How do I file Income Tax Returns?

Simply put, Income Tax refers to the tax paid directly on the income earned, to the government, within a given financial year (April-March).

When the total income of a person from all sources of income exceeds the maximum amount permissible which is not chargeable to income-tax by the government, then that person is liable to file the Income Tax Return.

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Section 139(1) of the Income Tax Act was amended a few years back with a view to bring a larger number of persons in the tax net. Now if any person satisfies any one of the following six conditions:

• owns a vehicle
• occupies a specified floor area of an immovable property
• incurs expenditure for himself or for any other person on foreign-travel
• subscribes to a telephone
• subscribes to a Credit Card
• is a Club member
• then he/she is required to file an Income Tax Return.

The slabs to file Income Tax Returns vary, depending upon the total income earned during a year and the various exemptions for which the individual/entity is eligible for. In the case of an assessee earning income primarily from salary, the due date for filing the Income Tax Return is normally 31st July of the assessment year, unless extended by the Income Tax Department.

Individuals can file their Income Tax Returns by filling the requisite forms ITR 1, ITR 2, ITR 3, ITR 4 or ITR 4S.

The return form, along with copies of necessary supporting documents, has to be filed at the appropriate income tax office or special counters set up for this purpose, the details of which are available on the Income Tax Department website. It is also mandatory to quote the Permanent Account Number (PAN) while filing the return.

Under Electronic Furnising of Return of Income Scheme, 2004, eligible assessees can file their returns of income electronically through persons authorised to act as e-return intermediaries. The intermediaries digitises the data of such returns and transmit the same electronically to the e-filing server of the Income Tax Department under the digital signatures.

Following are the forms for filing income tax returns:

Income tax Return SAHAJ (ITR-1):  For Individuals having Income from Salary/ Pension/ family pension & Interest

Income Tax Return Form 2:  For Individuals and HUFs not having Income from Business or Profession
Income Tax Return Form 3: For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
Income Tax Return Form 4: For individuals & HUFs having income from a proprietary business or profession
Income Tax Return Form 4S: For individuals & HUFs having income from salary, other sources, house property or presumptive business.