All about Income Tax Returns

Every individual having PAN and carrying out financial transaction need to file Income Tax Return for respective year.  Income Tax comes under the purview of Central government which is source of revenue to the government. There are two types of taxes Direct tax and Indirect Tax.  Tax levied directly on the Income earned called Direct Tax.  Tax calculations are based on the Income tax slab during the Financial Year. 

Types of Income Tax Payers:

• Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP) and Body of Individuals (BOI)
  
• Firms
• Companies

Types of Income / heads of Income:

Income from Salary: 

Income earned from salary and pension is taxable under this head of income

Income from Business and Profession: 

Profits earned by self employed individuals, businesses , freelancers or contractors & income earned by professionals like life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers are taxable under this head.

Income from Capital Gains:

Surplus Income from sale of a capital asset such as mutual funds, shares, house property etc is taxable under this head of Income.

Income from House Property:

Income earned from renting a house property is taxable under this head of income.

Income from Other Sources: 

Income from savings bank account interest, fixed deposits, winning in lotteries is taxable under this head.

Income Tax Slabs under new tax regime:

Types of ITR Forms:

1. ITR-1 : Resident Individual having income less than 50 Lakh can file ITR-1 which include Salary/Pension, One House Property

2. ITR-2 : This ITR can be filed in below case : 

    Income More than 50 Lakh

    Income From Capital gain

    Income From more than one House Property

    Foreign Income or Foreign Assets

3. ITR-3 : This ITR can be filed in below case : 

    Income From Business and Profession

    As a Partner in a Firm

    Presumptive Income Less than 50 Lakh

4. ITR-4 : This ITR can be filed in below case : 

        Presumptive Income is case:

        Salary/ Pension

        Other Source

        One House Property, Total Income less than 50 lakh

5. ITR-5 : This ITR can be filed in below case : 

       Firms

       AOP - Association of Person

       LLP's - Limited Liability Partnership

       BOI - Body of Individual

6. ITR-6 : This ITR can be filed in below case : 

    Companies Not claiming Exemption under Section-11

7. ITR-7 : This ITR can be filed in below case : 

    Person or Companies Under Section 139 4A, 4B, 4C and 4D

basis above conditions, We can prepare accounts and file respective Income Tax returns.