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Income Tax Returns for Individual

Income Tax Returns for Individuals refer to the formal documentation submitted to a tax authority by individuals detailing their income, expenses, and other relevant financial information over a specific period, typically a year. This report is used to calculate the individual's tax liability or determine if they are eligible for tax refunds due to overpayments. The return includes various forms and schedules based on income sources such as wages, dividends, and capital gains, and may also include deductions and credits that reduce taxable income.

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Income Tax Returns for Individual

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  1. Income Tax Returns for Individual: Individual Tax Return An Income Tax Return (ITR) is a document that taxpayers use to report their income and tax obligations to the tax authorities. So far, the department has notified seven such forms, say; ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. It is required of every taxpayer to file their ITR before the deadline. Income Tax Returns for Individualis a crucial content that one who files their ITR should be aware of. The application ofIncome Tax Return formsdiffers according to the taxpayer’s income sources, income level, and taxpayer category (Individuals, HUFs, companies, etc). What is Income Tax Returns for Individuals? Income Tax Returns for Individuals refers to the form through which individuals file information about their income and tax liability with the income tax department. This form allows individuals to report their earnings from various sources, such as salary, business, or investments, and determine the amount of tax they owe to the government. By submitting an Income Tax Return, individuals fulfill their legal obligation and ensure compliance with tax laws. Some of the points you need to know about income tax returns for individuals are as follows. What is ITR-1? ITR-1 Form, Income Tax Returns for Individuals whose total income for the AY 2023-24 includes; Income from salary/pension; or • • Income from One House Property (excluding cases where loss is brought forward from former years); or Income from other sources (without including Lottery winnings and Race Horse Income). • Agrarian income up to INR 5,000. • What is ITR-2? ITR-2is meant for individuals or Hindu Undivided Families (HUFs) whose total income for the assessment year (AY 2023-24) falls under certain criteria; Salary and pension income. • Revenue from Real Estate. • Revenue from Other Sources (such as Lottery Winnings and Race Horse Revenue). • If you’re an Individual Director in a company. • If you have had investments in unrecorded equity shares at any time during the fiscal year. • • Being a Resident Not Ordinarily Resident (RNOR) and non-resident Income from capital earnings. Having any foreign income. •

  2. Agrarian income of more than INR 5,000. • • Owning assets (including fiscal interest in any entity) outside India, including signing authority in any account located outside India. • If Section 194N has been used to deduct taxes if an ESOP payment or tax deduction has been postponed. • If any loss needs to be carried forward under any income head, or if you have any brought forward losses. What is ITR-3? Any individual or HUF with income from a personal business or employment must utilize the most recentITR-3Form. Individuals who earn money from any of the following sources can submit an ITR-3. In short, individuals or HUFs who aren’t eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3. Carrying on a business or profession. • If you’re an Individual Director in a company. • If you have had investments in unrecorded equity shares at any time during the fiscal year. • • The return may include income from House property, Salary/ Pension, and Income from other sources. Income of a person in the firm as a partner. • What is ITR-4? The currentITR-4applies to residents who are individuals, HUFs, or partnership firms (excluding LLPs), and whose total income meets specific conditions; Business income according to the plausible income scheme under section 44AD or 44AE. • Professional income according to plausibleincome scheme under section 44ADA. • Income from salary or pension up to INR 50 lakh. • • Income from a single residential property, not to exceed INR 50 lakh (not including the number of losses that have been brought forward or that need to be carried forward). • Income from other sources, excluding lottery and racing horse revenue, but not exceeding INR 50 lakh. What is ITR-5? ITR-5 is for businesses, Limited Liability Partnerships (LLPs), Bodies of Individuals (BOIs), Associations of Persons (AOPs), Artificial Justice Persons (AJPs), Estates of the deceased and insolvent, Business Trusts, and Investment Funds. Having an idea about filing income tax returns for individuals will help in smooth process. What is ITR 6?

  3. For companies not eligible for exemption under section 11 (related to income from property held for charitable or religious purposes), electronic filing of returns is mandatory. • For individuals, including businesses, who are obligated to provide returns by Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F). • Every person in receipt of income received from property held under trust or other legal obligation fully for charity or religious purposes, or in part exclusively for such purposes, is required to make a return under section 139(4A). • Under section 139(4B), political parties must file a return if their total income surpasses the maximum non-taxable limit. Return under section 139(4C) is needed to be filed by every – • 1.Scientific research association; 2.News agency; 3.Organizations mentioned in section 10(23A) also have filing obligations.; 4.Institution referred to in section 10(23B); 5.Any hospital or other medical facility, fund, university, or other educational establishment. • Return under section 139(4D) is needed to be filed by every university, college, or other institution, which isn’t needed to furnish a return of income or loss under any other provision of this section. • Return under section 139(4E) must be filed by every business trust which isn’t needed to furnish a return of income or loss under any other provisions of this section. • Return under section 139(4F) must be filed by any investment fund appertained to in section 115UB. It isn’t needed to furnish a return of income or loss under any other provisions of this section. Conclusion In conclusion, the various ITR forms are essential for taxpayers to ensure compliance with tax regulations. Each form caters to different income sources and taxpayer categories, ranging from individuals to businesses and other entities. From ITR-1 to ITR-7, these forms have specific requirements and eligibility criteria, making it imperative for taxpayers to select the appropriate form for filing their returns. Ultimately, proper filing of Income Tax Returns for Individuals facilitates transparency and accountability in the taxation process, contributing to the efficient functioning of the tax system. Income Tax Returns for Individuals also plays a vital role. Consulting a professional tax consultant like24efilinghelps you to file your Income Tax Returns on time and hassle-free.

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