D. ITR 3

ITR 3 is designed for individuals and Hindu Undivided Families (HUFs) who have income from a proprietary business or profession. Here are the detailed eligibility criteria for filing ITR 3:

Eligible Entities for ITR 3:

1. Individuals:

• Individuals who carry on a business or profession as a proprietor.
• Individuals who have income from the following sources:
• Proprietary business or profession.
• Income from salary or pension.
• Income from house property.
• Income from other sources (such as interest income, dividend income, etc.).
• Income from capital gains.
• Income from foreign assets.

2. Hindu Undivided Families (HUFs):

• HUFs who have income from a proprietary business or profession.

Sources of Income Reported in ITR 3:

1. Income from Business or Profession:

• Income earned from running a business or practicing a profession.

2. Income from Salary or Pension:

• Income earned as salary from employment or pension from previous employment.

3. Income from House Property:

• Rental income from house property or deemed to be let-out property.

4. Income from Capital Gains:

• Short-term and long-term capital gains from the sale of property, securities, etc.

5. Income from Other Sources:

• Interest income, dividend income, winnings from lotteries, racehorses, etc.

6. Income from Foreign Assets:

• Income from assets located outside India.

Who Cannot File ITR 3:

1. Individuals and HUFs with Presumptive Income:

• Individuals and HUFs who opt for the presumptive income scheme under Sections 44AD, 44ADA, or 44AE should file ITR 4 instead of ITR 3.

2. Companies and Firms:

• Companies and firms cannot use ITR 3; they have their respective forms like ITR 5 and ITR 6.

Required Documents and Information for ITR 3:

1. Basic Information:

• PAN card.
• Aadhaar card.
• Bank account details.

2. Income Proofs:

• Salary slips and Form 16 (for salary income).
• Rent receipts, lease agreement, and details of municipal taxes paid (for income from house property).
• Details of sales, purchases, and expenses related to the business or profession.
• Capital gains statements from brokers or relevant documentation for the sale of property/assets.
• Interest certificates, dividend receipts, and other income proofs.

3. Financial Statements:

• Balance sheet.
• Profit and loss statement.
• Trial balance (if maintaining detailed accounts).

4. Tax Payment Details:

• Challan receipts for advance tax and self-assessment tax payments.
• TDS certificates (Form 16A, Form 26AS).

5. Investment Proofs:

• Receipts or statements for investments made under various sections for claiming deductions (e.g., Section 80C, 80D).

6. Audit Reports:

• Audit report under Section 44AB, if applicable.

Filing ITR 3:

• Electronic Submission: ITR 3 must be filed online on the Income Tax Department’s e-filing portal.
• Digital Signature: It can be filed using a digital signature or EVC (Electronic Verification Code) as applicable.

Due Date for ITR 3:

• July 31st: For individuals and HUFs whose accounts are not required to be audited.
• October 31st: For individuals and HUFs whose accounts are required to be audited.

These dates are subject to extensions or changes announced by the Income Tax Department. Always check for official notifications to stay updated.

E. ITR 4

Income Tax Return (ITR) 4 is designed for individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships) who are residents and have income from a presumptive business or profession under sections 44AD, 44ADA, or 44AE of the Income Tax Act. Here are the eligibility criteria for filing ITR 4:

1. Individuals and HUFs:

• Resident individuals and HUFs having income from a business or profession which is computed on a presumptive basis under sections 44AD, 44ADA, or 44AE.
• This includes small businesses with a turnover of up to ₹2 crore (for section 44AD), professionals with gross receipts of up to ₹50 lakh (for section 44ADA), and those engaged in the business of plying, hiring, or leasing goods carriages (for section 44AE).

2. Firms (other than LLPs):

• Resident firms (excluding Limited Liability Partnerships) having income from a presumptive business as mentioned above.

Income Sources Included in ITR 4

• Presumptive Income from Business and Profession:
• Income from business as per the presumptive income scheme under section 44AD.
• Income from professions as per the presumptive income scheme under section 44ADA.
• Income from business of plying, hiring, or leasing goods carriages under section 44AE.

