Income tax return (ITR) filing is required for individuals, NRIs, and businesses based on income and type. Different ITR forms are applicable, with due dates varying by taxpayer category. Late filing incurs penalties, making timely submission crucial.
Meaning and Applicability
Types of ITR Filing
| Return Type | Applicability |
|---|---|
| ITR-1 | ITR-1 form can be used by Individuals who have less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only. |
| ITR-2 | ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house property, income of more than Rs.50 lakhs. |
| ITR-3 | ITR-3 form must be filed by individuals who are professionals or persons who are operating a proprietorship business in India. |
| ITR-4 | ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income. |
| ITR-5 | ITR-5 form must be filed by partnership firms, LLPs, associations and body of individuals to report their income and computation of tax. |
| ITR-6 | ITR-6 form must be filed by companies registered in India. |
| ITR-7 | ITR-7 form must be filed by entities claiming exemption as charitable/religions trust, political parties, scientific research institutions and colleges or universities. |
Eligibility Criteria
- It is mandatory for individuals, NRIs, partnership firms, LLPs, companies and Trust to file income tax returns each year.
- Individuals and NRIs are required to file income tax return, if their income exceeds Rs.2.5 lakhs per annum.
- Proprietorship firms and partnership firms are required income tax return – irrespective of amount of income or loss.
- All companies and LLPs are mandatorily required to file income tax return, irrespective of turnover or profit.
Due Date for Filing Income Tax Return
| Taxpayer Type | Due Date |
|---|---|
| Individual Taxpayers | 31st July of every year |
| Companies and taxpayer requiring tax audit (without Transfer Pricing) | 30th September of every year |
| Companies and taxpayer requiring tax audit (with Transfer Pricing) | 31st October of every year |
Penalty for Late Filing Income Tax Return
Taxpayers who do not file their income tax return on time are subject to penalty and charged an interest on the late payment of income tax.
| Default Period | Penalty Amount |
|---|---|
| Late Filing between 1st August and 31st December | Rs.5000 |
| Late Filing After 31st December | Rs.10,000 |
| Penalty if taxable income is less than Rs.5 lakhs | Rs.1000 |
