Again, it is that point in time of the year when all your income for the current financial year is in and you need to file your income tax returns and tax planning in this period also gains a imperative significance. The due date to file your return of income for FY 2011-12 is 31st July 2012.
For FY 2011-12, filing of tax returns is essential if your income exceeds the following basic exemption limit -
• Individuals have taxable income exceeding Rs.180000 per annum
• Women have taxable income exceeding Rs.190000 per annum
• Senior Citizens have taxable income exceeding Rs.250000 per annum
• Businesses are compulsorily required to file their tax returns.
Further, while filing ITR the most common mistake which an assessee commits is choosing the incorrect form for filing income tax return. Various Income Tax return forms are notified by the IT department for filing income tax return.
Selecting a correct form is very essential for proper filing of income tax return.
The IT Department has released seven kinds of forms ( ITR 1, ITR 2, ITR 3, ITR 4, ITR 4S –Sugam, ITR 5, ITR 6 and ITR 7) for different categories of assesses.
ITR 1 (SAHAJ): This form can be used by Individuals who drive income from salary/pension or income from one house property (excluding where loss brought forward from previous year) or income from other sources (excluding winnings from lottery and income from horse races).
ITR 2: This form can be used by Individuals or a HUF whose total income comprises of incomes such as –
a. Income from Salary / Pension,
b. Income from House Property,
c. Income from Capital Gains,
d. Income from Other Sources,
e. Income from Winning of Lottery and
f. Income from Race Horses
Moreover, if the income of spouse, minor child, etc. is to be clubbed with the income of the assessee, then ITR 2 can be used if such income falls in any of the above categories.
ITR 3: Can be used by Individual/ HUF who is a partner in a firm and income is chargeable to income-tax under the head “Profits or Gains of Business or Profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm.
ITR 4: This form is used by an Individual or HUF, carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme.
Moreover, every Partnership firms, Individuals & HUF having their tax audits compulsorily under section 44AB is required to file their ITR-4 electronically using digital signature.
ITR 4S (SUGAM): For presumptive Business Income an assessee needs to file his return using this Form.
ITR 5: For Partnership Firms and others not being an individual or a Hindu undivided family or a company or a person to which ITR – 7 applies and is applicable for all sources of Incomes.
ITR 6: This form is used by Companies other than companies claiming exemption under section 11.
ITR 7: This Form can be used by persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D) of Income Tax Act.
Thus, before filing the online tax returns it is obligatory in part of the assessee to prefer the accurate ITR Form based on their income. As the wrong assortment of the ITR Form may raise the probability of Rejection of the ITR by the department or delay in processing of ITR.
Join us in pursuit of simplifying individual taxation! We welcome you to Taxmantra.com for easy online tax return filing / income tax return filing!
This article has been taken from http://www.ideamarketers.com/?articleid=3403117&CFID=206436899&CFTOKEN=51270951
For FY 2011-12, filing of tax returns is essential if your income exceeds the following basic exemption limit -
• Individuals have taxable income exceeding Rs.180000 per annum
• Women have taxable income exceeding Rs.190000 per annum
• Senior Citizens have taxable income exceeding Rs.250000 per annum
• Businesses are compulsorily required to file their tax returns.
Further, while filing ITR the most common mistake which an assessee commits is choosing the incorrect form for filing income tax return. Various Income Tax return forms are notified by the IT department for filing income tax return.
Selecting a correct form is very essential for proper filing of income tax return.
The IT Department has released seven kinds of forms ( ITR 1, ITR 2, ITR 3, ITR 4, ITR 4S –Sugam, ITR 5, ITR 6 and ITR 7) for different categories of assesses.
ITR 1 (SAHAJ): This form can be used by Individuals who drive income from salary/pension or income from one house property (excluding where loss brought forward from previous year) or income from other sources (excluding winnings from lottery and income from horse races).
ITR 2: This form can be used by Individuals or a HUF whose total income comprises of incomes such as –
a. Income from Salary / Pension,
b. Income from House Property,
c. Income from Capital Gains,
d. Income from Other Sources,
e. Income from Winning of Lottery and
f. Income from Race Horses
Moreover, if the income of spouse, minor child, etc. is to be clubbed with the income of the assessee, then ITR 2 can be used if such income falls in any of the above categories.
ITR 3: Can be used by Individual/ HUF who is a partner in a firm and income is chargeable to income-tax under the head “Profits or Gains of Business or Profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm.
ITR 4: This form is used by an Individual or HUF, carrying out a proprietary business or profession and who are not filing Return under Presumptive Taxation Scheme.
Moreover, every Partnership firms, Individuals & HUF having their tax audits compulsorily under section 44AB is required to file their ITR-4 electronically using digital signature.
ITR 4S (SUGAM): For presumptive Business Income an assessee needs to file his return using this Form.
ITR 5: For Partnership Firms and others not being an individual or a Hindu undivided family or a company or a person to which ITR – 7 applies and is applicable for all sources of Incomes.
ITR 6: This form is used by Companies other than companies claiming exemption under section 11.
ITR 7: This Form can be used by persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D) of Income Tax Act.
Thus, before filing the online tax returns it is obligatory in part of the assessee to prefer the accurate ITR Form based on their income. As the wrong assortment of the ITR Form may raise the probability of Rejection of the ITR by the department or delay in processing of ITR.
Join us in pursuit of simplifying individual taxation! We welcome you to Taxmantra.com for easy online tax return filing / income tax return filing!
This article has been taken from http://www.ideamarketers.com/?articleid=3403117&CFID=206436899&CFTOKEN=51270951