Other Sources of Income:

• Salary or pension.
• Income from one house property (excluding cases where loss is brought forward from previous years).
• Income from other sources (excluding winning from lottery and income from race horses).

Who Cannot File ITR 4?

1. Individuals or HUFs who have income from:

• More than one house property.
• Winning from lotteries or income from race horses.
• Capital gains.
• Agricultural income exceeding ₹5,000.
• Income from speculative business and other special incomes.
• Income from a profession or business not eligible for presumptive taxation under sections 44AD, 44ADA, or 44AE.

2. Non-residents.
3. Directors in a company.
4. Individuals having income from any source outside India.

Key Points to Note

• Presumptive Taxation Scheme:
• Under section 44AD, 8% (or 6% if receipts are through digital means) of total turnover or gross receipts is deemed as income.
• Under section 44ADA, 50% of gross receipts is deemed as income for professionals.
• Under section 44AE, income is calculated at a fixed rate per vehicle.

Maintenance of Books and Audit:

• Taxpayers opting for presumptive taxation are exempt from maintaining books of account and audit under section 44AB.

Filing ITR 4 can simplify tax compliance for small businesses and professionals by reducing the complexity involved in maintaining detailed books of accounts and undergoing audits.

Required Documents and Information for ITR 4:

Filing ITR 4 requires certain documents and information to ensure accurate and complete reporting of income and other details. Here is a list of the essential documents and information needed for filing ITR 4:

Basic Documents

1. PAN Card:

• Permanent Account Number (PAN) is mandatory for filing the income tax return.

2. Aadhaar Card:

• Aadhaar number is mandatory for e-filing ITR.

3. Bank Account Details:

• Details of all bank accounts held in the previous financial year including bank name, account number, and IFSC code.

Income-Related Documents

1. Presumptive Income Calculation:

• Details of turnover/gross receipts from business or profession for computing income under presumptive taxation schemes (sections 44AD, 44ADA, and 44AE).

2. Form 16:

• If you have income from salary, Form 16 issued by the employer.

3. Form 16A:

• For TDS on income other than salary, such as interest income, rent, etc.

4. Form 26AS:

• Tax Credit Statement available on the income tax e-filing website showing details of tax deducted at source (TDS), advance tax, and self-assessment tax paid.

5. Income from House Property:

• Details of rent received, municipal taxes paid, and interest on home loan, if any.

Expense-Related Documents

1. Receipts for Business Expenses:

• Receipts and invoices of business-related expenses for accurate income calculation, although detailed accounting is not mandatory under presumptive taxation.

2. Profession-Related Expenses:

• Receipts for expenses related to professional services.

Investment-Related Documents:

1. Interest Certificates from Banks and Post Office:

• For interest earned on savings accounts, fixed deposits, and other investments.

2. Proof of Investments:

• Receipts or statements for investments made under Section 80C, 80D, 80G, etc., for claiming deductions.

3. Insurance Premium Payment Receipts:

• Receipts for premiums paid towards health insurance (Section 80D) or life insurance (Section 80C).

Other Documents

1. Books of Accounts and Financial Statements (if applicable):

• Although not mandatory under presumptive taxation, it is advisable to keep records of sales, purchases, and expenses.

2. Details of Advance Tax and Self-Assessment Tax Payments:

• Challan receipts for any advance tax or self-assessment tax paid during the financial year.

3. Details of Other Incomes:

• Details of any other income not covered under presumptive income, such as income from other sources.

Additional Information

1. GST Number and Turnover Details:

• If registered under GST, details of GST number and turnover reported in GST returns.

2. IFSC Code of Bank for Refund:

• Ensure to have the correct IFSC code of the bank account where you want your refund to be credited.

By keeping these documents and information ready, you can ensure a smooth and accurate filing process for ITR 4.

Due Date for ITR 4:

The due date for filing ITR 4 for individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships) is generally July 31st of the assessment year.

