Home > Income Tax > Help Center > Guide on ITR filing in IndiaLast Updated: Jan 21st 2023
Complete guide on Income Tax Return filing in India covering What, Why, and Who should File ITR along with the documents required, IT Forms, Income Tax Rates and Slabs. Also covered on How to start and complete ITR, and eVerify before getting the Refund.
This document covers
Income Tax is a tax that governments impose on financial income generated by all the individuals and entities within their jurisdiction. By law, businesses and individuals must file an Income Tax Return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
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Every Company, Firm, LLP, BOI, Societies, Trusts, and other persons irrespective of whether having Income or Loss during the previous financial year.
Every Individual whose income exceeding the below said limits before allowing any deductions under Section 80C To 80U
| Age | Annual income exceeding * |
|---|---|
| Up to 60 Years | Rs. 2,50,000 |
| From 61 Years to 80 Years (Senior Citizens) | Rs. 3,00,000 |
| Above 80 years (Super Senior Citizens) * | Rs. 5,00,000 |
* Starting from FY 2021-22 (AY 2022-23), Senior Citizens are exempted from ITR Filing. Refer the Budget 2021 announcement @ Senior Citizens to be exempted from filing ITR
Past decades have observed low Income Tax filing compliance in India, during recent years, Govt of India took stringent measures in enforcing the Income Tax Law by linking various benefits for prompt tax filers. Advantages of income tax filing including but not limited to
There are many sources of income one may have during a financial year that should be included in the Income Tax Return. Refer below list of documents that are applicable to file your return.
Mandatory List of Documents / Information
Optional List of Documents / Information
Basically there are 7 different IT forms used to file Income Tax Returns as per their applicability to a person’s source of Income. IT Return Forms are explained in detail.
For Resident Individuals having total income up to Rs 50 Lakhs through Income from Salaries, one house property, other sources (Interest etc.) and Agricultural Income up to Rs 5000. It is not applicable to the individual who is either director in a company or has invested in Unlisted Equity Shares).
For Individuals and HUFs not carrying out business or profession under any proprietorship or partnership
(This form can be used by individuals & HUF who are not eligible to file ITR-1 and whose income is not chargeable under head Business or Profession).
For individuals and HUFs having income from a proprietary business or profession or income from partnership firm.
(This form can be used by individuals & HUF who are carrying out a proprietary business or profession or income from Partnership Firm).
For Presumptive Income from Business & Profession
(This Return Form is to be used by an individual/ HUF/ Partnership Firm whose total income includes Business income is computed under section 44AD & 44AE & income from profession is computed under section 44 ADA).
This Form can be used by a person being a firm, LLPs, AOP, BOI, artificial juridical person, cooperative society, registered societies and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form.
This Form can be used by a company, other than a company claiming exemption under section 11 (Income from property held for charitable or religious purposes).
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
Following are the tax slabs, rates applicable to Individuals, companies, and other persons.
| Income Tax Slab | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Up to Rs.2,50,000 | NIL | NIL | NIL |
| Rs.2,50,000 to Rs.5,00,000 | 5% | 5% | 5% |
| Rs.5,00,000 to Rs.10,00,000 | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% |
| Health & Education Cess | 4% of total income tax payable + surcharge |
| Income Tax Slab | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Up to Rs.3,00,000 | NIL | NIL | NIL |
| Rs.3,00,000 to Rs.5,00,000 | 5% | 5% | 5% |
| Rs.5,00,000 to Rs.10,00,000 | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% |
| Health & Education Cess | 4% of total income tax payable + surcharge |
| Income Tax Slab | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Up to Rs.5,00,000 | NIL | NIL | NIL |
| Rs.5,00,000 to Rs.10,00,000 | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% |
| Health & Education Cess | 4% of total income tax payable + surcharge |
| Income Tax Slab | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|
| Over Rs.50,00,000 to 1,00,00,000 CR | 10% | 10% | 10% |
| Over Rs.1,00,00,000 CR | 15% | 15% | 15% |
They are to be taxed at the rate of 30%.
Domestic Companies are to be taxed at the rate of 30% *.
* The details given above are in broader sense and may vary from case to case.
| Nature | Rate |
|---|---|
| If the income received by the Foreign Company is in the form of royalties paid by the Indian Government in relation to agreements made with an Indian concern (after March 31st, 1961, and before April 1st, 1976) | 50% |
| If the income received is in the form of fees for technical services rendered for agreements made with Indian concerns (after February 29th, 1964, and before April 1st, 1976) | 50% |
| Any other income | 40% |
| Income Tax Slab | Rate |
|---|---|
| Up to Rs.10,000 | 10% |
| Rs.10,000 to Rs.20,000 | 20% |
| Over Rs.20,000 | 30% |
After creating the account you can avail the services mentioned below:
Using Self Service Tax Filing an individual/HUF can E-file the return for current assessment year and the previous assessment year.
Using the Expert Assisted Tax Filing Service an Individual, HUF, Firm, LLP, AOP, BOI, Trust, society, & Company can file the returns.
Using the Expert Consultation Service any assessee can reserve an expert time to describe their case and get an advice, direction quickly.
Starting from 1st April 2022 (FY 2022-23), new tax rules related to Income tax, GST, and company compliance are in effect. Tax rule changes from crypto tax, applicability of e-Invoicing, taxability of EPF withdrawal, Updated IT Returns, to Sr. Citizens IT Filing.
Refer more @ New Tax Rules effective from 1st April 2022
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