Income Tax in India is a form of tax levied by the Central Government on the income of individuals, businesses, and corporations. It is a crucial part of the country’s revenue collection and plays a significant role in the economic growth of India. These forms serve as a means for the government to gather information regarding the taxpayer’s income, expenses, and deductions. In this article, we will discuss various IT forms that are commonly used in India. We will also discuss their significance, who should file them, and how to file them.
IT Forms Applicable in India
To regulate the collection of income tax, the government has introduced several forms that need to be filed by taxpayers. Here is the list of applicable IT forms in India. Let’s check them one-by-one and see which is for whom.
ITR-1
ITR-1, also known as Sahaj Form, is a form that is used by individuals who earn income from salary, pension, or interest. It is a simple one-page form that needs to be filled by individuals whose total income is less than Rs. 50 lakhs. ITR-1 form needs to be filed by individuals who have earned income from the following sources:
- Income from salary/pension
- Income from one house property
- Income from other sources (excluding winning from lottery and income from race horses)
ITR-2
ITR-2 is a form that needs to be filed by individuals who have earned income from sources other than salary, pension, or interest. This form is applicable to individuals whose total income is more than Rs. 50 lakhs. ITR-2 form needs to be filed by individuals who have earned income from the following sources:
- Income from salary/pension
- Income from more than one house property
- Income from capital gains
- Income from foreign assets/foreign income
- Income from other sources (excluding winning from lottery and income from race horses)
ITR-3
ITR-3 is a form that needs to be filed by individuals who are self-employed or professionals. This form is applicable to individuals whose total income is more than Rs. 50 lakhs. ITR-3 form needs to be filed by individuals who have earned income from the following sources:
- Income from salary/pension
- Income from more than one house property
- Income from capital gains
- Income from business or profession
ITR-4
ITR-4, also known as Sugam Form, is a form that is used by individuals who are engaged in business or profession and have opted for the presumptive taxation scheme under section 44AD, section 44ADA, or section 44AE of the Income Tax Act. It is a simplified one-page form that needs to be filed by individuals whose total income is less than Rs. 50 lakhs. ITR-4 form needs to be filed by individuals who have earned income from the following sources:
- Income from business or profession
- Income from one house property
- Income from other sources (excluding winning from lottery and income from race horses)
ITR-5
ITR-5 is a form that needs to be filed by partnerships, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), and other entities. This form is applicable to entities whose total income is more than Rs. 50 lakhs. ITR-5 form needs to be filed by entities who have earned income from the following sources:
- Income from business or profession
- Income from capital gains
- Income from other sources (excluding winning from lottery and income from race horses)
ITR-6
ITR-6 is a form that needs to be filed by companies other than those who claim exemption under section 11 of the Income Tax Act, which deals with exemption of income for charitable or religious purposes. ITR-6 form needs to be filed by companies whose total income is more than Rs. 50 lakhs. Companies who claim exemption under section 11 of the Income Tax Act need to file ITR-7 instead of ITR-6.
ITR-7
ITR-7 is a form that needs to be filed by entities who are required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) of the Income Tax Act. ITR-7 form needs to be filed by entities such as trusts, political parties, research associations, educational institutions, etc.
Here is a table of various IT forms in India with their category and clause.
| Form | Category | Clause |
|---|---|---|
| ITR-1 | For Individuals | Section 139(1) |
| ITR-2 | For Individuals and HUFs not having income from business or profession | Section 139(1) |
| ITR-3 | For individuals and HUFs having income from business or profession | Section 139(1) |
| ITR-4 | For presumptive income from business and profession | Section 139(1) |
| ITR-5 | For persons other than individuals, HUFs and companies | Section 139(1) |
| ITR-6 | For companies other than companies claiming exemption under section 11 | Section 139(1) |
| ITR-7 | For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) | Section 139(1) |
| ITR-V | Acknowledgement |
Significance of IT Forms
IT Forms are significant for several reasons. Firstly, they serve as a means for the government to gather information regarding the taxpayer’s income, expenses, and deductions. Secondly, they help in regulating the collection of income tax and prevent tax evasion. Thirdly, they serve as a proof of income for individuals and entities who may require it for various purposes such as obtaining loans, visas, etc. Fourthly, filing IT forms on time helps in avoiding penalties and legal consequences.
Who Should File IT Forms
IT Forms need to be filed by individuals and entities who have earned income during the financial year. The following individuals and entities need to file IT forms:
- Individuals who have earned income from salary, pension, interest, business, profession, capital gains, etc.
- Partnerships, LLPs, AOPs, BOIs, and other entities.
- Companies other than those who claim exemption under section 11 of the Income Tax Act.
- Entities who are required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) of the Income Tax Act.
How to File IT Forms
IT Forms can be filed both online and offline. The following are the steps to file IT forms online:
- Visit the official website of the Income Tax Department of India (https://www.incometaxindiaefiling.gov.in/).
- Register yourself as a new user and create a user ID and password.
- Log in to your account and select the relevant IT form that needs to be filed.
- Fill in the required details such as personal information, income details, deductions, taxes paid, etc.
- Upload the necessary documents such as Form 16, Form 26AS, etc.
- Verify the details and submit the form.
- After submission, an acknowledgement receipt will be generated. Save the receipt for future reference.
The following are the steps to file IT forms offline
- Obtain the relevant IT form from the Income Tax Department or any other authorized source.
- Fill in the required details such as personal information, income details, deductions, taxes paid, etc.
- Attach the necessary documents such as Form 16, Form 26AS, etc.
- Sign the form and send it to the Income Tax Department’s office by post or submit it physically.
- After submission, an acknowledgement receipt will be issued. Save the receipt for future reference.
