Individual Personal Income Tax Services
- Registration of taxpayer
- Payment of income tax
- Filing for income tax return (or ITR)
- Rectify incorrect information provided
- File for return through the application form out of seven
- Request for income tax refund (or IT refund)
Income tax is the direct tax levied on an individual's or entity's personal annual income, i.e., an entity's personal annual income will decide their personal income tax. The amount of tax to be paid depends upon the amount of income one earns.
The tax is calculated on the next taxable income of the individual over a financial year based on the income slabs, which the Income Tax department predefines.
One can pay their income tax online as well as have access to TDS / TCS payments and non – TDS / TCS payments on the official portal. An individual must provide all relevant documents and fill in the required details to proceed with these payments.
Income tax payments for the financial year 2020-2021 apply to all individuals with annual incomes above Rs. 2.5 lakhs per annum. The highest individual income tax one may have to pay 30% of their income with added cess at 4% of their annual income for the financial year exceeds Rs. 15 lakhs per annum.
Who are the Income Taxpayers?
The individuals aged below 60 years whose annual income exceeds Rs. 2.5 lakhs, the senior citizens aged between 60 years & 80 years whose annual income exceeds Rs. 3 lakhs, and the super citizens aged above 80 years whose annual income exceeds Rs. 5 lakhs must file for ITR, i.e., income tax return, and are eligible income taxpayers. The entities listed below need to pay income tax and file their IT return –
- Corporate firms
- Body of Individuals (BOIs)
- Association of Persons (AOPs)
- Local Authorities
- Artificial juridical persons
- Hindu undivided families (HUFs)
What are ITR and ITR filing?
- Income tax return or ITR is a form used to declare the net tax an entity is liable to pay, claim for tax deductions, and report the gross taxable income. It is necessary for certain entities like firms or companies, Hindu undivided families (HUFs), and salaried individuals or self-employed individuals must file their Income Tax Return (ITR) to the Income Tax (IT) department of India.
- Income tax return filing or ITR filing is the process of reporting the total income earned by a taxable entity over a financial year.
- There are seven different forms available on the official income tax department portal by which an entity can file for income tax return notified through forms viz;
- ITR 1 (also known as SAHAJ) - applicable to resident Indian individuals and HUFs with only one house property and agricultural income less than Rs. 5000 to avail exempt income.
- ITR 2 – applicable to HUFs and individuals.
- ITR 3 – applicable to partners in a firm, HUF, or individual.
- ITR 4 (also known as SUGAM) – applicable to firms, individuals, or HUF with agricultural income less than Rs. 5000 to avail exempt income and only one house property.
- ITR 5 – applicable to LLPs or partnership firms.
- ITR 6 – applicable to companies.
- ITR 7 – applicable to trusts.
The need for an individual to file for ITR.
It is mandatory for an entity or individual to file for an IT return (or ITR) if they fall under any of the below-mentioned categories.
- Individuals who fall within the relevant tax slabs, respectively.
- In the case of a firm or a company, irrespective of the profit or loss earned over a financial year.
- If an individual or entity needs to claim a tax refund.
- If the loss under a head of income has to be carried forward.
- If a resident of India is a signing authority in a foreign account.
- If a non-resident India (NRI) receives any or all of their income source from India, then that income is liable to income tax in India and will require income tax returns.
- If the source of income is derived from property held under a trust for charitable or religious purposes, a political party, a research association, a news agency, medical or educational institution, a hospital, a non-profitable university or educational institution, a trade union, an infrastructure debt fund, any authority, body or trust.
- If a resident Indian has an asset or financial interest in any entity existing outside India.
- If an individual is applying for a loan or visa.
Cases requiring an e-filing
- If a refund is required.
- If gross annual income exceeds Rs. 5 lakhs.
- E-filing of ITR – 3, 4, 5, 6, 7 is mandatory.
The process for Individual ITR filing.
Documents required: PAN, Aadhar, Form 16, Bank account details, Investment details.
- First, visit the official e-filing website.
- Login (if previously registered) or Register (if new or first-time user) to e-file the returns.
For new registers
Select Taxpayer and provide the required details to validate yourself.
Keep providing all the details mentioned in the form.
On the completion of form fill-up, an OTP will be sent to your registered mobile number and email address for validation.
After verifying the OTP, a new window will open in which you will be required to verify the details provided. In case of an incorrect detail provided, changes can be made and re-verified using an OTP.
After verifying details, set up a password and login message.
Click on Register to complete the registration and wait for the acknowledgment message.
For registered users
Login into the official portal and enter the username & password.
After login, click on 'e-file' and select 'File income tax return'.
Select the Assessment Year for which you want to file the ITR.
After that, choose whether you want to file your returns online or offline mode. If you choose 'offline mode', you will need to submit Form 16 and ITR form in paper, and on submission will receive the acknowledgment receipt.
After choosing online, choose to file the return as an Individual.
Choose the form to file your ITR. Proceed with ITR 1.
Answer the questions asked before moving on to the next page.
Provide your bank account details. If already provided, re-validate.
Check the details mentioned, confirm the summary of returns, and validate.
Verify your returns and send the hard copy to the IT department. It is a mandatory process.
There are 7 types of ITR forms available viz; ITR 1, 2, 3,4,5,6 and 7.
Any Individual or HUF who gets profits and gains from business or profession can file from ITR 3.
ITR 1 is for income from salary, pension, and other sources.
Yes, the IT department provides an e-filing utility on the official portal.
E-payment is the online payment of taxes, whereas e-filing is the process of furnishing the returns electronically.
Yes, penalties are levied if you fail to file the ITR.
Yes, you can file the ITR after the due date, but a penalty will be levied.