Rules for Filing of Income Tax Returns by Individuals For
Assessment Year 2015-16 (Financial Year 2014-15)
by
Rajesh Goyal
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(A) Who is Required to File Income Tax Return or When an Individual Has To File
Income Tax Return :
In terms of Income Tax laws, in case you are an individual (other than a company
or a firm) than you will have to file your return if your Gross Total Income
before any deductions is more than the exemption limit. [Deductions in this
case will be the usual 80C to 80U deductions]. Thus, in simple terms we can say
if your gross Total income is more that Rs.2,50,000 in FY 2014-15, you should
file your income tax return by 31st August 2015. [Remember, this
limit will be Rs3,00,000/- for individuals who have reached 60 years of age
during the Financial Year or earlier. Similarly, for very senior citizens this
limit will be Rs5,00,000/- (those who are 80
years and above).
In addition to above, sometimes an individual is required or he / she prefers
to file an income tax return. We are giving below some of such instances :-
Sometimes some banks or other organization may have deducted TDS on some
income, as the individual failed to provide the details that he / she is not
liable for any tax as his / her income is less than the taxable limit. In
such situations, if the individual wants to claim the TDS as income tax
refund, he / she has to file income tax and claim refund.
Similarly, in case the individual wishes to carry forward a loss under a
head of income, though the gross income is less than the exemption limit,
the individual has to file income tax return.
Return filing is mandatory for those who are Resident individual but have an
asset or financial interest in an entity located outside of India. (Not
applicable to NRIs or RNORs).
Or if you are a Resident and a signing authority in a foreign account. (Not
applicable to NRIs or RNORs).
Some times individuals prefer to file income tax return with taxabibility as
Rs zero, as it provides them as a proof of filing the tax as this is
required at the time of applying for a loan or a visa.
(B) Are NRIs also required to file income tax return :
Yes all individuals, including NRIs whose income exceeds Rs.2,50,000 (for FY
ending 31st March 2015) are required to file an income tax return in India.
However, for NRIs income earned or accrued in India is only taxable in India.
(C ) Who are required to
mandatory e-file income tax return?
Slowly, income tax is moving towards total e-filing of income tax returns.
However, at present in the following cases e-filing of income tax return is
compulsory :
(a)Your gross total income is more than Rs 5,00,000 OR
(b)You have a claim to refund (However, those who are over 80 years old and are
filing ITR-1 or ITR-2 can still file a paper return to claim a refund)
(c)In case you are required to file ITR-3, 4, 5, 6, 7
(D) What is amount of Penalty for non-filing an income tax return?
As per section 271F, the assessing officer can levy a penalty of Rs 5,000 in
case you have failed to file your return by due date.
(E) Types of Various IT Return Forms for FY 2014-15 (Assessment Year
2015-16)
From No
Who
Should File This Return Form
Who CAN
NOT File This Return Form
Remarks
ITR-1 SAHAJ
This Return Form
CAN be used by
an individual whose total income for the assessment year 2015-16
includes:-
Income from Salary/ Pension; or
Income from One House Property (excluding cases where loss is
brought forward from previous years); or
Income from Other Sources (excluding Winning from Lottery and Income
from Race Horses)
We
can also this that this Return Form CANNOT be used by
an individual whose total income for the assessment year 2015-16
includes:-
Income from more than one house property; or
Income from Winnings from lottery or income from Race horses; or
Income under the head "Capital Gains' e.g., short-term capital gains
or long-term capital gains from sale of house, plot, shares etc.; or
Agricultural income in excess of Rs. 5,000; or
Income from Business or Profession; or (Loss under the head 'Income
from other sources'; or
Person claiming relief under section 90 and/or91; or
Any resident having any asset (including financial interest in any
entity) located outside India or signing authority in any account
located outside India or
Any resident having income from any source outside India
ITR - 2
This Return Form
CAN be used by
an individual or a Hindu Undivided Family whose total income for the
assessment year 2015-16 includes:-
Income from Salary / Pension; or
Income from House Property; or
Income from Capital Gains; or
Income from Other Sources (including Winning from Lottery and Income
from Race Horses).
Further, in a case where the income of another person like spouse, minor
child, etc. is to be clubbed with the income of the assessee, this
Return Form can be used where such income falls in any of the above
categories.
This Return Form
CANNOT be used by an
individual or a Hindu Undivided Family whose total income for the
assessment year 2015-16 includes Income from Business or Profession.
ITR - 2A
This Return Form
CAN be used by
an individual or a Hindu Undivided Family whose total income for the
assessment year 2015-16 includes:-
Income from Salary / Pension; or
Income from House Property; or
Income from Other Sources (including Winning from Lottery and Income
from Race Horses).
Further, in a case where the income of another person like spouse, minor
child, etc. is to be clubbed with the income of the assessee, this
Return Form can be used where such income falls in any of the above
categories.
This form should not be used by an individual or HUF whose income
includes income from Business or Profession.
This Return Form
CANNOT be used
by
an individual or a Hindu Undivided Family whose total income for the
assessment year 2015-16 includes:-
Income from Capital Gains; or
Income from Business or Profession; or
Any claim of relief/deduction under section 90, 90A or 91; or
Any resident having any asset (including financial interest in any
entity) located outside India or signing authority in any account
located outside India; or
Any resident having income from any source outside India.
ITR - 3
For Individuals/HUFs being partners in firms and not carrying out
business or profession under any proprietor-ship
ITR-4S
SUGAM
This Return Form CAN be used by
an individual/ HUF whose total income for the assessment year 2015 -16
includes:-
Business income where such income is computed in accordance with
special provisions referred to in section 44AD and 44AE of the Act
for computation of business income; or
Income from Salary/ Pension; or
Income from One House Property (excluding cases where loss is
brought forward from previous years); or
Income from Other Sources (Excluding winning from lottery and Income
from Race Horses).
