Filing ITRs is mandatory for all Indians, including NRIs, with a total income of over Rs 2.5 lakh. The threshold for senior citizens (above 60 years) is Rs 3 lakh while that for super senior citizens - those aged 80 and above - is Rs 5 lakh. Though the last date of filing I-T returns is July 31, the Revenue Department has said that over 1.46 crore income tax returns have already been filed so far. Of this, over 7.94 lakh tax returns were alone filed on 16 July, said the government.
There are chances that the last date of filing ITR may be extended; however, you should file your ITR at the earliest to avoid last-minute glitches. You will still be able to file income tax returns till March 2020, but with a hefty fine. The penalty for ITRs furnished on or before December 31 is Rs 5,000 and doubles up for later filings. However, if your taxable income is below Rs 5 lakh, the maximum penalty will be Rs 1,000.
Apart from paying a late fee, you will also have to pay interest on due taxes. Another drawback is that you'll not be allowed to carry forward certain losses like capital or house property loss. Also, not paying taxes in time could land you in jail. If your due income tax exceeds 25 lakh, you could get jail term up to seven years.
So, which income tax return form should you file?
- ITR-1: ITR-1, also called Sahaj, is for individuals boasting total income up to Rs 50 lakh. This covers salary or pension income, income from one house property (not a case of brought forward loss) or from other sources except lottery/horse racing winnings, as well as income-related to patents and dividends.
- ITR-2: This form is for individuals earning over Rs 50 lakh annually, or those who own more than one house property. It is also applicable for individuals and HUFs not boasting any income from profit and gains from business or profession.
- ITR-3: This is for individuals and HUFs having income from a proprietary business or profession.
- ITR-4: Also called Sugam, this form is for presumptive income from a business & profession, and can be used by an Individual/HUF/Firm (other than LLP).
- ITR-5: This form applies to firms, LLPs, AOPs, BOIs, artificial juridical persons, cooperative societies and local authorities
- ITR-6: This is for a company, other than those claiming an exemption under Section 11 (income from property held for charitable or religious purposes)
- ITR-7: This form is for persons including companies required to furnish return under Sections 139(4A to F), covering trusts, political parties, institutions, colleges, investment funds, etc.
Edited by Manoj Sharma