simply income tax means tax on gross income has to pay to central government which is decided by government on the basis of income. Income tax return filing is very important for everyone either who is individuals, NRIs, Partnership firm, LLPs company or trust. It is mandatory for everyone to file income tax returns each year. An Individuals and NRIs are required to file income tax return, if their gross income exceeds above Rs.2.5 lakhs in a year . Proprietorship firms and partnership firms are also required to file their income tax return - irrespective of amount of income or loss. All companies and LLPs are mandatorily required to file their income tax return, irrespective of turnover or profit. FilingBuzz.com provides income tax efiling return services with our dedicated Tax Expert support. For filing your income tax return Upload your Form-16,and be relax. Our tax experts will file your income tax return and provide you the update within 1 - 4 business days.
A Taxpayers who did not file their income tax return on time are subject to penalty and charged an interest on the late payment of income tax. Also, the penalty for late filing income tax return on time has been increased recently. The penalty for late filing income tax return is now as follows:
If you are a businessman,then tax audit would be required if the total sales turnover or gross receipts in the business exceeds Rs.1 crore in any previous year.
If You are in a profession or professional, in that case tax audit would be necessary if your gross income/profit in the profession exceeds Rs.50 lakhs in any of the previous year.
If a person is enrolled under the presumptive taxation scheme under the section 44AD and total turnover or sales is exceeds more than Rs. 2 crores, then tax audit would be required.
INCOME TAX RETURN having different Category forms on the basis of individual and companies.As follows
ITR1 is a SAHAJ form It is the mostly used by Individuals Who have their income
more than 50 Lakhs and have earned their income through Salary Or pension in the
financial year and having only one house Property and other sources excluding racehorses,
legal gambling, lottery, etc are required to file their Income Tax Return with using
ITR-1 form must be filed by individuals and HUFs on or before 31st July of every year.
The ITR-2 Form is an important Income Tax Return form because those Individuals who are not eligible to use ITR-1 who can use the ITR-2 Form.Individuals and Undivided Hindu Families who have their Income exceeding 50 Lakhs, through Salary Or pension for the Financial Year and who have more than House Property, Income from Capital Gains, Income from foreign assets/Income, Income from business or profession as a partner (not proprietor) and other sources including racehorses, legal gambling, lottery are eligible to file their Income Tax Return using ITR-2. ITR-2 form must be filed by individuals and HUFs on or before 31st July in a each year.
The ITR-3 Form particularly for those Individuals and Hindu Undivided Families who
have eating their income from carrying on a profession or from Proprietary business.
If an Individual/HUF is having income as a partner of a partnership firm that is
carrying out business/profession, he cannot file ITR-3. In such case, he is required
to file ITR 2.
Due date for filing ITR3 is 31st July for Individuals and 30th September for Businesses.
The ITR-4 Form particularly used by Individuals, Hindu Undivided Families who are having a running business with turnover of less than 2 Crores and Professionals with gross income exceeding 50 Lakhs, provided they have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act.
The ITR-5 Form is mostly used by Firms, Limited Liability Partnerships(LLPs), Association of persons(AOPs) and Body of Individuals(BOIs), Artificial Juridical Person, Cooperative society and Local authority, provided they are not required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) (i.e., Trusts, Political party, Institutions, Colleges, etc.). Individuals, HUFs (Hindu Undivided Families), Companies cannot use the ITR-5 Form.
The ITR-6 Form can be used only by Companies. Only companies that are not claiming exemption under section 11 (Income from property held for charitable or religious purposes) can use the form to file their Tax Returns with the Income Tax Department of India.
ITR-7 Form mostly used by Companies, Firms, Local authority, Association of Person (AOP) and Artificial Judicial Person that are claiming exemption as one the following :