During the final 3-4 months the government has created considerable alterations in the taxation structure, introduced a handful of new types and a handful of new measures. Fundamentally, these alterations are brought to make the taxation technique automate, independent and to interlink other fiscal systems with which the other connected monetary data can be accumulated for superior monetary evaluation.
To aid taxpayers and make the ITR filing expertise smooth, the Income Tax Department has issued revised guidelines for filing ITR types for A.Y. 2020-21.
Below are the kind-sensible guidelines issued by the Income Tax Department to fill the ITRs:
ITR-2
Eligibility – For an Individual or HUF not eligible to file ITR-1 and not obtaining revenue from small business or profession.
ITR-3
Eligibility – For an Individual or HUF not eligible to file ITR-1, ITR2 or ITR-4 and obtaining revenue from small business or profession.
Manner of filing– In case of an assessee whose accounts are liable to be audited below section 44AB, it is mandatory to file the digitally signed return. In case of an assessee who is necessary to furnish audit report below sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E, 115JB or 115JC, such report to be furnished electronically on or ahead of the date of filing ITR.
ITR-5
Eligibility– This kind can be employed by particular person becoming a – Firm, LLP, Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP), Local authority, Co-operative Society, Society registered below Societies Registration Act, 1860, Trust other than trusts eligible to File ITR-7, Estate of deceased particular person, Estate of insolvent, Business trust, Investment fund.
A particular person who is necessary to file ITR u/s 139(4A) or 139(4B) or 139(4C) or 139(4D) can’t file ITR-5.
Manner of filing – In case of an assessee whose accounts are liable to be audited below section 44AB, it is mandatory to file the digitally signed return. In case of an assessee who is necessary to furnish audit report below sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA(1), 80LA(1A), 92E, 115JB or 115JC, such report to be furnished electronically on or ahead of the date of filing ITR.
ITR-6
Eligibility– This ITR kind can be employed by businesses as per section 2(17) of the Income Tax Act. This kind is filed by businesses other than businesses necessary to file return in Form ITR-7.
As per section 2(17) of the Income Tax Act, firm signifies Indian Company, Body corporate incorporated by or below the laws of nation outdoors India, Any institution, association or body, no matter if incorporated or not and no matter if Indian or Non-Indian which is declared by basic or unique order of the board to be firm and so forth.
Manner of filing and verification – Return kind can be filed electronically on the e-filing portal i.e. www.incometaxindiaefiling.gov.in and can be verified by way of a Digital signature only.
ITR-7
Eligibility– This return kind can be employed by persons like businesses necessary to furnish return below section 139(4A), 139(4B), 139(4C) or 139(4D).
Category of persons whose revenue is exempt u/s 10 and who are not mandatorily necessary to file ITR might use this kind for filing return such as – Local authority u/s 10(20), Regimental fund or Non-public fund established by the Armed forces of the Union u/s 10(23AA), and so forth.
Manner of filing – A political celebration shall compulsorily furnish the return by making use of Digital Signature. In case of an assessee who is necessary to furnish audit report below sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23)(by means of), 12A(1)(b), 92E such report to be furnished electronically on or ahead of the date of filing ITR. Audit report in Form 10B/10BB has to be e-filed at least 1 month prior to the due date of filing ITR u/s 139.
Some popular guidelines to fill up all the ITR types (ITR 2, 3, 5 and 7) are as follows:
Assessment year
This return kind is applicable for A.Y. 2020-21 i.e. revenue earned in the F.Y. 2019-20
Manner of filing and verification
Return kind can be filed electronically on the e-filing portal i.e. www.incometaxindiaefiling.gov.in and can be verified making use of any of these techniques Digital signature or By way of Electronic verification code (EVC) or Aadhaar OTP or By sending the signed copy of ITR-V by means of post at CPC Bangalore Address (ought to attain inside 120 days of filing of ITR kind).
Obligation to file ITR (applicable for ITR 2 and 3)
Every Individual/HUF whose total revenue ahead of permitting deductions below Chapter VI-A exceeds the standard exemption limit is mandatory necessary to file ITR.
Basic exemption limit for A.Y. 2020-21 for:
- Resident Individual obtaining age of 60 years or more but significantly less than 80 years at any time throughout the prior year is Rs 3,00,000
- For Resident Individual obtaining age of 80 years or more at any time throughout the prior year is Rs 5,00,000
- Any other Individual or HUF is Rs 2,50,000
Exception to above: (applicable for ITR 2 and 3)
If a particular person whose total revenue ahead of permitting deductions below Chapter VI-A or deduction of capital gains (54 to 54GB) does not exceed the standard exemption limit but who fulfills any a single of the following situations is mandatory necessary to file ITR as per seventh proviso to section 139(1):
- Deposit of quantity in existing accounts exceeds Rs 1 crore throughout the prior year
- Expenditure on travel to foreign nation for himself or any other particular person exceeds Rs 2 lakh throughout the prior year
- Expenditure on consumption of electrical energy exceeds Rs 1 lakh throughout the prior year.
(By Kapil Rana, Founder & Chairman, HostBooks Ltd)