Income tax is the tax imposed by government on the income or profits of an individual or an organization.

Income Tax Returns (ITR) filing needs to be done with the Income Tax (IT) department which shows the income and expenditure of the taxpayer. Tax is paid according to the different tax slab fixed by the government. ITR filing is done on the basis of PAN (Permanent Account number).

Who are liable for ITR filings?

ITR filing is compulsory for;

  • Indian residents
  • NRIs
  • Sole Proprietors
  • Companies
  • LLPs
  • Partnership firms

ITR filing is compulsory for any individual whose annual income exceeds Rs2,50,000/- . In case of partnership firms, LLPs, Sole proprietors and companies; filing ITR is compulsory irrespective of their turnover, income, profit or loss.

Benefits of ITR filing-

Filing income tax returns has many benefits. Some of them are as follows:

  • Income Tax refund
  • No issues with Income Tax department
  • Speedy visa process
  • Documentation of Financials

Income Tax slab rates-

Income tax slabs Tax rate Tax Payment
Income up to Rs 2,50,000 NIL
Income from Rs 2,50,000 – Rs 5,00,000 10% 25,000/-
Income from Rs 5,00,000 – Re 10,00,000 20% 25,000 + 1,00,000
Income more than Rs 10,00,000 30% 1,25,000 + (Total Income -1000000)*30%

In case the total income exceeds Rs 1 crore there is a 15% surcharge in the income tax.

For Senior Citizens (60 Years Old or More but Less than 80 Years old)

Income tax slabs Tax rate Tax Payment
Income up to Rs 3,00,000* NIL
Income from Rs 3,00,000 – Rs 5,00,000 10% 20,000/-
Income from Rs 5,00,000 – Rs 10,00,000 20% 20,000 + 1,00,000
Income more than Rs 10,00,000 30% 1,20,000 + (Total Income - 1000000)*30%

For Senior Citizens (80 Years Old or More)

Income tax slabs Tax rate Tax Payment
Income up to Rs 5,00,000* NIL
Income from Rs 5,00,000 – Rs 10,00,000 20% 1,00,000
Income more than 10,00,000 30% 1,00,000+ (Total Income-10,00,000)*30%

Partnership Firms/ Limited Liability Partnership (LLP)

Income range Tax rate Surcharge* EC & SHEC [% on (tax + surcharge)]
Up to Rs. 1,00,00,000 30% Nil 3%
More than Rs. 1,00,00,000 30% 12% 3%

Domestic Companies

Income range Tax rate Surcharge* EC & SHEC [% on (tax + surcharge)]
Up to Rs. 1,00,00,000 30% Nil 3%
More than Rs. 1,00,00,000 but, Less than Rs. 10,00,00,000 30% 7% 3%
More than Rs. 10,00,00,000 30% 12% 3%

*Income tax rate is 29% if turnover in the previous year is below Rs. 5, 00, 00,000.

Foreign Companies

Income range Tax rate Surcharge* EC & SHEC [% on (tax + surcharge)]
Up to Rs. 1,00,00,000 40% Nil 3%
More than Rs. 1,00,00,000 but, Less than Rs. 10,00,00,000 40% 2% 3%
More than Rs. 10,00,00,000 40% 5% 3%

Co-operative Societies

Income range Tax rate Surcharge* EC & SHEC [% on (tax + surcharge)]
Up to Rs. 10,000 10% NIL 3%
Rs. 10,000 – Rs. 20,000 20% NIL 3%
Rs. 20,000 – Rs. 1,00,00,000 30% NIL 3%
More than Rs. 1,00,00,000 30% 12% 3%

What are the penalties for late Income Tax Filing?

The government has kept certain penalty provisions for not filing ITR within the given time. Recently, the government has increased the penalties charged on late payment of income tax.

The late fine for income tax return filing are-

  • Filing between 1st August to 31st December- Rs5000/-
  • Filing after 31st December- Rs10,000/-

The below mentioned documents will be required for ITR

  • Basic Information

    1. PAN Number

    2. Aadhar Number

    3. Current address proof such as electricity bill, phone bill

  • Bank account details
  • Disclosures of income which include

    1. Salary

    2. Fixed deposits

    3. Saving bank account

  • Information about TDS return filing
  • Information regarding Deduction claimed under section 80
  • Previous IT filing details (Financial statement)
  • User ID and password for login, if any

The entire process for Income Tax return filing is quite complex and time taking. It includes:

  • The different steps for filing ITR
  • Being aware of the due dates
  • Knowing different forms for ITR
  • Selection of plan

Steps for filing Income Tax Return filing-

Due Dates for IT return filing-

  • July 31
    For individuals and firms not liable to audit
  • September 30
    For companies and others who are liable for audit
  • March 31
    Belated returns for companies and individuals

ITR filing cannot be done for the previous year hence, one has to be careful about the due dates in order to avoid penalties.

What are the forms for ITR FILING?

ITR filing forms range from ITR-1 to ITR-7. Here is a description about all of the ITR forms.

Forms for ITR Filing Description
ITR 1 For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income up to Rs.50 lacs
ITR 2 For Individuals and HUFs not having income from profits and gains of business or profession
ITR 3 Income from profits and gains of business or profession from Individuals and HUFs
ITR 4 For presumptive income from Business & Profession
ITR 5 For persons other than:-
  • Individual
  • HUF
  • Company
  • Individual filing form ITR-7
ITR 6 Companies except companies claiming exemption under section 11
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)

What to do after filing ITR?

After ITR is filed one gets a 15 digit acknowledgement number which will help you in verifying your tax returns.ITR can be filed using net banking.

What are the common mistakes while filing ITR forms?

From the above mentioned details it is very evident that the process of Income Tax Return filing is not straightforward and simple. Hence, it is very common that people make mistakes while filing it.

Here are some common mistakes one must avoid while filing the form:

  • Wrong selections like-
    1. ITR Forms
    2. Assessment Year
  • Wrong Details
  • Hiding income disclosure
  • TDS not reconciled with form 26S
  • Non payment of advance tax
  • Dispatch of ITR-V on time

At Starters’ CFO our work starts from the scratch i.e. collecting the basic documents and goes all the way to filing ITR.

  • Document Collection- Our experts will collect all the required documents well in advance, so that the process of filing is hassle free.
  • Reminders- Individuals generally tend to forget the date for ITR and end up paying penalties. We make sure you get timely reminders and the filing is done well within the time frame.
  • Preparation- Once all your documents are collected our experts starts preparing for the process of ITR filing. An Income Tax return will be prepared and sent to you for approval.
  • Income Tax Return filing- Once we get approval from your side we will go on with filing the income tax returns with the IT department.

FAQs :

Income tax return is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the income tax department.

Filing of income tax provides proof for your income as legal and disclosed. It helps you in many ways such as getting refunds, applying for loans, applying for tenders, startup funding etc.

Under the Income tax law different forms of returns are prescribed for different classes of taxpayers. The returns forms are known as ITR forms (Income tax return forms).

a) By furnishing the return in a paper form

b) By furnishing the return electronically under digital signature

c) By transmitting the data in the return electronically under electronic verification code

d) By transmitting the data in the return electronically and thereafter submitting the verification of the return in

ITR forms, whether filed manually or filed electronically, do not require any documents like proof of investment, TDS certificates, etc.

ITR can be filed either in hard copy at the local office of the Income tax department or can be electronically filed at www.incometaxindiaefiling.gov.in.

IT department has established an independent portal for e-filing of return.

The excess tax can be claimed as refund by filing your income tax return (ITR).


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