Different Ways of Filling IT Forms
In India, taxpayers can file their income tax returns using different methods. The methods of filing income tax returns have evolved over the years, and taxpayers can now file their returns online or offline. Here are the different ways of filling IT forms in India:
Online Filing
Online filing of income tax returns has become increasingly popular in recent years. Taxpayers can file their returns online using the Income Tax Department’s official website, which is free of cost. To file the returns online, taxpayers need to register themselves on the website and submit their returns online by filling out the relevant forms. Online filing is convenient, saves time, and reduces the chances of errors.
Offline Filing
Taxpayers who are not comfortable with online filing can opt for offline filing of income tax returns. They can download the forms from the Income Tax Department’s website, fill them out, and submit them at the nearest Income Tax office. Alternatively, they can also obtain the forms from the Income Tax office and fill them out manually. Offline filing is more time-consuming and may involve a greater risk of errors.
Filing Through Tax Return Preparers (TRP):
Taxpayers can also choose to file their returns through Tax Return Preparers (TRP). TRPs are authorized by the Income Tax Department to assist taxpayers in filing their returns. They can help taxpayers fill out the forms correctly and submit them on their behalf. TRPs charge a fee for their services.
Filing Through Chartered Accountants (CA)
Taxpayers who have complex financial affairs may choose to file their returns through Chartered Accountants (CA). CAs are qualified professionals who can provide expert advice on tax matters, prepare tax returns, and represent taxpayers in disputes with the tax authorities. CAs charge a fee for their services.
Mobile App Filing
There are various mobile apps available in India through which you can file income tax return without any hassle. These apps are user-friendly and enables taxpayers to file their returns from anywhere at any time.
Documents Required with IT Forms
Filing income tax returns in India requires taxpayers to provide various documents and details to support their income and deductions claims. Here are some of the essential documents required with IT forms in India:
PAN Card
PAN (Permanent Account Number) is a unique identification number issued by the Income Tax Department to taxpayers. It is mandatory to have a PAN card to file income tax returns.
Form 16
Form 16 is a certificate of TDS (Tax Deducted at Source) issued by employers to their employees. It contains details of the salary earned, TDS deducted, and tax paid by the employer on behalf of the employee.
Form 16A/16B/16C
Form 16A/16B/16C is a certificate of TDS issued by banks, tenants, or any other person who makes payment to the taxpayer. It contains details of the payment made, TDS deducted, and tax paid by the person on behalf of the taxpayer.
Bank Statements
Bank statements of all bank accounts held by the taxpayer during the financial year are required to support the income and expenditure claims made in the income tax returns.
Investment Proof
Documents supporting the investment claims made in the income tax returns, such as investment in tax-saving schemes, ULIPs, NSCs, PPFs, and other financial instruments, need to be submitted.
Capital Gain Details
Details of capital gains, if any, realized during the financial year, such as sale of property or shares, need to be submitted along with the IT forms.
Business Income Details
Details of business income, such as profit and loss account, balance sheet, and tax audit report, need to be submitted by taxpayers having income from business or profession.
House Property Details
Details of income earned from house property, such as rent received, interest paid on home loan, and property tax paid, need to be submitted.
Aadhaar Card
Aadhaar Card, a 12-digit unique identification number issued by the UIDAI (Unique Identification Authority of India), is mandatory for income tax returns filing from the assessment year 2019-20 onwards.
Filing income tax returns in India requires taxpayers to provide various documents to support their income and deductions claims. The documents required may vary based on the taxpayer’s income sources and type of income.
It is essential to keep all the necessary documents ready while filing income tax returns to avoid any delay or penalty.
FAQs on Various IT Forms
The deadline for filing income tax returns in India is July 31st of every year, for the assessment year (AY) following the financial year (FY) for which the returns are being filed. However, the deadline may be extended by the Income Tax Department in certain cases.
Yes, taxpayers can file their income tax returns without Form 16. However, they need to calculate their total income and TDS on their own and provide the relevant details in the IT forms.
No, it is mandatory to have a PAN (Permanent Account Number) card to file income tax returns in India. Without a PAN card, the taxpayer will not be able to file their income tax returns.
No, ITR-1 is for individuals having income from salary, pension, one house property, or other sources of income, but not income from business or profession. Taxpayers having income from business or profession need to file ITR-3 or ITR-4, depending on the type of income.
ITR-1 is for individuals having income from salary, pension, one house property, or other sources of income, but not income from business or profession. On the other hand, ITR-2 is for individuals and HUFs (Hindu Undivided Families) having income from salary, pension, more than one house property, capital gains, and income from other sources, but not income from business or profession.
If a taxpayer fails to file their income tax returns by the due date, they may have to pay a penalty of up to Rs. 10,000. The penalty may increase further if the returns are filed after December 31st of the assessment year.
Yes, taxpayers can file income tax returns for multiple years at once. However, they need to choose the appropriate IT form for each assessment year and provide the relevant details.
ITR-4 is for presumptive income from business and profession, where the income is calculated based on a certain percentage of the gross receipts or turnover. ITR-4S (Sugam) was a simplified version of ITR-4, but it has been discontinued since the assessment year 2017-18.
Conclusion
In conclusion, income tax forms play a crucial role in the taxation process in India. The various IT forms available cater to different types of taxpayers and their sources of income.
Each form has its own set of rules, regulations, and requirements, and it is essential for taxpayers to familiarize themselves with these details before filing their returns. The IT department has made the process of filing tax returns easier by providing online facilities and options for e-filing.
Taxpayers must ensure that they have all the necessary documents and information before filing their returns to avoid penalties and other legal complications.
By understanding the different IT forms and their requirements, taxpayers can ensure compliance with tax laws and contribute to the nation’s progress by paying their fair share of taxes.