Income Tax in India : Guide to Filing Income Tax Return And Its Forms

What is income tax return?

An income tax return is a form that individuals, businesses, or other entities file with the government to report their income, deductions, and tax liabilities. It summarizes the financial information for a specific period, typically a year, and calculates the amount of tax owed or the refund due to the taxpayer. The return serves as a way for taxpayers to fulfill their legal obligation to report their income and pay the appropriate amount of taxes based on the tax laws and regulations of their jurisdiction.

Returns Applicable to Individual, Business and HUF for AY 2023-2024

ITR-1 Applicable for Salaried Individuals

This income tax return is applicable to individuals who are residents (excluding Not Ordinarily Residents) and have a total income up to ₹50 lakh. It covers income from sources such as salary or pension, income from one house property, other sources like interest, family pension, and dividends, and agricultural income up to ₹5,000. These individuals are required to file this return to report their income and calculate their tax liability or refund, if applicable.

ITR-2 Applicable for Individual and HUF

Individuals and Hindu Undivided Families (HUF) who do not have income under the head "Profits and Gains of Business or Profession" are not eligible for filing ITR-1. In other words, if you have income from a business or a profession, you cannot use ITR-1 to file your income tax return. ITR-1 is specifically designed for individuals and HUFs with income from salary, pension, one house property, and other sources, but not for those who have income from business or profession.

ITR-3 Applicable for Individual and HUF

If an individual or Hindu Undivided Family (HUF) has income under the head "Profits and Gains of Business or Profession," they are not eligible for filing ITR-1, ITR-2, or ITR-4. These tax return forms are not suitable for reporting income from business or profession. If you have income from such sources, you would need to use a different tax return form that is specifically designed to accommodate business or professional income, such as ITR-3, ITR-5, or ITR-6, depending on the nature and structure of your business or profession.

ITR-4 Applicable for Individual, HUF and Firm (other than LLP)

This return is applicable to individuals, Hindu Undivided Families (HUFs), or resident firms (excluding Limited Liability Partnerships) with total income up to ₹50 lakh. It is specifically for those who have income from a business or profession that is computed on a presumptive basis under sections 44AD, 44ADA, or 44AE of the Income Tax Act. Additionally, income from sources such as salary or pension, one house property, other sources like interest, family pension, dividends, and agricultural income up to ₹5,000 can be included in this return. The form is designed to cater to these specific circumstances and helps individuals, HUFs, and eligible firms report their income and calculate their tax liability or refund, if applicable.

ITR-5 Association of Persons (AOP) / Body of Individuals (BOI) / Trust / Artificial Juridical Person (AJP)

This form can be used by various types of entities, including:

• Firm: A partnership firm.
• Limited Liability Partnership (LLP): A specific form of partnership that offers limited liability to its partners.
• Association of Persons (AOP): An association formed for carrying out a particular activity or business.
• Body of Individuals (BOI): A group of individuals coming together for a common purpose.
• Artificial Juridical Person (AJP): A legal entity that is not a natural person, such as a corporation or government body.
• Local Authority: A governing body at the local level, such as a municipality or city council.
• Representative Assessee: A person representing another taxpayer, usually in cases of legal incapacity or non-residency.
• Cooperative Society: A voluntary association of individuals who cooperate for their mutual benefit.
• Society registered under the Societies Registration Act, 1860 or under any other law of any State: A registered society operating under the respective state's laws.
• Trust other than Trusts eligible to file Form ITR-7: Trusts that are not required to file ITR-7.
• Estate of Deceased Person: The assets and liabilities left behind by a deceased individual.
• Estate of an Insolvent: The assets and liabilities of an insolvent person.
• Business Trust referred to in Section 139(4E): A specific type of trust that operates for business purposes.
• Investments Fund referred to in Section 139(4F): A fund that primarily invests in securities.

All these entities can use this form to file their income tax returns, report their income, and fulfill their tax obligations as per the provisions mentioned in the Income Tax Act.

