Complete guide for efilling of Income tax return - Which itr to file for salaried person and others for A.Y 2017-2018

This year there is a small change in ITR forms.

ITR 4 which was earlier used for Assesses being Individual having any Business or Profession of their own was required to file ITR 4. Now the same has been replaced with ITR 3.

Note if your Income Tax Return under presumptive basis you will have to file ITR 4S.

So let’s get started.

So who has to file Income Tax Return / Are you actually required to file any return?

Well as far as an Individual is concerned you will have to file Income Tax Return for year ended 31^st March 2017 if you total income before deductions exceeds the taxable limit.

That is for an Individual if you Income exceeds Rs 250,000.

For a Senior Citizen (More than 60 years of age) that limit is Rs 300,000.

For a Super Senior Citizen (More than 80 years of age) that limit is Rs 500,000

Also it should be noted that if your income exceeds Rs 500,000 it is compulsory to file your income tax return online. That is you can’t file it offline if your income exceeds Rs 500,000.

Also if you are company or a partnership firm, you will compulsorily have to file your income tax return.

Needless to say if there is any sort of tds deducted on your income and you want to claim the refund then to claim it too you will have to file the return.

If you guys want to learn how to avoid deduction of tds on your fd, then let me know in then let me know in the comments below. I’ll write an article on that too.

So which ITR do you have to fill?

ITR for Individuals (ITR 1 to ITR 4S)

ITR 1

You can file ITR 1 if you satisfy the following criteria:-

1. You have income from Salary or

2. You have income from House Property or

3. You have income from other sources (Interest, Dividend, e.t.c) or

4. You have income of all 3 sources or less mentioned above.

5. However please note the above total income should not exceed Rs 50 Lakhs.

ITR 2

ITR 2 can be filed by Individual and HUF if you don’t have any business or profession of you own.

So basically if you have any source of income except that of Business or Profession you can fill this form.

However please note if you are a partner in a partnership firm, although the income from such firm is considered under the head business or profession you can still use ITR 2 for filing your return.

Although it is income from Business and Profession it is not in the nature of a proprietary business or profession so this ITR can be used as all you will have to mention is the profits derived and salary if any from such partnership firm.

This ITR has replaced the ITR-3 of last year.

ITR 3

This ITR has replaced ITR-4 of last year.

This ITR has to be filed by an individual if you have income from a proprietary business or profession.

In this case you will have to file a profit and loss and balance sheet as well.

ITR 4

This has been removed from this year onwards it seems. For this year at least ITR 3 can be used instead of ITR 4.

ITR 4S

This ITR is to be used if you have to file under presumptive income scheme. That is your income will be deemed to be a flat percentage of your gross receipts.

Which is 8% if you are trading goods and 50% if you are a service provider plus there is no requirement to maintain any sort of books.

However your turnover should be less than the tax audit limit, which currently is Rs 2 Crore for Business and Rs 50 Lakhs for profession. In such a case you will have to get your accouts audited.

ITR 5

ITR 5 is to be file by an assessee other than:-

1. A Company

2. Individual or HUF

3. Person who has to file ITR 7

ITR 6

This ITR has to be filed by a charitable trust, that is an organization claming relief under income tax act, 1961.

So that a wrap up for this post.

Frequently asked questions.

How to file ITR?

Well you can either file it through the utility available on the website of www.incometaxindiaefilling.gov.in or use one the many custom software available in the market.

Income Tax Utility (Excel vs Java)

Income tax utility comes in 2 variants. One is the Java one and other is the Excel option.

In my opinion the Java utility is a little better that the one which is for Excel.

Note:- ITR 1 and 4S can be filed without any utility directly from www.incometaxindiaefilling.gov.in itself.

You can download the utility from their website under downloads section.

What to do after filing ITR.

You will have to either e-verify your income tax return or submit a copy to CPC Bangalore within 120 days of filing your return.

What is the due date to file ITR

The due date for filing your income tax return is 30^th July 2017 for year ended 31^st March 2017 and for Assesses liable for audit is 30^th September 2017.

Also note if you are a partner in a partnership firm which is liable for tax audit, the due date for you will also be 30^th September instead of 30^th June.

If you have any further questions please mention them in the comments below.

Share the article if you found it of any use, have a good day :)