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Section 143(1): Letter of Intimation

Section 143(1): Letter of Intimation

Important Keyword: Income Heads, IT Notice, Section 143(1).

Section 143(1): Letter of Intimation

Once the taxpayer files their return, the income tax department performs an initial check. This process involves verifying any arithmetic mistakes, incorrect claims in the return, differences in tax calculations, and confirming if tax payments are accurate. If the department finds any issues, they send the taxpayer an intimation letter under section 143(1). This letter shows a comparison between the figures provided in the filed Income Tax Return and those calculated by the income tax department.

Intimation under section 143(1)

When a taxpayer submits their return, it undergoes an initial assessment by the Central Processing Centre (CPC). The CPC, established by the Central Board of Direct Taxes (CBDT), centralizes the processing of returns to quickly determine tax liabilities or refunds.

Purpose and Benefits of the CPC

The CPC automates the initial processing of tax returns, providing several benefits:

  • For Taxpayers: Faster and smoother processing of returns.
  • For the Tax Department: Reduced workload, allowing focus on more complex tasks.

Process of Preliminary Assessment

The assessment involves a computer-driven system that checks the return for accuracy. Here’s the step-by-step flow:

  1. Recalculation of Income: The system recalculates the total income or loss based on the available information.
  2. Verification: Major categories are verified, including:
    • Incomes under various heads
    • Gross total income
    • Deductions under Chapter VIA
    • TDS and taxes paid (Self Assessment tax and Advance Tax)
  3. Adjustments and Intimation:
    • After verification, adjustments are made as per section 143(1).
    • An intimation letter is sent to the taxpayer detailing the proposed adjustments.
    • The taxpayer must respond within a prescribed time limit.
    • If a response is received, final adjustments are made accordingly. If not, the proposed adjustments are considered final.
  4. Final Tax Liability: Adjustments are made against TDS and other relief claims under sections 90/91 if applicable, followed by the issuance of the final intimation to the taxpayer.

Types of Intimations

  • No Demand or No Refund: No adjustments made, and the filed return is accepted as is.
  • Demand Intimation: Adjustments result in additional tax liabilities.
  • Refund Intimation: If the tax liability is lower than the taxes paid, the excess amount is refunded.

Types of Adjustments under Section 143(1)

The CPC may issue an intimation letter for the following adjustments:

  • Arithmetic Errors: Corrections of calculation mistakes.
  • Incorrect Claims: Disallowance of claims that are evidently incorrect based on the return’s information.
  • Disallowed Expenses: Expenses reported in the audit report but not in the return.
  • Set-Off of Losses: Disallowance of loss set-offs if the previous year’s return was filed late.
  • Unreported Income: Income shown in Form 26AS/16A/16 but not reported in the return.
  • Inconsistencies: Contradictions within the return or with other sections.

Sample Intimation letter u/s 143(1)

Sample intimation u/s 143(1)

Communication of Intimation under section 143(1)

Taxpayers can receive the intimation letter under section 143(1) through their registered email or mobile number on the income tax portal. The Central Processing Centre (CPC) is the sender of these intimations.

Time Limit for Issuance

The income tax department must issue the intimation under section 143(1) within nine months from the end of the financial year in which the return was filed.

Example

If Jay filed his income tax return on July 20, 2023, for the financial year 2022-23, the income tax department can send the intimation under section 143(1) up to December 31, 2024. This is because it is nine months from the end of the financial year 2022-23, in which the return was filed.

No Communication within Timeframe

If a taxpayer does not receive any intimation within this nine-month period, it implies that there have been no changes or corrections made to the initially filed return. Consequently, there are no modifications in the tax liability or refund due. In such cases, the filed return is considered to have been accepted as filed, effectively serving as an intimation under Section 143(1).

Steps to download Intimation under Section 143(1)

  1. Login to the e-filing portal
    Login to the income tax website using valid credentials.
  2. Navigate to View Filed Returns
    Go to e-file > Income Tax Returns > View Filed Returns
  3. Click on View Details
    For the relevant Assessment Year, click on View DetailsView Filed Returns_Income Tax Website
  4. Download Intimation Order under Section 143(1)
    In the next step, taxpayers can see the status of each filing stage. If it shows ‘Processed’, they can download the intimation by clicking on ‘Download Intimation Order’.

