Income Tax Return: In the last 3-4 months, the government has made significant changes in terms of tax structure. Some new rules have also been implemented. These changes were brought to make the country’s taxation system automated, independent and integrated with other financial systems. To help taxpayers and make the process of filing Income Tax Return (ITR) hassle-free, the Income Tax Department has issued revised instructions regarding ITR forms for the assessment year 2020-21. These revised instructions are for ITR Forms 3, 5, 6 and 7. Let us know which of these taxpayers has to fill and what are the revised instructions for it-
ITR 3
It is for those individuals and HUFs who earn income from profits from business or profession but are not eligible to fill ITR 1, 2 and 4.
Filing Method: For an assessee whose accounts are to be audited under section 44AB of the Income Tax Act, it is mandatory to file a digitally signed return. The assessee who has to submit the audit report under section 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E, 115JB or 115JC, the date of ITR filing. The audit report has to be submitted electronically on or before.
ITR 5
Is for individual and HUF (ITR-1 to ITR 4 filler), company (ITR-6 filler) or charitable trust / institutions (ITR-7 filler) taxpayers. That is, ITR 5, for partnership firms other than eligible partnership firms for ITR-4, LLPs, Association of Persons, Body of Individuals, Artificial Juridical Person, Local Authority, Cooperative Society, Register Society under Societies Registration Act 1860, Dead Persons Key estate, bankrupt’s estate, business trust, investment fund etc. are for taxpayers for whom no other form is applicable. Persons filing ITR under section 139 (4A) or 139 (4B) or 139 (4C) or 139 (4D) cannot fill ITR-5.
Method of filing: For an assessee whose accounts are to be audited under section 44AB of the Income Tax Act, it is mandatory to file a digitally signed return. The person who submits audit report under section 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA (1), 80LA (1A), 92E, 115JB or 115JC To be done, he has to submit the audit report electronically on or before the date of ITR filing.
ITR 6
This is the form for companies other than companies claiming claims under section 11 of the Income Tax Act. Companies can fill it as per section 2 (17). It is filled by companies that are different from the companies who fill ITR 7 form.
Method of filing and verification: Returns can be filed electronically on the e-filing portal www.incometaxindiaefiling.gov.in and verified only through digital signature.
ITR 7
For those individuals including companies who only need to submit returns under section 139 (4A) or 139 (4B) or 139 (4C) or 139 (4D). People whose income is exempted under section 10 of the Income Tax Act and who do not have to fill the mandatory ITR, can use this form for return filing. Such as local authority under section 10 (20), regimental fund or non-public fund set up by the central armed forces under section 10 (23AA).
Filing Method: It is mandatory for a political party to submit returns through the use of a digital signature. Person who submits audit report under sections 10 (23C) (iv), 10 (23C) (v), 10 (23C) (vi), 10 (23) (via), 12A (1) (b), 92E For this, it is mandatory to submit the report electronically on or before the date of ITR filing. The audit report in Form 10B / 10BB will have to be e-filed under section 139 at least 1 month before the due date of ITR filing.
Article By: Kapil Rana, Founder & Chairman, HostBooks Ltd