During the last 3-4 months, the government has rolled out several changes in the tax assessment structure, introduced a few new forms and a few new steps. In a general sense, these progressions are brought to make the taxation system automate, automate, independent, and to interlink other monetary frameworks with which the other related monetary information can be aggregated for better financial analysis.
Revised Instructions for Filing ITR Forms 2,3,5,6, and 7
To help taxpayers and make the ITR filing experience smooth, the Income Tax Department has issued revised instructions for filing ITR forms for A.Y. 2020-21. Below are the form-wise instructions issued by the Income Tax Department to fill the ITRs:
For an Individual or HUF not eligible to file ITR-1 and not having income from business or profession.
– For an Individual or HUF not eligible to file ITR-1, ITR2, or ITR-4 and having income from business or profession.
Manner of Filing
In case of an assessee whose accounts are liable to be audited under section 44AB, it is required to file the digitally signed return. In the event of an assessee who is needed to outfit audit report under section 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E, 115JB or 115JC, such report to be outfitted electronically at the latest the date of filing ITR.
This form can be utilized by individual being a – Firm, LLP, Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP), Local Authority, Co-operative Society, Society registered under Societies Registration Act, 1860, Trust other than trusts eligible to File ITR-7, Estate of expired individual, Estate of wiped out, Business trust, Investment store. An individual who is needed to file ITR u/s 139(4A) or 139(4B) or 139(4C) or 139(4D) can’t file ITR-5.
Manner of Filing
In case of an assessee whose accounts are liable to be obligated under section 44AB, it is obligatory to file the digitally signed return. If there should be an occurrence of an assessee who is needed to outfit review report under section 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA(1), 80LA(1A), 92E, 115JB or 115JC, such report to be outfitted electronically at the very latest the date of filing ITR.
This ITR form can be utilized by organizations according to section 2(17) of the Income Tax Act. This form is filed by organizations other than organizations needed to file a return in Form ITR-7. According to section 2(17) of the Income Tax Act, organization implies Indian Company, incorporated by or under the laws of the nation outside India, Any foundation, affiliation or body, whether incorporated or not Indian or Non-Indian which is announced by general or special order of the board to be company and so on.
Manner of Filing
The return form can be filed electronically on the e-filing portal i.e. www.incometaxindiaefiling.gov.in and can be verified by way of a Digital signature only.
This return form can be utilized by people including organizations needed to outfit return under section 139(4A), 139(4B), 139(4C) or 139(4D).
Class of people whose pay is exempt u/s 10 and who are not obligatorily needed to file ITR may utilize this form for filing return, for example, – Local power u/s 10(20), Regimental asset or Non-public asset set up by the Armed powers of the Union u/s 10(23AA), and so forth.
Manner of Filing
A political party shall compulsorily furnish the return by using Digital Signature. In case of an assessee who is required to furnish audit report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23)(via), 12A(1)(b), 92E such report to be furnished electronically on or before the date of filing ITR. Audit report in Form 10B/10BB has to be e-filed at least 1 month prior to the due date of filing ITR u/s 139.
Instructions to Fill the ITR Forms
Some common instructions to fill up all the ITR forms (ITR 2, 3, 5, and 7) are as follows:
Manner of Filing and Verification
The return form can be filed electronically on the e-filing portal for example www.incometaxindiaefiling.gov.in and can be checked using any of these strategies namely Digital signature or By way of Electronic verification code (EVC) or Aadhaar OTP or By sending the signed copy of ITR-V through the post at CPC Bangalore Address (should reach within 120 days of the filing of ITR form).
Obligation to file ITR (Applicable for ITR 2 and 3)
Each Individual/HUF whose total income prior to allowing deductions under Chapter VI-A surpasses the basic exemption limit is required to file ITR.
Basic Exemption Limit for A.Y. 2020-21
- Resident Individual having an age of 60 years or more but less than 80 years whenever during the previous year is Rs 3,00,000
- For Resident Individual having an age of 80 years or more whenever during the previous year is Rs 5,00,000
- Any other Individual or HUF is Rs 2,50,000
For more information, visit the website of All India ITR