INCOME TAX RETURN FILING
The ITR filing is an annual event that applies to all types of taxpayers, regardless of whether they are corporate, LLP, or individual. Taxable income varies depending on the type of taxpayer. We make it easy to understand income tax return packages. Please note that this is not a software access fee, but an actual CA supported ITR registration service.
SETTLE MY TAX Price packages
ITR ( Basic )
Rs. 999
Income tax Return of 1 year of Salaried Individual
ITR ( Standard )
Rs. 1999
Income Tax filing of 1 year for non- audit assessee
ITR ( Premium )
Rs. 3999
Income Tax filing of 1 year for audit assessee upto a turnover of Rs. 2 Cr
KEY POINTS
Pay the taxes first, and then return the files
The filing of income tax returns is a self-assessment method where the taxpayer must calculate the taxable income earned in the previous year and the income tax owed on him. Taxes payable must be paid before submitting a tax return. Taxes can be paid online or via Challan 280 by depositing into the bank by cheque or cash.
Filing in late returns
If the Taxpayer misses the due date for filing the return, the return can still be submitted as a “late return” on the last date of the estimated year. However, losses or accumulated depreciation are not transferable and if an error occurs, late returns cannot be checked again.
Sanction for not applying for ITR
Filing an ITR is a mandatory requirement under Section 139 of the Income Tax Act of 1961, and failure to apply for an ITR will result in a fine of up to Rs. 5,000 / -. These penalties exceed interest or other consequences for not paying taxes. However, if the real reason for ITO satisfaction is shown, it can be revoked or reduced.
| ITR | REQUIREMENTS |
| ITR-1 | This return form is for local individuals whose total income includes:
· Salary / pension income · Home ownership income (except in cases where the loss is carried over from previous years) · Income from other sources (excluding lottery winnings and income from racehorses) · Agricultural income up to 5,000 rupees.
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| ITR-2 | ITR 2 is for the use of an undivided Hindu individual or family (HUF) whose total income includes:
· Salary / pension income; or · Income from home ownership; or · Income from other sources (including lottery winnings and income from racehorses)
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| ITR-3 | This ITR3 form must be used by a person or non-Hindu family that is inseparable from property or employment income.
· Have a business or profession · If you are the sole director of a company · If you have invested in unlisted stock at any time during the financial year · Returns can include homeownership income, salary/pension, and income from other sources · The income per person as a partner in the company |
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ITR-4 |
It applies to individuals and HUF partner companies (excluding LLP) who are based in a company or profession. Also includes those who have chosen an alleged income system in accordance with section 44AD, section 44ADA, and section 44AE of the Income Tax Act. However, if the business turnover exceeds Rs 2 crores, the taxpayer must file an ITR-3.
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| ITR-5 | ITR 5 for Corporations, LLP (Limited Liability Partnership), AOP (Individual Associations), BOI (Individual Authorities), Inheritance of the Deceased, Bankruptcy Assets, Business Trusts, and Investment Funds. |
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ITR-6 |
For companies other than businesses seeking exemption under Section 11 (Income from Assets Held for Charitable or Religious Purposes), this statement only needs to be filed electronically. |
| ITR-7 | Under existing income tax rules, the following companies are eligible to file tax returns using ITR7 u / s 139 (4C):
· Research Association · News agency · Associations or institutions pursuant to Part 10 (23A) · Different types of institutions listed in Section 10 (23B) · ITR 7 r / s 139 (4D)
According to the rules in Article 139 (4D), all institutions, universities and colleges that are not included in other sections are entitled to file income tax returns using Form ITR 7. |
TAX AUDIT UNDER INCOME TAX
What is Tax Audit?
There are different types of audits that are performed under different laws, such as Company audits / mandatory audits according to company law, cost audits, inventory audits, and others. Likewise, the Income Tax Act requires an audit which is called a “tax audit”. As the name suggests, a tax audit is a review of business or professional accounts carried out by a taxpayer for income tax purposes. This simplifies the income calculation for filing an income tax return.
OBJECTIVE
Who is required to undergo a tax audit?
Taxpayers must undertake a tax audit if sales or gross revenues exceed Rs 1 crore during the fiscal year. However, in certain other circumstances, taxpayers may need to verify their accounts.
Every person who earns income from a business or profession is obliged to keep his books for carrying out tax audits, except for those who prefer alleged taxation under Articles 44AD, 44ADA, 44AE of the Income Tax Act since 1961
Taxpayers who are obliged to carry out tax audits are:
- Management assistants with total sales in excess of Rs. 1 crore in the previous year. The tax audit limit of Rs 1 crore has been increased to Rs 5 crore from AY 2020-21 (FY 2019-20) if the taxpayer’s cash income is limited to 5% of gross income or sales and if the taxpayer’s cash payment is limited to 5% of the total payment.
- A worker with a gross income of more than Rs. 50 lakhs in the previous year.
- However, each appraiser who elects Sections 44ADA and 44AD claims that their income is less than the profit calculated for alleged taxation and that the income exceeds the amount taxed under the Income Tax Act.
- Any appraiser who selects Sections 44AE, 44B, 44BB but claims that their income is less than the previous year’s profit calculated using this Section.
What is an audit report?
Tax auditors will submit their reports in the prescribed form, which can be Form 3CA or Form 3CB, where:
The CA 3CA form is given when someone in a business or profession has been authorized to verify their account under another law.
Form № 3CB is given when a person involved in a business or profession is not required to check their account under other laws.
For one of the audit reports mentioned above, the tax auditor must submit the required data on Form 3 CD which is part of the audit report.
How and when should the tax audit report be submitted?
Tax auditors will submit online tax audit reports with their credentials as “Chartered Accountants”. Taxpayers also need to add CA details to their registration portal. After the tax inspector has uploaded the audit report, the report must be accepted / rejected by the taxpayer on their registration portal. If it is rejected for any reason, all procedures must be followed again until the taxpayer has received the taxpayer’s report.
Retribution for not filing or delaying the submission of tax audit reports
However, if a taxpayer who is required to carry out a tax audit fails to do so, at least one of the following actions may be subject to sanctions:
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- 0.5% of total sales, turnover, or gross sales
- Rs 1,50,000