Note:
The income computed shall be presumed to have been computed after giving
full effect to every loss, allowance, depreciation or deduction under
the Income-tax Act. Note: Further, in a case where the income of
another person like spouse, minor child, etc. is to be clubbed with the
income of the assessee, this Return Form can be used only if the income
being clubbed falls into the above income categories.
This Return Form CANNOT be used by
to file return for the following incomes
Income from more than one house property; or
Income from winnings from lottery or income from Race horses; or
Income under the head 'Capital Gains', e.g. Short-term capital gains
or long-term capital gains from sale of house, plot, shares etc. or
Agricultural income in excess of Rs. 5,00 i 0; ,
Income from Speculative Business and other special incomes; or
Income from a profession as referred to in sub-section (1) of
section 44AA or income from an agency business or income in the
nature of commission for brokerage; or
Person claiming relief of foreign tax paid under section 90, 90A
or91; or
Any resident having any asset (including financial interest in any
entity) located outside India or signing authority in any account
located outside India or
Any resident having income from any source outside India
This form is to be printed as per the Print Specifications of Income Tax
Deptt.
ITR - 4
For Individuals and HUFs having income from a proprietory business or
profession
ITR - 5
For Firms, Co-operative Banks, Co-operative Societies, Limited Liability
Partnerships (LLP), Association of Persons (AOP), Body of Individuals
(BOI) and Artificial Judicial Persons
ITR - 6
For Companies other than companies claiming exemption under section 11
ITR - 7
For persons including companies required to furnish return under section
139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
ITR - V
Acknowledgement Form for all
ITR Forms except ITR 7
Some Quick Revision of Important Points Relating to Filing of Income Tax Return
Filing of Return of Income (ROI)
A Return of Income has to be filed in the following cases:-
·Every Company and partnership firm has
compulsory to file a Return,
whether Income or loss.
·Any other person whose Gross Total Income is exceeding the exemption limit
(250000/300000/500000) has to file ROI.
E.g. Mr. Rohit has Gross total income of Rs. 275000 and deduction u/s 80C is Rs.
125000, in this case, his tax liability shall be NIL, but he shall be required
to file ROI.
·If any person is assessable on behalf of any other person and such other person
income is exceeds Exemption limit, in that case also ROI has to be submitted.
E.g. Mr. Aman, a minor son of Mr. Raghu is a child actor and has income of Rs.
400000 in previous year 2014-15; in this case, Mr. Raghu is required to file ROI.
·Every Charitable trust having Total Income more than the exemption limit shall
be required to file ROI.
E.g. Social Charitable Trust has income u/h Other sources Rs. 400000 and u/h
House Property Rs. 800000, in this case trust shall be exempt from payment of
Tax. But trust shall be required to file ROI and also audit is required.
* In case of charitable trust, audit is required if the Total income is
exceeding Rs. 250000.
·Every Political Party having Total Income more than/exceeding exemption limit,
shall be required to file ROI and also audit is required.
·Organisation like Trade union or news agency or local authority or research
association having their income exempt from income tax, shall be required to
file ROI and also audit is required if income is exceeding the exemption limit.
·Last Date of Filing of ROI
§Company assessee and other assessee where audit is required –
3oth September
of assessment year.
§Other assessee –
31st July of assessment year. (For AY
2015-16, it has been extended upto 31st August 2015)
*In case of Partnership firm, audit is required if total income is exceeding
Rs. 60lac.
Late filing of return of income u/s 139(4)
·Late filing of ROI is allowed
but maximum within one year from the end of
the relevant assessment year
·Penalty
of Rs. 5000 shall be charged after expiry of relevant previous year.
E.g. for the Previous year 2013-14, Rohit ltd. has to file ROI upto 30/9/2014
but late return can be filed upto 31/3/2016 but penalty of Rs. 5000 shall
charged after expiry of 31/3/2015.
Revised ROI u/s 139(5)
·Revision is
allowed in Filed return of income provided there is a bonafide error.
·If the Income return is filed
lately its revision is not
allowed.
·Revision is allowed
maximum within one year and any no. of
times.
Return of Loss u/s 139(3)
·Loss of Business/Profession or Capital gain shall be allowed to be
carried
forward only if the assessee has filed the Return of Loss, Return of
Loss must be filed on time, otherwise carry forward of loss not
allowed.
·Provision
not applicable with regard to loss under House
Property or Unabsorbed business depreciation.
Defective Return of Income u/s 139(9)
·A return shall be considered to be defective if all the columns of the return
have not been filled in properly.
·Assessing officer shall inform the assessee regarding the defect and a
time
period of 15 days allowed to rectify it.
·Unsigned Return
shall consider as Invalid return or Considered No ROI is filed.
Tax Return Preparer Scheme (TRP)
·Tax Return Preparer is appointed by Income tax Department and they will
authorize to file ROI on behalf of assessee.
·They
Cannot File ROI of any Non-resident or any assessee in whose
case audit is required.
·A
Chartered Accountant or an Advocate are not allowed to apply as
TRP.
·Department Pay
Commission of 3% of the Income tax amount, but maximum Rs. 1000 and also
Minimum Rs. 250.
Authorised Signatories to the Return of Income (ROI)
Assessee
Authorised Signatory
·Individual
·When absent from India or Mentally incapacitated
-Himself
-His Guardian
·HUF
·When KARTA is absent from India or Mentally incapacitated
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