ITR-6 Applicable for Domestic Company

This return is applicable for companies that are not claiming exemption under section 11 of the Income Tax Act. It covers various types of entities, including Indian companies, body corporates incorporated under the laws of a country outside India, and any institution, association, or body (Indian or non-Indian) that is declared by a general or special order of the Board to be a company. Essentially, it encompasses a wide range of corporate entities, both domestic and foreign, excluding those specifically exempted under section 11. These companies are required to file this return to report their income and fulfill their tax obligations as per the tax laws and regulations.

ITR-7 Applicable for Domestic Company

This return is applicable to individuals and companies who are required to furnish returns under specific sections of the Income Tax Act. These sections are as follows:

• Section 139(4A): Individuals or companies deriving income from property held under trust, either wholly or partially, for charitable or religious purposes.
• Section 139(4B): Chief Executive Officers of every political party.
• Section 139(4C): Entities such as research associations, news agencies, or other organizations mentioned in Section 10 of the Income Tax Act.
• Section 139(4D): Universities, colleges, or other educational institutions referred to in Section 35 of the Income Tax Act.

These individuals and entities are required to file this return to fulfill their tax obligations and report their income in accordance with the specific provisions mentioned in the respective sections of the Income Tax Act.

Applicable Forms

There are various forms applicable under the Income Tax Act, 1961. Some commonly used forms include:

