How to get Income Tax Return Form?

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Tax filing is quite confusing and this is the reasonou need a guide to pick out the right form to file your returns. There are different types of tax return forms based on the source of income of a person.  Thus, you need to be careful while selecting your income tax return form. Here, we will discuss how to pick the right Income Tax Return (ITR) form.

Income Tax Return Form

Income Tax Return Form is specifically designed for salaried individuals to file income tax returns. The Income tax Rules 1962 and Income Tax Act 1961 mandates the citizens to file tax return at the end of every financial year with the income tax department. Every Income Tax Return Form is applicable to certain section of tax payers. Before filling the income tax return form, it is important for taxpayers to confirm which type of ITR (Income Tax Return) form to file. The form type entirely depends on the income earned by the taxpayers, or in certain cases where the individual holds any asset in foreign country or earns income from foreign country.

Any salaried individual of the country who fulfills the below mentioned conditions should fill the income tax return form and file the ITR during a financial year.

  • Owns a vehicle
  • Has a valid credit
  • Take care of foreign travel, either for them/another individual.
  • Has a property

There are in-total 9 types of the income tax form that the tax assesses can use in order to file income tax return.  

Individual Income Tax?

In India, the income tax is imposed on the individual assessee on basis of the income tax slab system. Different tax rates are set for different income tax slab and the tax rate rises with the increase in income of individual. During every budget, the tax slab rates changes. However, as 2018 budget has not announced any changes in the tax slab, thus it remains the same. Individuals paying income tax are divided into three category i.e.

  • Individuals below the age of 60 (Residents plus Non-residents)
  • Individuals who are 60 or above 60 years but not more than 80 years of age (Residents Senior Citizens).
  • Individuals who are above 80 years of age ( Resident Super Senior Citizens)

Income Tax Slab for FY 2018-2019 for Hindu Undivided Family (HUF) & individuals who pay tax (Below 60 years of age)

Income Tax Bracket

Tax Rate

Health and Education Cess

Up to Rs.2.5 Lakh Income

No tax

---

From Rs.2.5 Lakh -Rs.5 Lakh Income

5%

4% of the income tax

From Rs.5 Lakh-Rs.10 Lakh Income

20%

4% of the income tax

Above Rs.10 Lakh  Income

30%

4% of the income tax

 

  • If the total income of an individual is more than 50 Lakh up to 1crore the surcharge of 10% of the income tax is applicable.
  • If the total income of an individual exceeds Rs.1crore then surcharge of 15% of the income tax is applicable.

For financial year 2018-2019, the limit of the income tax deduction is set up to Rs.2.5 Lakhs for HUF and individuals other than the ones which are covered in part (II) or part(III)

 

Income Tax Slab for FY 2018-2019 for the Senior Citizens who have attained an age of 60 or above but not more than 80 years of age -Part (II)

Income Tax Slab

Tax Rate

Health and Education Cess

Up to Rs.3 Lakh Income

No tax

---

From Rs.3 Lakh-Rs.5 Lakh Income

5%

4% of the income tax

From Rs.5 Lakh-Rs.10 Lakh Income

20%

4% of the income tax

Above Rs. 10 Lakh Income

30%

4% of the income tax

 

  • If the total income surpasses Rs.50 Lakh up to 1crore the surcharge of 10% of the income tax is applicable.
  • If the total income surpasses Rs.1crore then surcharge of 15% of the income tax is applicable.

For financial year 2018-2019, the limit of income tax deduction is set up to Rs.3,00,000except those who are covered in part (II) or part(III)

Income Tax Slab for Financial Year 2018-2019 for the Senior Citizens who have attained an age of 80 years or More-Part (III)

Income Tax Slab

Tax Rate

Health and Education Cess

Up to Rs.5 Lakh Income

No tax

---

From Rs.5 Lakh-Rs.10 Lakh Income

20%

4% of the income tax

Above Rs.10 Lakh Income

30%

4% of the income tax

  •  If the total income surpasses Rs.50 Lakh up to 1crore the surcharge of 10% of the income tax is applicable.
  • If the total income surpasses Rs.1crore then surcharge of 15% of the income tax is applicable.

For financial year 2018-2019, the limit of income tax deduction is set up to Rs.5 Lakh except those who are covered in part (II) or part(III).

Types of Income:

In order to pick out the right ITR form, you need to know the tax slab, which is applicable depending on the salary break-up or the income types specified under the tax laws.

