Income Tax Returns
Every individual having PAN and carrying out financial transaction need to file Income Tax Return for the respective year. Income Tax comes under the purview of the Central government which is the source of revenue to the government. There are two types of taxes Direct tax and Indirect Tax. Tax levied directly on the Income earned is called Direct Tax. Tax calculations are based on the Income-tax slab during the Financial Year.
Types of Income Tax Payers:
- Individuals, Hindu Undivided Family (HUF), Association of Persons(AOP), and Body of Individuals (BOI)
- Firms
- Companies
Types of Income/heads of Income:
Income from Salary:
Income earned from salary and pension is taxable under this head of income
Income from Business and Profession:
Profits earned by self-employed individuals, businesses, freelancers, or contractors & income earned by professionals like life insurance agents, chartered accountants, doctors, and lawyers who have their practice, tuition teachers are taxable under this head.
Income from Capital Gains:
Surplus Income from the sale of a capital asset such as mutual funds, shares, house property, etc is taxable under this head of Income.
Income from House Property:
Income earned from renting a house property is taxable under this head of income.
Income from Other Sources:
Income from savings bank account interest, fixed deposits, winning in lotteries is taxable under this head.
Income Tax Slabs under new tax regime:
| Slab Rates: New Regime | Tax Rate | Slab Rate : Old Regime | Tax Rate |
| 0 – 2,50,000.00 | NIL | 0 – 2,50,000.00 | NIL |
| 2,50,000.00 – 5,00,000.00 | 5% | 2,50,000.00 – 5,00,000.00 | 5% |
| 5,00,000.00 – 7,50,000.00 | 10% | 5,00,000.00 – 10,00,000.00 | 20% |
| 7,50,000.00 – 10,00,000.00 | 15% | Above 10,00,000.00 | 30% |
| 10,00,000.00 – 12,50,000.00 | 20% | ||
| 12,50,000.00 – 15,00,000.00 | 25% | ||
| Above 15,00,000.00 | 30% |
Types of ITR Forms:
1. ITR-1: Resident Individual having income less than 50 Lakh can file ITR-1 which include Salary/Pension, One House Property
2. ITR-2: This ITR can be filed in the below case :
- Income More than 50 Lakh
- Income From Capital gain
- Income From more than one House Property
- Foreign Income or Foreign Assets
3. ITR-3: This ITR can be filed in the below case :
- Income From Business and Profession
- As a Partner in a Firm
- Presumptive Income Less than 50 Lakh
4. ITR-4: This ITR can be filed in the below case :
Presumptive Income is the case:
- Salary/ Pension
- Other Source
- One House Property, Total Income less than 50 lakh
5. ITR-5: This ITR can be filed in the below case :
- Firms
- AOP – Association of Person
- LLP’s – Limited Liability Partnership
- BOI – Body of Individual
6. ITR-6: This ITR can be filed in the below case :
- Companies Not claiming Exemption under Section-11
7. ITR-7: This ITR can be filed in the below case :
- Person or Companies Under Section 139 4A, 4B, 4C and 4D
Basis the above conditions, We can prepare accounts and file respective Income Tax returns.
