ABOUT INCOME TAX

Under the Constitution of India Central Government is empowered to levy tax on the income. Accordingly, the Central Government has enacted the Income Tax Act, 1961. The Act provides for the scope and machinery for levy of Income Tax in India. The Act is supported by Income Tax Rules, 1961 and several other subordinate and regulations. Besides, circulars and notifications are issued by the Central Board of Direct Taxes (CBDT) and sometimes by the Ministry of Finance, Government of India dealing with various aspects of the levy of Income tax. Unless otherwise stated, references to the sections will be the reference to the sections of the Income Tax Act, 1961. Income tax is a tax on the total income of a person called the assesses of the previous year relevant to the assessment year at the rates prescribed in the relevant Finance Act. Some of the important definitions under Income Tax Act, 1961 are as follows: Income Tax Return (ITR)

What is Income Tax Return (ITR fiilling)

Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Information filed in ITR should pertain to a particular financial year, i.e. starting on 1st April and ending on 31st March of the next year.

Income can be of various forms such as :

Income from salary

Profits and gains from business and profession

Income from house property

Income from capital gains

Income from other sources such as dividend, interest on deposits, royalty income, winning on lottery, etc.

Assessment Year(A.y.)

The year in which your income is assessed is known as assessment year. The period for assessment year starts from 1st April and ends on 31st March of the next year.

In other words, it is the year immediately following the financial year i.e. the year in which you have earned your income.

For instance, for F.Y. 2017-18, the A.Y. would be from 1st April 2018 till 31st March 2019.

Type of Income tax form for filling income tax return

Particulars Applicability

ITR-1 (also called as Sahaj) To be filed by resident individuals having total income upto ₹ 50 lacs from following sources :

1. Salary

2. One house property

3. Other sources excluding winning from lotteries and income from horse races

4. Agricultural income upto ₹ 5,000

ITR-2 To be filed by Individuals and HUFs who are not eligible to file form ITR-1 and don’t have income from profits and gains from business or profession

ITR-3 To be filed by Individuals and HUFs having income from profits and gains from business or profession

ITR-4 (also called as Sugam) To be filed by resident individuals, HUFs and firms (other than LLP) who are residents having total income upto ₹ 50 lacs and having income from business or profession computed under section 44AD, 44ADA or 44AE

Individuals have to compulsorily file ITR through online mode.

Following is the due date for filing of ITR:

Particulars Due Date

Person (other than company) not covered under tax audits 31st July

Person covered under tax audits 30th September

Person who has undertaken international transactions and is liable to report under 92E 30th November