability Partnership Firm (LLP).

As per 3^rd Proviso, they have to mandatory file their ITRs even in case of Loss.

♣  Any person other than the person mentioned under point No. 1, if their Gross total Income* for the year for which return is filing, OR the gross total income* of any other person in respect of which he is assessable for the year for which return is filing, is more than the maximum amount not chargeable to Income tax .

As per 6^th proviso, Gross total Income should be considered before giving the effect of deductions made u/s 10(38) /10A /10B /10BA /54 /54B /54D /54EC /54F /54G /54GA /54GB.

* Gross Total Income is the income before considering the effect of deductions available under chapter VI-A.

 Maximum Amount not chargeable to Income Tax

Person’s Category	Amount (Rs.)
Resident Individual below 60 Years of age	2,50,000
Resident Individual between 60 and 80 years of age	3,00,000
Resident Individual above 80 Years of age	5,00,000
For all Non Resident Individual	2,50,000
HUF, AOP, BOI & Any other Artificial Juridical Person	2,50,000
Co-Operative Society	10,000

• Any resident, who as a beneficial owner or otherwise, holds any asset located outside India including financial interest in any entity OR has signing authority for any account located outside India.
• Any resident, who is a beneficiary of any asset located outside India including financial interest in any entity.
• Any person (other than company/PF/LLP) who 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. (w.e.f. 1.04.2020)
• Any person (other than company/PF/LLP) who has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country. (w.e.f. 1.04.2020)
• Any person (other than company/PF/LLP) who has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity. (w.e.f. 1.04.2020)

Definition of “Person” as per Section 2(31) of Income Tax Act, 1961

Person includes :

1. an Individual;

2. a Hindu Undivided Family (HUF) ;

3. a Company;

4. a Firm

5. an association of persons or a body of individuals, whether incorporated or not;

6. a local authority; and

7. every artificial juridical person not falling within any of the preceding sub-clauses.

8. Association of Persons or Body of Individuals or a Local authority or Artificial Juridical Persons shall be deemed to be a person whether or not, such persons are formed or established or incorporated with the object of deriving profits or gains or income.

Due Dates prescribed:-

Person’s Category	Due Dates
1) Company, 2) A person whose accounts are required to be audited under this law or under any other law, 3) A partner of a firm whose accounts are required to be audited under this law or under any other law	30th oct of the Assessment Year
A person who is required to furnish a report referred to in section 92E	30th Nov of the Assessment Year
In other cases	31st July of the Assessment Year

Sec 139 (2) of the Income Tax Act, 1961

Omitted  w.e.f. 1-4-1989

Sec 139 (3) of the Income Tax Act, 1961

This section provides that if there is a loss arising under head “Capital Gains” or under head “profit and gains of Business and Profession”, filing of return would be mandatory if this loss is to be to carry forward for the future years. To carry forward the loss, return should be filed within the due date.

This section doesn’t talk about the loss from “House Property”. So in this case, loss may be carry forward even when return is filed after the due dates.

Sec 139 (4) of the Income Tax Act, 1961

Sec 139(4) states that any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Sec 139 (4A) of the Income Tax Act, 1961

This section states that, a person in receipt of income derived from property held under a trust for charitable or religious purposes is required to submit return of income if its income (without giving exemption under section 11 or 12) exceeds exemption Iimit.

Sec 139 (4B) of the Income Tax Act, 1961

This section states that, a chief executive officer of every political party is required to submit income-tax return if income of the political party (without giving exemption under section 13A) exceeds exemption limit.

Sec 139 (4C) of the Income Tax Act, 1961

This section states that if total income (without claiming any exemption given below) of the assessee (who is qualified to claim exemption under the following sections) exceeds the exemption limit, required to submit the return.

(Section 10(21), 10(22B), 10(23A), 10(23AAA), 10(23B), 10(23C), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(23F), 10(24), 10(29A), 10(46), 10(47)).

Sec 139 (4D) of the Income Tax Act, 1961

This section states that any university/college/other institution referred to in section 35(1)(ii)/ (iii) is required to submit return of income (return has to be submitted whether there is income or loss. Such return has to be submitted even if it is not required by any other provision).

Sec 139 (4E) of the Income Tax Act, 1961

This section states the filing of returns by Trust.

Sec 139 (4F) of the Income Tax Act, 1961

This section states the filing of returns by Investment Fund referred in section 115UB.

Sec 139 (5) of the Income Tax Act, 1961

This section states that If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Sec 139 (9) of the Income Tax Act, 1961

This section states that where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation. The Assessing officer may, in his discretion allow further days to rectify the defect. If the defect is not rectified within the time allowed, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return.

Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.

ITR Forms

ITR Forms	Description
ITR-1	For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand. (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR-2	For Individuals and HUFs not having income from profits and gains of business or profession. * An Individual who is either Director in a company or has invested in Unlisted Equity Shares and not having any income from business and profession has covered under this Form.
ITR-3	For individuals and HUFs having income from profits and gains of business or profession.
ITR-4	For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE (i.,e Presumptive Income) (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR-5	For persons other than:- (i) Individual, (ii) HUF, (iii) Company and (iv) Person filing Form ITR-7 * LLP has covered under this Form.
ITR-6	For Companies other than companies claiming exemption under section 11. * Section 11 related to “Income from property held for charitable or religious purposes”.
ITR-7	For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D). * 139(4A) related to Income from property held for charitable or religious purposes. * 139(4B) related to income of Political party. * 139(4C) related to Income of person claiming deduction under section 10. * 139(4D) related to Income of every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35.

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