Income Tax Return (ITR) - ITR Filing

ITR Filing for Individuals

As per Section 139(1) of the income tax act, 1961, any individual earning more than Rs 2.5 lakhs and crosses this specified exemption limit is liable to pay income tax return. It is mandatory for individuals to file income tax return if they are earning from the following sources –

  • Income from salary
  • Income from pension
  • Income from house property (except any case where loss has been brought forward)
  • Income from other sources
  • Agriculture income up to Rs 5000

Form ITR 1 or SAHAJ is used for filing tax return by taxpayers whose earnings are up to Rs 50 Lakhs.

Business Tax Return Filing

Filing of business tax return depends upon the type of business you are doing – whether it is Sole Proprietorship, Partnership Firm, Private Limited Company or Limited Liability Partnership (LLP). It is mandatory for businesses to file books of accounts, if they meet any of the following conditions mentioned below –

  • If total income is more than Rs 1,20,000 or
  • If total sales, turnover or gross receipts exceeds Rs 10,00,000

As per Section 44AD and 44AE of the income tax act, Form ITR 4 is used by the businesses to file income tax return in case they opt for the presumptive income scheme.

ITR Filing for HUFs

Any HUF having income of more than Rs 50 Lakhs needs to file ITR 2 while filing income tax return. It is mandatory for individuals and HUF’s to file income tax return if they are earning from the following sources –

  • Income from salary
  • Income from pension
  • Income from house property
  • Income from other sources (except lottery winning & income from race horses)

ITR Filing for Trusts

Any trust earning income of more than Rs 25 Lakhs and crosses this specified exemption limit set by the income tax department is liable to pay income tax return. Following trusts are needed to file income tax return mandatorily to the income tax department –

  • Research association
  • News agency
  • Association or institution
  • Fund or institution
  • Mutual fund
  • Investor protection fund
  • Securitization trust
  • Trade union
  • Core settlement guarantee fund
  • University or other educational institution
  • Body or authority or board or trust or commission
  • Venture capital company or venture capital fund
  • Business trust
  • Infrastructure debt fund

Form ITR 5 or ITR 7 is used by trusts to file income tax return. ITR 5 is filed when the income earned by trust is more than the basic exemption limit whereas form ITR 7 is used when ITR is filed under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) mandatorily as per income tax act.