ITR or Income Tax Return comes as a form used for filing income tax with the Income Tax Department of India. The tax returns must be filed in every Assessment year for a Financial Year (FY) by an individual or business that received taxable income during a financial year through regular income, dividends, interest, capital gains or any other sources. Filing tax returns is not a liability, it is a right. If the return shows that excessive tax has been paid during an FY, the taxpayer is eligible for a tax refund. A taxpayer can file the returns online through the government’s website, incometaxindiaefiling.gov.in.

According to law, ITR must be filed if your gross total income exceeds the basic exemption limit. The exemption limit changes according to the budget of the financial year. In the budget of 2018, the basic exemption limit was 2.5 lakhs for taxpayers who are below the age of 60 years and senior citizens aged 60 above but below 80 years is 3 lakhs. For taxpayers that are aged above 80, the limit is 5Lakhs for FY 2018.

As the deadline is approaching, many people are confused while filing ITR and the very first question they want to know is ‘what is taxable income?’

By using a simple definition, it could be said that taxable income is part of the taxpayer’s income for which the taxpayer has to pay tax. This is basically the gross income that comes under the income tax slab after the deduction of all exemptions and taxes.

Taxable incomes are salaries, wages, bonuses, investment incomes, alimony, government payments, etc. Keeping a track of various taxable incomes and calculating it can become quite hectic.

Decide the Right ITR Form for Yourself

When you are e-filing your returns, deciding which form to fill is a pivotal part of the process to avoid any further problem. There are 7 ITR forms available that you need to know.

1. ITR-1 SAHAJ

This form can be filed by individuals being an ordinary resident having total income up to 50lakh and having the income from salaries, one house property, other sources (interest, etc) and agricultural income up to Rs. 5 thousand.

2. ITR-2

This form is for individuals who cannot file ITR-1 like non-resident Indians who earn through salary, two or more house properties, foreign assets or income, investments in unlisted shares, company dictatorship and income is above 50lakh.

3. ITR-3

This form is applicable to individual and HUFs (Hindu Undivided Families) who possess income from profits and gains of business or profession and presumptive income in excess of 50 lakhs.

4. ITR-4 Sugam

This is for individuals, HUFs and Firms (other than LLP) being a resident having total income up to 50lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.

5. ITR-5

This is for persons other than, individual, HUF, company, a person filing Form ITR-7 which means this is applicable to non-individual income tax assesses such as Firms, Limited Liability, Association of Person(AOPs), Body of Individuals(BOIs).

6. ITR-6

It is for companies other than companies claiming an exemption under section 11 of IT Act, 1961.

7. ITR-7

This form is for persons including companies required to furnish return under sections 139(4A) OR 139(4B) OR 139(4C) or 139(4D) only.

How to E-File your ITR for AY 2019-2020?

● The first step for e-filing your income tax return is by registering on the website of the Income Tax Department of India if you are totally new to filing returns. You have to provide your basic details such as PAN number, Name, DOB. You will then receive a password and you will get your user ID for further use.

● After the completion of the registration process, click on e-file to receive the ITR option.

● Then, you have to decide the appropriate ITR form for yourself and choose AY 2019-2020.

● You will find many of the details filled automatically. You can also pick and choose the details you want or don’t want to be filled by the automation and click on the continue button.

● You will find a new page opened on your screen where you have to fill the form along with basic details, income details, section 80G, and paid taxes. Check this form thoroughly before proceeding.

● After verifying every detail, click on the ‘submit’ button and your return will be updated. Again you have to verify details.

● You have options to choose for verifications. The 3 options are Aadhar-linked One Time Password, Electronic verification Code, taking the print out of ITR-V and singing it before mailing it to CPC. This step requires 120 days of e-filing.
Deadline for Various Taxpayers for AY 2019-2020

● Deadline for individuals, HUFs, Association of persons whose accounts do not require to be audited has been extended from 31st July to 31st August for FY 2018-2019

● Deadline for persons whose accounts are required to be audited such as a company, firm, an individual or other entities, etc is September 30, 2019.

● Deadline for an assessee who has undertaken foreign transaction during FY 2018-2019 is 30th November 2019.

If you are looking forward to income tax saving, then there are some exciting options to do that.

● Choose income tax saving options under 80C, 80CCC, 80CCD of the Income Tax Act, 1961. You can deduct a maximum amount of 1,50,000 with the combination of those 3 sections by investing in popular instruments such as Equity Oriented Mutual Fund, PPF Accounts, 5 Year Tax Saving Fixed Deposit, Pension Plans, Life Insurance Policy, etc.

● Choose to save your tax under 80D, 80DD, 80DDB. Save your income tax under this section by purchasing health insurance for yourself or for your relatives, spouse or children.

● Choose income tax saving options through home loans under section 24 and education loan under section 80E.

It is imperative that you file your ITR on time and with accuracy to earn the benefits of getting back the extra tax you have paid unknowingly, compensate for your financial losses and process your loans smoothly and many more benefits.