However, it’s important to note that the due date may be extended by the government. Taxpayers should stay updated with any announcements from the Income Tax Department regarding extensions or changes to the due date.

F. ITR 5

Income Tax Return (ITR) 5 is meant for entities that do not fall under the category of individual, HUF, company, or persons filing ITR 7. Here’s a detailed look at who is eligible to file ITR 5:

Eligible Entities for ITR 5:

1. Firms:

• Partnerships firms including Limited Liability Partnerships (LLPs).

2. Association of Persons (AOP)

• Groups of persons formed for a common purpose that generate income.

3. Body of Individuals (BOI)

• Groups of individuals who come together for a particular purpose and earn income.

4. Artificial Juridical Persons (AJP)

• Entities recognized by law as having legal rights and duties, such as deities or temples.

5. Estate of Deceased Person

• Income earned on behalf of a deceased person’s estate.

6. Estate of Insolvent Person

• Income earned by the estate of an insolvent individual.

7. Business Trusts

• Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

8. Investment Funds

• Category I and Category II Alternative Investment Funds (AIFs).

9. Societies and Cooperative Societies

• Societies registered under the Societies Registration Act and cooperative societies registered under the Cooperative Societies Act.

Who Cannot File ITR 5:

1. Individuals
2. Hindu Undivided Families (HUFs)
3. Companies
4. Persons required to file ITR 7

• Entities like trusts, political parties, institutions claiming exemption under section 11, section 12, etc., which need to file under ITR 7.

Key Income Sources Reported in ITR 5:

• Income from business or profession.
• Income from house property.
• Capital gains.
• Income from other sources.
• Income from foreign assets.

Required Documents and Information for ITR 5:

1. Basic Documents:

• PAN card.
• Aadhaar card of partners or members, if applicable.
• Details of all bank accounts.

2. Financial Statements:

• Balance sheet.
• Profit and loss statement.
• Audit reports, if applicable.

3. Tax Payment Details:

• Challan receipts for advance tax and self-assessment tax payments.
• TDS certificates (Form 16A, Form 26AS).

4. Details of Other Income:

• Documents for income from house property, capital gains, etc.
• Interest certificates from banks and other financial institutions.

5. Investment Proofs:

• Receipts or statements for investments made under various sections for claiming deductions (e.g., Section 80C, 80D).

6. GST Details:

• GST registration number and details of turnover, if applicable.

7. Partner’s Details (for Firms/LLPs):

• Names, addresses, and share of profit/loss.

8. Audit Reports:

• Audit reports under section 44AB or any other section if applicable.

9. Other Specific Documents:

• Specific documents depending on the nature of the entity and income sources.

Filing ITR 5 requires careful compilation of financial and tax-related documents to ensure compliance and accurate reporting of income and deductions.

Due Date for ITR 5:

The due date for filing ITR 5 for entities such as firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), and others is July 31st of the assessment year if the accounts are not required to be audited.

However, if the accounts are required to be audited under any law, the due date is October 31st of the assessment year.

These dates are subject to extensions or changes announced by the Income Tax Department, so it is advisable to stay updated with any official notifications.

G. ITR 6

ITR 6 is specifically designed for companies, excluding those claiming exemption under Section 11 of the Income Tax Act. Here are the details regarding eligibility for filing ITR 6:

Eligible Entities for ITR 6:

1. 1. Companies

   – All companies registered under the Companies Act, whether they are public or private, and whether they are domestic or foreign, are required to file ITR 6 if they do not claim exemptions under Section 11.

Who Cannot File ITR 6:

1. 1. Companies Claiming Exemption under Section 11

   – Companies that claim income exemptions under Section 11 of the Income Tax Act, which applies to income from property held for charitable or religious purposes, are not eligible to file ITR 6. These companies should file ITR 7.

Key Points:

– Section 11 Exemption: This section provides exemption for income derived from property held under trust or other legal obligation for charitable or religious purposes.

– Electronic Filing: ITR 6 must be filed electronically under digital signature.

