Every taxpayer is required to declare incomes earned and taxes paid, to the Income Tax Department in prescribed income tax return forms called ITR Forms. Different ITR Forms are prescribed for AY 2016-17 based on different types of incomes and taxpayers. So every taxpayer has to first determine which ITR should be filed before he can start filing.
What are the different ITR Forms?
Although the Income Tax Department has prescribed 9 different ITR forms for AY 2016-17, taxpayers have to choose the one which is applicable to them.
Following ITR Forms are prescribed for Individuals (Non corporate assessees):
|ITR-1 (SAHAJ)||The most basic ITR form for individuals having income from salary/pension, one house property and interest|
|ITR-2A||For individuals/HUF having income from salary/pension, multiple house property and interest|
|ITR-2||For individuals/HUF having income from salary/pension, multiple house property, capital gains and interest|
|ITR-3||Form individuals/HUF who are partner in a firm and not carrying any business or profession under proprietorship|
|ITR-4S (SUGAM)||For individuals/HUF/Partnership firms having income from presumptive business or profession|
|ITR-4||For individuals/HUF having income from proprietary business or profession|
Following ITR Forms are prescribed for corporate assessees:
|ITR-5||For firms, association of persons (AOP), Body of Individuals (BOI), co-operative societies and local authorities|
|ITR-6||For companies other than companies claiming exemption under section 11 (such as charitable or religious trust)|
|ITR-7||For trusts, political parties, scientific research organisations, colleges and universities|
Know Your ITR
|Sources of Income||Individual||Individual/ HUF|
|Income From Salary/Pension||✓||✓||✓||✓||✓||✓|
|Self-Occupied House Property Income||✓||✓||✓||✓||✓||✓|
|Income from multiple House Property||✓||✓||✓||✓|
|Agricultural Income exceeding Rs. 5,000/-||✓||✓||✓||✓|
|Income from Other Sources||✓||✓||✓||✓||✓||✓|
|Winnings from lottery and racehorses||✓||✓||✓|
|Profit from a Partnership Firm||✓||✓|
|Income from Proprietary Business/ Profession||✓|
|Income from Presumptive Business/ Profession||✓|
|Foreign Assets Income||✓||✓||✓|
|Tax Relief under sections 90, 90A or 91||✓||✓||✓|
It is not mandatory for NRI to file an income tax return in India. However, there are three conditions in which NRI must file the return.
1. Their income in India exceeds the basic exemption limit
2. If excess taxes were deducted and they wish to claim the refund
3. If they wish to carry forward capital losses
No, you are not required to file income tax return if your income is not taxable (i.e below basic exemption limit for given assessment year). However if you incurred any losses (Business or Capital), you must file income tax return to carry forward such losses.
It is very common for salaried individuals to have all their taxes deducted by their employer. Still, you must file income tax return to claim any refund and/or carry forward any losses.
If you do not file income tax return, I-T Department will send you a notice telling you to file your return. If you have an outstanding tax liability then you will incur interest penalty u/s 234A, 234B and 234C. If you have refund and you do not file returns then you will not be able to claim refund. Hence, it is always advisable to file income tax return.
It is always beneficial to file income tax return. Here are few benefits
1. You can only claim refund if you file return
2. You can avoid interest penalty and/or default
3. IT return is a documentary evidence of your incomes
4. Banks, Consulates, other Financial Institutions demand IT return
Any person under the age of 18 is considered a minor. Although income earned by minor is taxable just like any other, minor can not file their independent tax return baring few exceptions. Minor’s income is clubbed with his/her parents income under section 64(1A). However in following instances, a minor can file Income Tax Return
1. None of the parents are alive
2. When minor earns income using special skills or knowledge