What is ITR?
Income Tax Return is a form in which the taxpayers file their details about his income earned and tax applicable to the income tax department.
The Income Tax department has notified various types of forms i.e.
The taxpayer should file his ITR on or before the specified due date.
ITR forms vary depending on the sources of income earned by the taxpayer and the categories of the taxpayer belong to like individuals, HUF, company, etc.
Why should you file ITR?
It is compulsory to file ITR in India if any of the conditions mentioned below are applicable to you:
If gross annual income is more than-
|Particulars (For individuals)||Amount|
|below 60 years||Rs 2.5 Lakh|
|above 60 years but below 80 years||Rs 3.0 Lakh|
|above 80 years||Rs 5.0 Lakh|
- Income earned from more than one source of income like house property, capital gains, etc.
- To claim an income tax refund from the department.
- Wish to apply for a visa or a loan
- If the taxpayer is a company or a firm, irrespective of profit or loss
It helps the taxpayers for filing the particulars in Income-tax Return Form-4 for the Assessment Year 2019-20 relating to the Financial Year 2018-19.
Who is eligible to use this Return Form
Individual or HUF being resident other than not ordinarily resident can use this form, or a Firm (other than LLP) which is a resident, whose total income for the assessment year does not exceed Rs.50 lakhs and who has income under the following heads: –
- Income from the business where such income is computed on presumptive basis under Section 44AD (i.e. Gross Turnover up to Rs. 2 crores) or Section 44AE (income from goods carriage up to ten vehicles); or
- Income from Profession – income is computed on a presumptive basis under Section 44ADA (i.e. Gross receipt up to Rs. 50 lakh); or
- Income from Salary/ Pension; or
- Income from House Property; or
- Income from Other Sources.
Note 1: The income computed on a presumptive basis under sections 44AD or 44AE or 44ADA it shall be assumed that the computed income after giving full effect of any losses, allowance, depreciation, or deduction under the Income-tax Act.
Who is not eligible to use this Return Form
A. These Form should not be used by a person who –
- is a Director in a company;
- has held, at any time during the previous year, any unlisted equity shares;
- any asset (in which entity financial interest is including) located outside India;
- signing authority in any account located outside India; or
- has income from any source outside India.
B. Also, this return form cannot be used by persons having any income of the following nature during the previous year: –
- PGBP and professions which are not required to be computed u/s 44AD, 44ADA or 44AE, such as income from,
- agency business,
- brokerage income
- speculative business etc.;
- Capital gains;
- Income from the house property;
- Income from other sources which is such as: –
- winnings from lottery;
- From owning and maintaining horse race;
- taxable income at special rates under section 115BBDA or section 115BBE;
- income to be apportioned by provisions of section 5A; or
- agricultural income above ₹5,000.