Required Documents and Information for ITR 6:

1. 1. Basic Company Information:

   – PAN card of the company.

   – Certificate of Incorporation.

   – Details of all directors (PAN, Aadhaar, etc.).

1. 2. Financial Statements:

   – Balance sheet.

   – Profit and loss statement.

   – Audit report under Section 44AB, if applicable.

1. 3. Tax Payment Details:

   – Challan receipts for advance tax, self-assessment tax payments.

   – TDS certificates (Form 16A, Form 26AS).

1. 4. Details of Other Income:

   – Documents related to income from house property, capital gains, etc.

   – Interest certificates from banks and other financial institutions.

1. 5. Investment Proofs:

   – Receipts or statements for investments made under various sections for claiming deductions (e.g., Section 80G for donations).

1. 6. GST Details:

   – GST registration number and details of turnover, if applicable.

1. 7. Other Specific Documents:

   – Any other documents specific to the company’s income and deductions.

Filing ITR 6:

– Digital Signature: Filing must be done using a digital signature.

– Electronic Submission: ITR 6 is to be filed online on the Income Tax Department’s e-filing portal.

By keeping these documents and information ready, companies can ensure accurate and timely filing of ITR 6.

Due Date for ITR 6:

The due date for filing ITR 6 for companies is generally October 31st of the assessment year. This applies to all companies that do not claim exemptions under Section 11 of the Income Tax Act.

It’s important to stay updated with any official announcements from the Income Tax Department, as the due date may be extended or modified.

H. ITR 7

ITR 7 is specifically designed for entities that are required to furnish their return of income under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. Here is a detailed look at the eligibility criteria for filing ITR 7:

Eligible Entities for ITR 7:

1. Entities Claiming Exemption under Section 11:

• Entities whose income is derived from property held under trust or other legal obligation for charitable or religious purposes, and who claim exemptions under Section 11.

2. Entities Claiming Exemption under Section 10:

• Entities that claim income exemptions under specific clauses of Section 10, such as educational institutions, medical institutions, or entities involved in scientific research.

3. Political Parties:

• Political parties whose income is exempt under Section 13A.

4. Scientific Research Associations:

• Scientific research associations claiming exemption under Section 10(21).

5. News Agencies:

• News agencies claiming exemption under Section 10(22B).

6. Institutions/Universities/Colleges:

• Institutions such as universities and colleges whose income is exempt under Section 10(23C).

7. Trade Unions:

• Trade unions whose income is exempt under Section 10(24).

8. Religious or Charitable Trusts:

• Trusts or institutions established wholly for public religious or charitable purposes.

9. Electoral Trusts:

• Electoral trusts claiming exemption under Section 13B.

Who Cannot File ITR 7:

1. Individuals, HUFs, and Companies:

• Individuals, Hindu Undivided Families (HUFs), and companies that do not fall under the aforementioned categories.

Required Documents and Information for ITR 7:

1. Basic Entity Information:

• PAN card.
• Registration certificate of the trust or institution.
• Details of trustees or managing persons.

2. Financial Statements:

• Balance sheet.
• Income and expenditure account.
• Audit report under Section 12A(b), if applicable.

3. Tax Payment Details:

• Challan receipts for advance tax and self-assessment tax payments.
• TDS certificates (Form 16A, Form 26AS).

4. Details of Income and Expenditure:

• Documents related to income from voluntary contributions, grants, donations, etc.
• Receipts or statements for expenses incurred.

5. Investment Proofs:

• Details of investments made under various sections for claiming deductions.

6. Details of Specific Income:

• Documents related to income from property held under trust or other sources specific to the entity.

Filing ITR 7:

• Electronic Submission: ITR 7 must be filed online on the Income Tax Department’s e-filing portal.
• Digital Signature: It can be filed using a digital signature or EVC (Electronic Verification Code) as applicable.

Due Date for ITR 7:

The due date for filing ITR 7 is generally October 31st of the assessment year.

This due date may be subject to extensions or changes as announced by the Income Tax Department. Always stay updated with official notifications to ensure timely filing.