  • Income from Salary: If you are an employer ormployee of any company, then the salary earned from the companysalary income head. Any pension that the taxpayer receives is taken into consideration under this section.
  • Income source is a self-owned property: There are many people who have more than one commercial or residential property, so they rent it out, give it on lease or for any other purpose. Thus, the regular income earned from these sources falls under this category.
  • Income source is profession or business: This section comprises of the money earned from a business that can be a private consultation or through part-time or freelancing.
  • Income source is capital gains: Earnings from capital assets for instance, equity markets, stocks, gold or property come under the income from capital gains. There are two types of capital gains i.e. short term or long term. Capital gains further depend on the time since you have owned the house and the money youarned from it.
  • Sources others than the ones mentioned above: Any income that does not fall under any of the categories mentioned above comes under income from other sources. Apart from all thist includes the interest levied on incomehich is earned from the winnings of the lottery, savings account in banks, monetary gifts exchanged, etc.

The Different Income Tax Return Forms:

There are several types of forms available to file income tax return. Depending on the type of incomen individual needs to pick out the right form that helps him to select the right form. Now, we will discuss about the forms that are available:

ITR 1 (Sahaj):  Individuals whose income source is pension or salary need to select ITR1 or Sahaj form. Whereas individuals who have other sources to earn their income for instance, rental from an owned property or interest earned on deposits, etc. cannot select this form.

People or HUFs (Hindu Undivided Family), who have exempt earnings (such as dividends) of above Rs. 5000, can make use of Form ITR 1. However, individuals who have earned their income using foreign assets or lottery prizes cannot use this form to file their tax returns. Likewise, this form cannot be used, if an individual seeks deductions under Section 90 or 91.

ITR 2: As compared to other formshis one is much more complex. This form is used by any individual or a Hindu Undivided Family that earns their income from salary or even if they have more than one property. This form can be used by those who have gone through a loss of income due to a house/property. However, the income source of the individual must not be from any foreign income or capital gains. ITR 2 is also not used by those who pursue a business or profession.

ITR 2A: One of the most recent forms in Income tax returns is the ITR 2A. Taxpayers whose income source is pension or salary and/or the income source exceeds from more than one house property and/or income from distinct sources can make use of Form 2A to file returns. Incomes of people from any sort of capital gains or through any foreign assets or deduction of taxes under Section 90 or 91 cannot go for this form.

ITR 3: ITR 3 is the form that can be used by the ones that are partners of any firm. However, you cannot use this, if you are the only owner of the business or are proprietors.

ITR 4: If the annual income of an individual or a Hindu Undivided Family running a business or profession is more than 60 lakhs; then they can make use of ITR Form 4 in order to file returns of their taxes.

ITR 4S (Sugam): If the gross income of the business owner of a small scale industry does not exceed more than Rs. 60 lakhs; then they  can make use of ITR 4S form to file their tax returns.

ITR 5: This form is used by firms, including LLPs, Association of Persons (AOPs) and Body of Individuals (BOIs), co-operative banks etc. to file their taxes.

ITR 6: Any companies, apart from those that claim exemptionccording to Section 11, have to fill the ITR Form 6 in order to file their income tax returns every year.

ITR 7: ITR form 7 is a specialized form that is filled by individuals or companies that need to submit their returns as defined under Section 139(4A) or Section 139(4B), Section 139(4C) or Section 139(4D). These forms discussed above can be downloaded in all the existing versions.

All you need to do is to figure out the most suitable ITR form, then you can easily file your tax return online and you do not have to worry about anything else.

Steps to File Income Tax Return Form Online 

Depending on the category and type of different sources and level of income, we have different income tax forms available for us. However, there are few prime requisites that you need to follow before filing an online income tax return form.

You Need to Have the Following Things-

  • Bank statements
  • Form 16
  • Photocopy of the return for of the previous year

Make sure that all required the documents are ready. Along with the documents you need to follow the steps mentioned below in order to go through a smooth online filing process of your income tax return form online.