• Form 12BB: Form 12BB is a document that an employee provides to their employer to provide details and evidence of various tax-related claims. These claims include House Rent Allowance (HRA), Leave Travel Concession (LTC), deduction of interest on a home loan, and tax-saving claims or deductions on eligible payments or investments. The purpose of submitting this form is to ensure that the correct amount of tax is deducted at source (TDS) by the employer.
• Form 16: Form 16 is a certificate provided by an employer to their employee at the end of the financial year. It contains details such as the employee's income, deductions, exemptions, and tax deducted at source (TDS) from their salary. The purpose of this form is to help the employee compute their tax liability or refund amount accurately.
• Form 16A: Form 16A is a certificate provided by the deductor (person or entity responsible for deducting tax) to the deductee (person receiving payment subject to tax deduction) under Section 203 of the Income Tax Act, 1961. This form is specifically used for TDS on income other than salary. It is issued quarterly and includes details such as the amount of tax deducted at source (TDS), nature of payments, and the TDS payments deposited with the Income Tax Department. The purpose of Form 16A is to provide evidence of TDS on non-salary income to the deductee.
• Form 67: Form 67 is a statement submitted by a taxpayer to report their income earned from a country or specified territory outside India, as well as to claim Foreign Tax Credit. The taxpayer needs to submit this form on or before the due date specified for filing the Income Tax Returns (ITRs) under Section 139(1) of the Income Tax Act. The form provides details of the income earned abroad and the amount of foreign tax credit claimed by the taxpayer. Its purpose is to facilitate the reporting and claiming of foreign income and the associated tax credit in the taxpayer's Indian tax return.
• Form 26AS: Form 26AS is a statement provided by the Income Tax Department, which is available on the e-Filing Portal. It contains details of tax deducted or collected at source on behalf of the taxpayer. The form provides a consolidated view of all taxes that have been deducted or collected by various entities, such as employers, banks, and other deductors, and deposited with the Income Tax Department against the taxpayer's Permanent Account Number (PAN). It serves as an important document for taxpayers to verify their tax payments and reconcile them with their own records while filing their income tax returns.
• AIS : AIS (Annual Information Statement) is provided by the Income Tax Department through the e-Filing portal. It includes details such as tax deducted/collected at source, SFT (Statement of Financial Transactions) information, payment of taxes, demand/refund status, and other relevant information. This statement also encompasses pending/completed proceedings, GST information, and information received from foreign governments. In summary, AIS provides a comprehensive overview of various financial and tax-related aspects pertaining to an individual or entity.
• Form 15G: Form 15G is a declaration submitted by resident taxpayers who are individuals (less than 60 years old), Hindu Undivided Families (HUFs), or other non-corporate entities to a bank or financial institution. It is used to claim certain receipts without deduction of tax at source (TDS) on interest income if their total income for the financial year is below the basic exemption limit. The form requires the taxpayer to provide an estimate of their income for the relevant financial year. The purpose of this form is to prevent unnecessary tax deduction on interest income for individuals whose total income falls below the taxable threshold.
• Form 15H: Form 15H is a declaration submitted by resident individuals who are 60 years of age or older to a bank or financial institution. It is used to claim certain receipts without deduction of tax at source (TDS) on interest income. Similar to Form 15G, this form allows individuals to avoid TDS on interest income if their estimated total income for the financial year is below the taxable threshold. The form requires the taxpayer to provide an estimate of their income for the relevant financial year. The purpose of this form is to prevent unnecessary tax deduction on interest income for senior citizens whose total income falls below the taxable limit.
• Form 10E: Form 10E is a form submitted by an employee to the Income Tax Department. It is used to furnish the particulars of income for claiming relief under section 89(1) of the Income Tax Act. This form is applicable when an employee receives salary in arrears or advance. It also covers other components such as gratuity, compensation on termination, and commutation of pension. The purpose of Form 10E is to enable employees to claim tax relief by spreading out the tax liability over the relevant years, considering the actual year(s) in which the income is received.
• Form 3CB-CD: Form 3CB-CD is submitted by taxpayers who are required to get their accounts audited by an accountant under section 44AB of the Income Tax Act. It needs to be furnished at least one month before the due date for filing the income tax return. The purpose of Form 3CB-CD is to provide a comprehensive audit report and supporting information to comply with the statutory requirement of getting accounts audited under section 44AB of the Income Tax Act.
• Form 3CEB  : Form 3CEB is submitted by taxpayers who are involved in international transactions or specified domestic transactions and are required to obtain a report from a chartered accountant under section 92E of the Income Tax Act. This form needs to be furnished at least one month before the due date for filing the income tax return. It contains a report prepared by the chartered accountant, which provides details of all the international transactions and specified domestic transactions entered into by the taxpayer. The purpose of Form 3CEB is to provide information about these transactions and ensure compliance with transfer pricing regulations and other related provisions of the Income Tax Act.
• Form 3CE: Form 3CE is submitted by taxpayers who are required to obtain a report from an accountant under section 44DA of the Income Tax Act. This form is applicable when the taxpayer receives specified incomes, such as royalty or fees for technical services, from the government or an Indian concern. It needs to be furnished one month before the due date for filing the income tax return. The form includes a report prepared by the accountant, which provides details of the income received by the taxpayer. The purpose of Form 3CE is to comply with the reporting requirements for specified incomes and ensure proper taxation of such receipts as per the provisions of the Income Tax Act.
