ITR

Apply For Services

WHAT IS ITR?

ITR stands for Income Tax Return, which is a form that individuals, businesses, or other entities file with the Income Tax Department of India to declare their income, expenses, and tax payments. Filing an ITR is mandatory for certain taxpayers based on income thresholds and other conditions. It helps the government assess an individual's or entity's tax liability for the financial year.

TYPES OF ITR FORMS

There are several ITR forms that are applicable based on the source and nature of income. The most common forms are:

·        ITR-1 (Sahaj):

Applicable for resident individuals with income up to ₹50 lakh from salary, pension, one house property, and other sources (excluding lottery winnings and income from racehorses).

·        ITR-2:

For individuals and Hindu Undivided Families (HUFs) not having income from business or profession but having income from capital gains, more than one house property, or foreign assets.

·        ITR-3:

Applicable for individuals and HUFs having income from a proprietary business or profession.

·        ITR-4 (Sugam):

For individuals, HUFs, and firms (other than LLP) having a total income up to ₹50 lakh and income from a business or profession under the presumptive taxation scheme.

·        ITR-5:

For firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), etc.

·        ITR-6:

For companies, except those claiming exemption under Section 11 (income from property held for charitable or religious purposes).

·        ITR-7:

For persons (including companies) required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) (for charitable trusts, political parties, research institutions, etc.).

BENEFITS OF FILING ITR

·        Legal Requirement:

It is mandatory to file ITR if your income exceeds the specified limit.

·        Claim Refunds:

If excess tax has been deducted, filing ITR allows you to claim a refund.

·        Proof of Income:

ITR serves as proof of income for loan applications, visa processing, and other legal requirements.

·        Carry Forward Losses:

You can carry forward losses to offset future income if you file your returns on time.

·        Avoid Penalties:

Timely filing of ITR helps avoid penalties under the Income Tax Act.

·        Eligibility for Loans and Credit:

Filing ITR increases your chances of being approved for loans and credit cards as it serves as proof of income.

·        Compliance:

It helps you stay compliant with tax laws and avoid scrutiny from tax authorities.