Filing income tax returns is mandatory for individuals, NRIs, partnership firms, LLPs, companies, and trusts in India. The due date for filing income tax returns is 31st July for individuals and 30th September for companies and taxpayers requiring tax audits. Taxpayers failing to file their income tax returns on time may be subject to penalties and interest charges.
Incorporation Process
The following are the different types of ITR forms that taxpayers need to file based on their income and status:
ITR-1: For individuals earning less than Rs.50 lakhs per annum through salary or pension and having only one house property.
ITR-2: For NRIs, directors of companies, shareholders of private companies, those with capital gains income, income from foreign sources, two or more house properties, and income exceeding Rs.50 lakhs.
ITR-3: For professionals or persons operating a proprietorship business in India.
ITR-4: For taxpayers enrolled under the presumptive taxation scheme with less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income.
ITR-5: For partnership firms, LLPs, associations, and bodies of individuals to report their income and computation of tax.
ITR-6: For companies registered in India.
ITR-7: For entities claiming exemption as charitable/religious trusts, political parties, scientific research institutions, and colleges or universities.
Documentation and Other Considerations
Tax audit is mandatory for most businesses with a turnover of more than Rs.1 crore and professionals with more than Rs.50 lakhs income.
Taxpayers enrolled under the presumptive taxation scheme with total sales or turnover exceeding Rs.2 crores need to undergo a tax audit.
Taxpayers can claim various deductions under different sections of the Income Tax Act, such as Section 80C, 80D, 80E, and 80G.
The penalty for late filing income tax returns is Rs.5000 for returns filed between 1st August and 31st December and Rs.10,000 after 31st December.
Taxpayers with taxable income exceeding Rs.2.5 lakhs per annum, proprietorship firms, and partnership firms need to file income tax returns irrespective of the amount of income or loss.
All companies and LLPs must file income tax returns regardless of turnover or profit.
provides income tax e-filing services with dedicated tax expert support. Taxpayers can upload their Form-16 and relax while the experts file their income tax returns and provide the acknowledgement within 1-2 business days.
Top Income Tax Deductions for Year by 2019
Section 80C: Deduction of up to Rs.1.5 lakhs on the amount paid or deposited in PF, PPF, LIC premium paid, National Savings Certificate, ULIP, the principal part of the repayment of housing loan, tuition fees paid for children, term deposit in the bank, deposit in Senior Citizen savings scheme, and more.
Section 80D: Deduction for payments made towards medical insurance paid by cheque under the GI scheme. Fees of up to Rs.5000 paid for preventive health checkups can also be claimed as income tax deductions under Section 80D.
Section 80EE: Additional deduction of up to Rs.1 lakh can be claimed on interest on housing loan paid through EMI by the assessee. The deduction can be availed on the first home loan, the amount of the loan does not exceed Rs.35 lakhs, and the property value does not exceed Rs.50 lakhs.
Section 80E: Deduction for repayment of interest on loan taken in respect of higher deduction. The amount of interest paid can be claimed as a deduction under Section 80E. The maximum period for which this deduction can be availed is 8 years starting from the repayment of the loan or till the entire loan is repaid, whichever is earlier.
Section 80G: Deduction on donations to certain funds, and charitable institutes within the ceiling amount of 10% of the Gross Taxable Income. The amount of deduction available would depend on the exemption enjoyed by the fund. Section 80G deduction cannot be claimed for cash donations exceeding Rs.2000.
Taxpayers can use the income tax calculator or read the article to know more about income tax deductions
Document Required:
No need
Pricing: Rs 500 Onwards
Salary + Other Incomes (ITR-1) – Rs 999/-
Businesses + Other Incomes (ITR-4) – Rs 999/-
Salary + Stock Market + Other Incomes (ITR-2) – Rs 2499/-
Salary + Stocks + F&O + Intraday + Other Incomes – Rs 2999/-