Income Tax Return (ITR): Definition, Documents, Filing Process & More

Filing an income tax return can be cumbersome, especially if you’re doing it for the first time. However, there is nothing to worry about! 

‍

With our comprehensive guide on ITR, you can comprehend the intricate details of income tax returns, the necessary documents, and the filing procedure. 

‍

What is an Income Tax Return (ITR)?

‍

Income Tax Return or ITR, is a form that taxpayers need to submit while filing their taxes. There is a different ITR form for different types of taxpayers—individual, HUF, company, etc. 

‍

Taxpayers need to check Form 16 & Form 26AS for TDS details and other income like FD interest.

‍

Documents for filing ITR

‍

Depending on the tax bracket, document requirements for ITR filing differ from taxpayer to taxpayer. However, some common documents are required for ITR filing for all taxpayers. 

‍

• PAN Card
• Salary Slips
• Bank statements
• TDS certificates
• Interest certificates
• Form 26AS
• Form 16A, 16B, 16C
• Proof of Tax-Saving Investments

‍

Types of ITR Filing

‍

There are a total of seven types of ITR filings for different taxpayers falling under different tax brackets.

‍

1. ITR-1

‍

Individuals who are Indian residents with a total income up to ₹50 lakhs. An individual can file ITR-1 if he/she is earning income through salary, house property, and other sources. Salaried taxpayers can file ITR-1 through Form 16. ITR-1 does not apply to NRIs. 

‍

2. ITR-2

‍

ITR-2 can be filed by taxpayers falling under the following categories: 

‍

• Individuals and HUFs whose source of income is other than business or profession. 

‍

• Salaried individuals have earned profits or losses through the sale and purchase of shares. 

‍

• Individuals and NRIs who have earned income from salary, more than one house property, capital gains, and other sources are eligible. 

‍

3. ITR-3

‍

ITR-3 is filed by individuals to report their income from business and profession. Salaried individuals who earn income from intraday share trades or income from futures and options (F&O) need to file ITR-3.

‍

In ITR-3, individuals can report from salaries, house property, capital gains, business or profession, and other sources. 

‍

4. ITR-4

‍

Individuals, HUFs, and partnership firms must file ITR-4 for their income under a presumptive scheme. The form applies to businesses with a turnover of up to ₹2 crore and are taxed under section 44AD.

‍

Income from a profession up to ₹50 lakh is also filed in ITR-4 and is taxed under section 44ADA. Freelancers working in a notified profession can also file ITR-4. Check out our guide for freelancers to file ITR.

‍

5. ITR-5

‍

Partnership firms, Limited Liability Partnerships (LLPs), associations of persons (AOP), and bodies of individuals (BOI) file ITR-5. These entities file ITR-5 for reporting income from businesses and professions and any other sources.

‍

6. ITR-6

‍

ITR-6 applies to companies that file income from business and profession or any other income source. 

‍

7. ITR-7

‍

ITR-7 to report income of companies, trusts, and associations claiming income tax exemptions.

‍

How to file ITR?

‍

Any individual can file an ITR through e-filing. All taxpayers must file an ITR, aside from certain exceptions. 

‍

1. Taxpayers whose income is less than the basic exemption limit do not require filing an ITR.

‍

2. Taxpayers aged 75 and above who meet the following conditions are exempt from filing ITR: 

‍

• Pension or interest income must be the only source of income. The interest income can come from any account that is kept with the same bank that provides the pension.

‍

• The taxpayer must have submitted a declaration to the bank.

‍

• The taxpayer’s bank must deduct TDS under section 194P.

‍

The reported income mentioned while filing ITR falls under income from salary, business and profession, house property, capital gains, and income from other sources. 

‍

The taxpayer needs to calculate the aggregate income and claim tax deductions for tax savings. You also need to deduct TDS, TCS, advance tax, and other taxes from income tax payable. 

‍

A tax refund can be claimed for excess tax or TDS paid during a financial year. You should pay any outstanding taxes before filing an ITR. 

‍

Types of ITR Forms 

‍

Form 16

‍

Form 16 is a salary TDS certificate that employees receive from their employer. The form provides details like gross salary and exemptions such as HRA and LTA. It also includes details such as net taxable salary, tax-saving deductions, salary TDS, and other reported income/loss. 

‍

Form 26AS

‍

Form 26AS includes details regarding TDS on various sources, namely salary, interest, and sale of immovable property. It also includes details like self-assessment tax, advance tax paid by taxpayers, and specified financial transactions. 

‍

Form 15G & 15H

‍

Form 15G & 15H enables an individual to receive income without TDS. An individual who is below 60 years of age and whose income is below the basic exemption limit can submit Form 15G. 

‍

A senior citizen whose tax due on total income is nil can file Form 15H. Forms 15G & 15H shall be submitted to the person who is providing the income. 

‍

Frequently Asked Questions

‍

1. How to check ITR status online?

‍

Individuals can check their ITR status online at https://www.incometaxindiaefiling.gov.in/e-FilingGS/Services/ITRStatusLink.html?lang=eng by entering their PAN or ITR acknowledgement number. 

‍

2. How many types of ITR?

‍

There are a total of 7 types of ITR forms according to an individual’s income sources and taxpayer categories. 

‍

3. What is Nil ITR?

‍

An individual whose total income is below the basic tax exemption limit can file an NIL ITR. Since the individual’s liability will be NIL, his/her income tax return will also be NIL.