What is Income Tax Filing ?

In India, every individual, NRIs, partnership firms, LLPs, Companies, Trust mandatorily required to file income tax returns in each financial year. Individuals and NRIs are required to file income tax return, if their income exceeds the exemption limit.

Other entities like Partnership firms, Companies, Limited Liability Partnerships are required income tax return - irrespective of amount of income or loss. Most of the types of trust mandatorily required to file income tax in every financial year, while some types of trusts are required to file return of income if its gross total income exceeds the exemption limit.

Income tax return form can be e-filed or manually filed. While filing Income tax returns no attachment is required whether it is filed through efiling or manually filing but all relevant documents pertaining to the income tax filing like proof of investment, TDS certificates, pay slip, rent receipt, etc.) must be retained by the taxpayer and should be readily available if demanded by tax authorities during assessment, inquiry, etc..
Compliance Advisor can help you to prepare and file returns of your business. Get a free advisory relating to return filing by scheduling an appointment with a Compliance Advisor.

ITR 1 (SAHAJ)

Income Tax Form ITR-1 (SAHAJ) is for individuals having income from salaries, one house property and other sources like interest, etc., This is the most used income tax return type.

ITR 4

Income Tax Form ITR 4 is for individuals and Hindu Undivided Families having income from a proprietary business or profession. This form is used by proprietorship firms.

ITR 5

Income Tax Form ITR 5 is used by most partnership firms as it is intended for persons other than individuals, Hindu Undivided Families, companies and person filing Form ITR-7.

ITR 7

Income Tax Form ITR 7 is used by persons, political parties, news agencies, universities and entities in receipt of income from property held under trust for charitable or religious purposes.

ITR 6

Income Tax Form ITR 6 is used by companies like one Person Company, private limited company, public limited company and other for-profit companies.

Filing of ITR is basically a legal obligation on everyone who falls under it, is required to comply with.
also helps in getting bank loans, visas, for claiming refund against excess income tax paid, as a proof of income certificate and most importantly for tax payer’s self-satisfaction. Timely Filing for Forms and Returns saves the entity form the penal provisions & prosecution.