Steps to Streamline your Income Tax Returns Filing-

  1. Registration – In order to register, you need to have your Permanent Account Number (PAN) and this is also the user’s ID.
  2. Tax Credit Statement (Form 26AS) – You need to check this for the last financial year. It will list all the taxes that have been deducted and have been deposited to the Income Tax Department.
  3. The TDS (Tax Deducted at Source) of Form 16 must be equal to the ones that are mentioned in Form 26AS.
  4. Current year’s Tax Return – Under the ‘Download’ menu, make sure that you have Income Tax Return Forms and then you need to select the current financial year. Make sure that you have picked up the right ITR form for yourself. Including this, you also have an option that guides you to accomplish the entire process on your portal itself, using the ‘Quick e-file ITR’ link.
  5. Software for Return Preparation – This is more like a spreadsheet that can be used through Open Office, Microsoft Office, or any other spreadsheet application that are online and make sure to fill the form using details mentioned in Form 16.
  6. ‘Calculate Tax’ tab is where you need to click in order to find out the tax that you need to pay. If you require this, make sure to pay your due tax and fill in the details of the challan in your tax return.
  7. ‘Validate’ tab is used to confirm the information filled.
  8. Generate an ‘XML file’ of the form and then save it on your computer.
  9. Upload Return – You need to select the current financial year in the ‘Upload Return’, which is on the left-hand side of the portal, pick the XML file that you have saved earlier. Along with this, you might have an option that allows you to sign the file digitally. Select ‘Yes’ in case you have a digital signature, and ‘No’ if you do not have one.
  10. ITR - V - If you have successfully completed the process of filling the form, you will get to see an appropriate message on the website. This allows you to download an acknowledgement form which is called the ITR-Verification or ITR-V.
  11. There after you need to sign a printed copy of your ITR-V form and send it to the nearest Income Tax Department office through Speed Post or even normal and it needs to reach the office within 120 days after filing the returns. One cannot only use the official site of Government of India to file their tax returns. As along with the official website, you can also make use of several private portals that allow you to file returns online and charge them some specific fee according to the services offered to them.

Before filing your income tax return form, you need to make sure to pick out the most suitable ITR form and rest the online application is quite easy.

You may like to Read: How to efile Income Tax

Income Tax Return Form - Frequently Asked Questions:

1. What is an individual income tax return?

Ans- An individual income tax return is an income tax form which the individuals need to submit to the income tax department of India at the end of the financial year. For every salaried individual it is mandatory to file income tax return form. Any salaried individual of the country who fulfills the below mentioned conditions should fill the income tax return form and file the ITR during a financial year.

  • Owns a vehicle
  • Has a valid credit
  • Take care of foreign travel, either for them/another individual.
  • Has a property

2. How do I calculate my income tax rate?

Ans- How much tax one needs to pay depends on the related tax slab to their income. The income tax is computed according to the tax slabs.  Income tax calculation for salaried is computed as income from the salary is the sum of the basic salary+ Special Allowances+ HRA+ Transport Allowance (TA) + any other allowance. Some components of the salary are tax exempted like telephone bills reimbursement, medical reimbursement. If the individual receive House Rent Allowance (HRA) and live on rent, then he/she can claim tax exemption on HRA. The transport allowance is given to the salaried individual as a part of their salary in order to meet their travel expenses.

3. What is a personal income tax?

Personal income tax is the tax paid on individual’s personal income as separate from the tax paid on the companies earning. In a joint company, the owners i.e. shareholders make payment of taxes on both their incomes (dividend or salary from the company) and company’s income (profits)

4. What is taxable income and exempt income?

Ans-Taxable income is the income on which income tax is imposed. Whereas, on the other hand income tax exemption is set by the income tax law on the income which are exempted from tax.

5. How many types of the income tax forms?

Ans- Here are the types of the income tax return form used in India:

  1. ITR1- This income tax form is applicable for salaried individuals or individuals who receive income through pension or income from a house or property or income from other sources besides lottery winning and race horses.
  2. ITR2- HUFs and all individuals will have to use ITR2 who cannot file ITR1. ITR2 is applicable even for those tax payers who earns income subject to tax under “gains profits from business or profession” through bonus, interest, remuneration, commission or salary from Partnership Company will have to use ITR2.
  3. ITR3- The individuals or HUFs who are self-employed or have proprietary business will have to file ITR3.
  4. ITR4-The partnership company, HUFs and Individuals who have chosen the presumptive taxation scheme apart from limited liability firm under section 44ADA/section44AD/Section 44AE of the income tax Act will be required to file ITR4.
  5. ITR5- ITR 5 has to be filed by any company, AOP, BOI , Co-operative society, artificial judicial person and local authority mentioned in section 2(31)(vii) of the income tax Act.
  6. ITR6- This form is applicable for all companies apart from those which claim tax deduction under section 11 of the income tax Act.
  7. ITR7- This form is applicable for individuals, inclusive of firms that are obligated to submit returns under section 139(4A), Section 139(4B), Section 139(4c), Section 139(4D), Section139(4E) and section 139(4F) like investment funds, colleges, trusts, political parties, institution, etc.
  8. ITRV-This is the acknowledgement of filing Income Tax Return Form.

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