ITR-1 or Sahaj
The form must be used by individuals who make an annual income of less than Rs.50 lakh via pension or salary and from only one house property.
ITR-2
The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties, and from foreign sources. However, the income of the individual must be more than Rs.50 lakh.
ITR-3
The form must be used by individuals who run a proprietorship or are professionals in India.
ITR-4 or Sugam
Individuals who are under the presumptive taxation scheme must use this form. In order for individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.
ITR-5
In order for association and body of individuals, Limited Liability Partnerships (LLPs), and partnership firms to report their income and tax computation, this form must be used.
ITR-6
Companies that are registered in India must use this form.
ITR-7
In case entities are claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.
it is mandatory for one to file income tax returns in India, if he comes under any of the following conditions:
Individuals who fall within the respective tax slabs.
If it's a Company or Firm, irrespective of the profit or loss made in a financial year.
If a tax refund needs to be claimed.
If a loss under a head of income needs to be carried forward.
If being a resident of India, one has an asset or financial interest in any entity located outside India.
If being a resident of India, one is a signing authority in a foreign account.
If one receives income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
If one is applying for a loan or a visa.
If an NRI derives any or all of his/her income through sources in India, that income is liable to be taxable in India, and income tax returns for the same will be necessary.
Interest: If you submit your return after the deadline, you will be liable to pay interest at a rate of 1% per month or part month on the unpaid tax amount as per Section 234A.
Late fee: In case of late filing, Section 234F imposes a late fee of Rs.5,000, which shall be reduced to Rs.1,000 if your total income is below Rs.5 lakh.
| Due Date | Nature Of compliance | Tax to be paid |
|---|---|---|
| 15th June 2023 | 1st Installment | 15% of Tax liability |
| 15th september 2023 | 2nd Installment | 45% of tax liability |
| 15th december 2023 | 3rd" Installment | 75% of tax liability |
| 15th March 2024 | 4th installment | 100% of liability |
| 15th March 2024 | Presumptive Scheme | 100% of liability |
It is the examination and inspection of an entity’s books of accounts to ensure compliance with the Income Tax Act, 1961. Only certain types of assesses need to get their tax audit done by a CA or a firm of CAs.
Any business with an annual turnover exceeding 1 crore and any professional with receipts above Rs 50 lakh has to get their tax audit done.
Tax auditor shall furnish his report in a prescribed form which could be either Form 3CA or Form 3CB where:
Form No. 3CA is furnished when a person carrying on business or profession is already mandated to get his accounts audited under any other law.
