Income Tax Returns: Which is the correct ITR Form for you? By Priyanka - October 23, 2019 Last Updated at: Jul 18, 2020 0 2006 Income Tax Returns: Which is the correct ITR Form for you? Income Tax is a word dreaded by all. From the rich to the middle class, every employed individual in the country is liable to pay income tax. Not even a decade ago, filing even income tax was such a painful process, standing in the long queues just to file a simple income tax was even worse. But, with the digitalization, online tax payment or e-tax payment for Income Tax Return (ITR) can be done easily. But what basically is ITR? Income Tax Return is a form that the individuals file for the income they have earned. ITR is to be filed with the Income Tax Department. According to the Income Tax laws, the income tax is to be compulsorily filed by every individual and business that has earned any amount of income throughout the year. While it might seem easy, but the Income Tax Department has notified seven forms in which income tax needs to be filed depending on the category in which the individual or the business falls into. Filing ITR in India is mandatory for individuals or business if any of the below-given conditions is applicable to them: Gross annual income above 2.5 lakhs (for individuals below 60 years), gross annual income above 3 lakhs (for individuals between 60-80 years) and gross annual income above 5 lakhs (for individuals above 80 years). If the individual has more than one source of income. If anyone wants to claim an income tax refund. If the individual wants to apply for a loan or visa. For all the business class and companies, it is mandatory to pay the income tax, irrespective of them being in profit or loss. File Your Income Tax Returns The forms in which ITR has to be filed are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6. ITR-7. To know which ITR is applicable to you, below are the conditions: ITR 1 (Sahaj): This is filed by individual residents whose total income from sources like salary, pension, property or other sources for the assessment year is less than Rs 50 lakh. ITR 2: This is filed by individuals or Hindu Undivided Family whose source of income is through salary/pension or house property or capital gains where the income is more than Rs 50 lakh. Also, these include Individual Directors of a company. ITR 3: This is filed by individuals or Hindu Undivided Family who have to carry on a profession or business. This is also filed by an individual who has their income as a partner in a firm. Visit to the following link to know about ITR 3 Form ITR 4: This is filed by individuals or businesses whose income exceeds 50 lakhs, who own any foreign asset, income from more than one house property among several others. ITR 5: It is filed by firms, Limited Liability Partnerships, Association of persons, Artificial Juridical Person, Body of Individuals, Estate of insolvent, etc. ITR 6: It is to be filed by companies. The companies set up under section 11, i.e., for charitable purposes are exempt. This ITR can be filed electronically only. ITR 7: It is filed by companies included under section 139(4A) or section 139(4B) among several others. In the case of high earnings, it becomes difficult for the individual or the companies to pay such a big amount of tax altogether. In order to reduce the burden, the government has a policy of advance tax payment, wherein the tax is to be filed and submitted in four instalments. This policy of advance tax payments is applicable only for individuals or companies who have to pay tax more than Rs.10,000. Nowadays, online advance tax payments can be made easily. These payments are made as per the due dates specified by the government. The advance tax payment dates are usually as follows: Before 15th June- 15% Before 15th September- 45% Before 15th December- 75% Before 15th March- 100% Along with ITR, some other taxes need to be paid by the government. One such tax is the Service Tax Payment. Service tax is the tax imposed by the government on various service providers. It belongs to the category of Indirect taxes and came into existence under the Finance Act, 1994. To make this Indirect Tax Payment a more sorted process, online service tax payment can be done by filling in the challan details and making the transaction through net banking. After this, the account details have to be entered to get the account debited online. Conclusion As such, as the due dates of the ITR filing process come close, it is mandatory for every individual to follow the laws made by the Government and work accordingly. It might seem like a tough process, but if carried out legally and finished on time, one can surely avail several benefits. Delays in the ITR filing process could result in paying huge amounts of penalty.