• Form 3CA-3CD: Form 3CA-3CD is provided by taxpayers who require a mandatory audit under any other law and are also required to get their accounts audited by an accountant under section 44AB of the Income Tax Act. It needs to be furnished one month before the due date for filing the income tax return. The purpose of Form 3CA-3CD is to provide a comprehensive audit report and supporting information to comply with both the statutory requirement of getting accounts audited under section 44AB of the Income Tax Act and the audit requirements under other applicable laws.
• Form 29B: Form 29B is submitted by taxpayers who are required to obtain a report from an accountant under section 115JB of the Income Tax Act. This form is applicable to companies to which Section 115JB applies, and it needs to be furnished one month before the due date for filing the income tax return. The form includes a report prepared by the accountant, certifying that the book profit of the company has been computed in accordance with the provisions of Section 115JB. The purpose of Form 29B is to ensure compliance with the specific requirements for computing book profit under Section 115JB, which is a provision related to the Minimum Alternate Tax (MAT) for companies.
• Form 10-IC: Form 10-IC is submitted by domestic companies that wish to opt for taxation under section 11BAA of the Income Tax Act at a reduced rate of 22%. The form needs to be filed by the taxpayer on or before the due date for filing the Income Tax Return (ITR). By filing Form 10-IC, companies exercise the option to be taxed at the specified reduced rate. This provision allows eligible companies to avail a lower tax rate and is aimed at promoting investment and growth in the corporate sector.
• Form 10-ID: Form 10-ID is submitted by new manufacturing domestic companies that were incorporated after 1st October 2019 and wish to opt for the special tax rate of 15% under section 115BAB of the Income Tax Act. The form needs to be filed by the taxpayer. By filing Form 10-ID, these companies exercise the option to be taxed at the specified reduced rate, which is aimed at promoting investments in manufacturing and boosting economic growth.
• Form 10-CCB: Form 10-CCB is submitted by taxpayers who are required to obtain a report from an accountant in order to claim deductions under section 80-I(7), 80-IA, 80-IB, 80-IC, or 80-IE of the Income Tax Act. This form is applicable for claiming deductions related to various business activities. It is mandatory to file Form 10-CCB along with the audit report, and it needs to be submitted one month before the due date for filing the Income Tax Return (ITR) under section 139(1). The purpose of Form 10-CCB is to provide the necessary audit report to support the taxpayer's claim for deductions under the specified sections of the Income Tax Act.
• Form 10-CCBC: Form 10-CCBC is a required document for taxpayers who want to claim deductions under section 80-IB(11B) of the Income Tax Act, 1961. It must be submitted along with an audit report from an accountant. The form needs to be filed one month before the due date for filing the income tax return under section 139(1).
• Form 10B: Form 10B is to be submitted by taxpayers who are charitable or religious trusts or institutions and need to obtain a report from an accountant under section 12A(1)(b) of the Income Tax Act, 1961. The form contains an audit report and must be filed one month before the due date for filing the income tax return under section 139(1).
• Form 10BB: Form 10BB is required to be submitted by taxpayers who need to obtain a report from an accountant under section 10(23C) of the Income Tax Act, 1961. This applies to funds, trusts, institutions, universities, educational institutions, hospitals, or medical institutions mentioned in sub-clauses (iv), (v), (vi), or (via) of Section 10(23C). The form contains an audit report and must be filed one month before the due date for filing the income tax return under section 139(1).
• Form 10: Form 10 is to be submitted by charitable or religious trusts, institutions, or associations. The form contains a statement that declares the accumulation or setting apart of income for a specific purpose. It must be furnished at least two months prior to the due date for filing the return as specified under section 139(1) of the Income Tax Act, 1961.
• Form 10A: Form 10A is to be submitted by charitable or religious trusts, institutions, associations, or companies. The form is used for various purposes such as applying for registration, provisional registration, intimation, approval, or provisional approval of a charitable or religious trust, institution, or association. It serves as an application form for seeking recognition or approval under the relevant provisions of the Income Tax Act, 1961.
• Form 10BD: Form 10BD is to be submitted by charitable or religious trusts. The form is used to provide a statement with details of donations received for a specific financial year. It needs to be furnished on or before the 31st of May of the financial year immediately following the year in which the donation is received. This form is used to report and disclose the particulars of donations received by the trust.
• Form 9A: Form 9A  is to be submitted by charitable or religious trusts. The form is used to apply for the exercise of an option under clause (2) of the explanation to Section 11(1) of the Income Tax Act. This option is applicable when the application of income falls short of 85% due to non-receipt of the income during the previous year in which it was received. The form needs to be furnished before the expiry of the time allowed under section 139(1) for filing the income tax return for the relevant assessment year. It allows trusts to make a valid claim for the exemption under Section 11(1).
• Form 29C: Form 29C is to be submitted by taxpayers (other than a company) who are required to obtain a report from an accountant under section 115JC of the Income Tax Act, 1961. The form contains a report used to compute the Adjusted Total Income and Alternate Minimum Tax of the taxpayer. It is a requirement for individuals to determine their tax liability under the Alternate Minimum Tax provisions.