Income tax is the tax which is levied on the profit or we say income earned during a financial year. By the end of the year the tax is paid by the estimate taken from the last year. This tax is imposed on every individual, Hindu Undivided Family, Company, Partnership Firm or any Sole Proprietors. This tax is imposed on everyone with the different amount according to the income they have earned in the financial year.
According to the category of Income the person falls the amount of tax is defined which is made on the basis of the age of the individual which are normal, Senior citizen and super senior citizen. This is imposed under the Indian Income Tax act, 1961 and it is a part department of Revenue under the Ministry of Finance, Government of India moreover this is the main source of funds that the government uses in activities and serving the public and help in developing the nation.
Income tax forms are used to report income and file income taxes with the tax authorities. Tax returns allow taxpayers to calculate their amount of the tax to be paid or it may be the request for the return according to the rules. Tax returns are compulsory for every individual or business that comes under any category making a tax liability on them has to file it every year.
- Under the income tax law, different forms of return are prescribed for different classes of taxpayers. The return forms are known as Income tax return forms or say the ITR forms. The forms of return prescribed by the Income-tax law for the filing of return of income for the assessment year are some of the forms are:
- ITR – 1, this form is applicable on the individual earning through salary or pension income or from one house property or any income from other sources
- ITR -2A, this form is to be filed by an Individual or by Hindu Undivided Family whose total income for assessment year which not includes income from business or profession or capital gains. This includes only claiming the foreign tax credit or having any assets located outside India or having any signing authority in any account located outside India or having income from any source outside the India but cannot be used to file the return on Income.
- ITR-2 is filled by an individual or a Hindu Undivided Family having income from any source other than “Profits and gains of business or profession”
- ITR-3 is applicable to an individual or a Hindu Undivided Family who is a partner in a firm and where income chargeable to tax under the head “Profits or gains of business or profession” excludes all income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm
- ITR -4Sis the form applicable to individuals or Hindu Undivided Family or partnership firm (other than limited liability partnership firm) who has opted for the presumptive taxation scheme of section 44AD/44AE.
- ITR- 4 is applicable to an individual or a Hindu Undivided Family who is carrying on a proprietary business or profession.
- ITR-5 is the Form can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), co-operative society and local authority. However, persons who are required to file their income tax return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F) shall not use this form (i.e. trusts, political parties, institutions, colleges, investment fund etc.)
- ITR-6 is applicable to a company, other than a company claiming exemption under section 11 (exemption under section 11 can be claimed by the charitable/religious trust).
- ITR-7 is applicable to a persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F) (e.trusts, political parties, institutions, colleges, investment fund, etc.).
- ITR-V is the acknowledgement of filing the return of income
There are different types of Income tax forms available listed above in which private limited company, sole proprietor, Individual and partnership firm can apply for income tax return.
This article has been contributed by Simran Setia, Content Writer, LegalRaasta- an online platform for income tax return filing, TDS return filing, GST registration, llp registration etc.