Taxation

An income tax is a tax imposed on an individual(s) or entity (taxpayer) that varies with respective income or profits (taxable income). Taxation rates may vary by the type or characteristics of the taxpayer.
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Income Tax Return Due Date

For individual taxpayers, it is the 31st July of every year.

For companies and taxpayers requiring a tax audit, it is on 30th September.

Tax Audit Limit (Section 44AB)

Tax Audit Limit depends on the total sales/ turnover or gross receipts if it exceeds the following limit: 

In case of Business- Rs. 1 Crore in the previous year

In the case of Profession – Rs.50 lakhs in the previous year.

Presumptive Taxation Scheme (Section 44AD)

A tax audit is required in case total turnover exceeds Rs. 2 Crores.

Maintenance of Books of Accounts (Section 44AA)

Maintenance of Books of accounts is mandatory if income/ profit exceeds Rs. 1.2 lakhs or total sales/ turnover/ gross receipts exceeds Rs. 10 lakhs in any of the 3 immediately preceding Financial Years. 

In case of Individual / HUF- Income > Rs. 2.5 Lakhs, or Turnover > Rs. 25 Lakhs.

Penalty for Late Filing of Income Tax Return (Section 234F)

  • Late Filing between 1st August and 31st December – Rs. 5000

  • Late Filing After 31st December – Rs.10,000

  • Penalty if taxable income is less than Rs.5 lakhs – Rs.1000

ITR FORMS

ITR 1

Tax Return For Resident Individual Having Income Less Than 50 Lakhs

  • Salary / Pension

  • One House Property

  • Other Sources

ITR 2

Tax Return For Individuals Having Income More Than 50 Lakhs

  • All From ITR-1

  • More Than One House Property

  • Capital Gain

  • Foreign Income / Asset

ITR 3

Income From Business / Profession

  • Individuals / HUF

  • Tax Audits / Non – Tax Audit

  • House Property

  • Salary

  • Capital Gain

  • Other Sources

ITR 4

Tax Return For Persons Having Income From Presumptive Business / Profession

  • All Forms ITR-1

  • Total Income not More Than 50 Lakhs

  • Business Income U/S 44AD,44AE,44DA

ITR 5

Return is Applicable to

  • FIRMs

  • LLPs

  • AOPs / BOIs

ITR 6

Return For Companies (Not Claiming Exemption Under Section 11)

  • Companies whose Income From Property is held for Charitable Or Religious Purpose

ITR 7

Return Is Applicable to Persons / Companies Under

  • Section 139 (4A), (4B),(4C),(4D)

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