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Tax Services and Scrutiny Notices

Personal income tax filing

Its is mandatory for individuals, NRIs, partnership firms, LLPs, companies and Trust to file income tax returns each year. Individuals and NRIs are required to file income tax return, if their income exceeds Rs.2.5 lakhs per annum. Proprietorship firms and partnership firms are required income tax return - irrespective of amount of income or loss. All companies and LLPs are mandatorily required to file income tax return, irrespective of turnover or profit.

Business Tax Return Filing

All businesses operating in India are required to file an income tax return each year. In addition to filing an income tax return, a business may also be required to file a TDS return and pay advance tax to stay compliant under the Income Tax Act. 

ITR 1 Filing Form

The Income Tax Department has categorised the taxpayers into groups to ease the tax compliance process; this categorization is done based on the taxpayer's income and the sources of that income. ITR-1 return filing in India is for people with an income of up to Rs. 50 lakh.

This article is a comprehensive guide to understanding the ITR-1 Sahaj Form. Each category of the taxpayer has to compute the taxable income as it is laid down in the Income Tax Act of 1961. After computation, it is necessary for the taxpayer to file the income tax returns.

ITR-2 Form Filing

The ITR-2 form is an important income tax return form that is used by Indian citizens as well as NRIs to file their returns with the Income Tax Department of India. The taxpayers who are not eligible to file ITR 1 can file ITR 2 to file their income tax returns. Individuals and Hindu undivided families who have income for the fiscal year from salary, pension, more than one property, capital gains, foreign assets, business, income from a profession as a partner, and other sources such as lottery, racehorses, and legal gambling can file ITR 2. 

ITR 3 Form Filing

The ITR-3 form is applicable to individuals and Hindu undivided families that earn profit and gains from business or profession.

If the individual or the Hindu undivided family has an income as a partner of a partnership firm that is carrying on business, then an ITR-3 cannot be filed, as in such cases the individual is required to file an ITR-2.

ITR-4 Form Filing

Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Sections 44D, 44DA, and 44AE of the Income Tax Act of 1961. But this is subject to the business turnover limit, i.e., if the turnover exceeds Rs. 2 crore, the taxpayer is required to file an ITR-3 form.

ITR-5 Form Filing

The taxpayers are supposed to file income tax returns based on the income that they earned in the financial year and the kind of entity that it fell under. ITR-5 form filing is to be done by the Association of Persons, Limited Liability Partnerships, Body of Individuals, Estates of the Deceased, Artificial Judicial Person, Business Trust, Estates of the Insolvent, Business Trust, and Investment Fund.

ITR 7 Form Filing

The ITR-7 form is filed by the companies that service the income from properties that are used for charitable or religious purposes. Properties that are held under trusts or legal obligations in part or even wholly are included in the category.

ITR taxpayers can fill out the ITR 7 Form by providing the returns through a bar-coded form, physical paperback forms, the digital signature mode, or the submission of return verification through ITR Form V.

The ITR-7 Form is a file when the person and the company fall under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D).

ITR 6 Form Filing

The ITR-6 form is to be furnished by the companies to e-file the income tax returns if they are not claiming exemption under Section 11 of the Income Tax Act 1961. Under the Income-tax Rules, the companies that can claim an exemption under Section 11 are those that have income from property that is held for a charitable or religious purpose. Hence, ITR 6 is to be filed by the companies that do not claim an exemption under Section 11.

Form 16 Issuance to Employees

Form 16 is a certificate that employers issue to their employees. It is a validation that the TDS has been deducted and deposited with the government authorities on behalf of the employee of the organization.

Form 16 gives a detailed summary of the salary paid to the employees and the deducted TDS. TDS Form 16 contains all the information that an individual needs to prepare and file the income tax return.

The employers are required to issue a salary TDS certificate every year on or before the 15th of June of the coming year, immediately after the financial year in which the tax is deducted. There are two components to Form 16: Part A and Part B. If an individual loses Form 16, he can request a duplicate from the employer.

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