    Download Intimation Order_Income Tax Website
  5. Open Intimation Order under Section 143(1)
    The intimation order is password-protected. The password to open the intimation letter is PAN in lowercase and the date of birth (DDMMYYYY) is without any space. Eg: PAN is AAAPA1234A and the date of birth is 01/01/2000. The password would be aaapa1234a01012000.

Response to Intimation under section 143(1)

Upon receiving the intimation, the taxpayer should initially verify the correctness of the information provided. This includes confirming details such as the Name, PAN, Assessment year, etc.

Case scenarioAction
The taxpayer’s filed return matches the department’s calculations, resulting in no additional tax demand or refunds.In such cases, no actions are required from the taxpayer. And in cases where excess tax are paid the refund amount will be credited to their pre-validated bank account.
As per the calculations of the department, the tax liability is lower however while filing the return taxpayer has paid excess taxes.In this case, no actions are required by the taxpayer and the refund will be credited to their pre-validated bank account.
There are a few errors in the return filed by the taxpayer.The taxpayer needs to file a revised return u/s 139(5).
The tax liability as per the calculations of the department is higher than the tax paid by the taxpayer while filing a return.If the taxpayer Agrees: They need to pay the outstanding demand and file a response.

If the taxpayer Disagrees: 
They need to file a Rectification request u/s 154.

Consequences of Non-response

Upon receiving an intimation letter under section 143(1), the taxpayer must respond within the specified time limit.

Consequences of Non-Response

If the taxpayer fails to respond within the given timeframe, the income tax department will treat the proposed adjustments as final. The department will then proceed to calculate the final tax liability or refund based on these adjustments.

Final Intimation

After these calculations, the taxpayer will receive a final intimation letter detailing the ultimate tax liability or refund. This final letter concludes the assessment process under section 143(1).

Read More: Reprocess the ITR : e-Filing portal

Web Stories: Reprocess the ITR : e-Filing portal

Official Income Tax Return filing website: https://incometaxindia.gov.in/

AY 2021-22 File ITR-2 Form for Income from Capital Gains

AY 2021-22 File ITR-2 Form for Income from Capital Gains

Important Keyword: Capital Gains, HUF, Income Heads, ITR Form, ITR-2.

What is ITR-2 Form?

ITR-2 Form serves as the Income Tax Return form for individuals and HUFs who lack any business or professional income. This means individuals with salary, house property, capital gains, and other sources of income can file ITR-2.

Important Income Tax Documents:

  • Form 16: For salary income
  • Form 26AS: Tax Credit Statement
  • Form 12BB: Statement showing particulars of perquisites, other fringe benefits or amenities, and profits in lieu of salary with value thereof
  • Form 10BA: Declaration to claim deduction under section 80GG
  • Form 15G/15H: Declaration to avoid tax deduction at source on interest income

Mandatory ITR Filing:

Until FY 2018-19 (AY 2019-20), filing Income Tax Return wasn’t compulsory if the total income was below the basic exemption limit. However, Budget 2019 introduced a new provision under Section 139(1), mandating ITR filing if a taxpayer engages in high-value transactions. These transactions include:

  • Depositing over INR 1 crore in a current account
  • Incurring foreign travel expenses exceeding INR 2 lakhs
  • Incurring electricity expenses exceeding INR 1 lakh

ITR-2 Form Breakdown:

The ITR-2 Form comprises 25 sections, including Part A General, Schedule Salary, Schedule House Property, Schedule Capital Gains, and others. These sections must be filled before reviewing, paying tax, and submitting the return.

Who Can File ITR-2?

ITR-2 can be filed by individuals or HUFs whose total income includes:

  • Salary/pension income
  • Income from multiple house properties
  • Capital gains income
  • Income from other sources (including lottery winnings and income from racehorses)
  • Agriculture income exceeding INR 5,000
  • Foreign assets/foreign income

Additionally, it can be used when another person’s income is clubbed with the taxpayer’s income falling under any of the above categories.

Who Cannot File ITR-2?

Individuals with total income including business or professional income cannot file ITR-2. Likewise, taxpayers earning income from a partnership firm must file ITR-3 or ITR-4 to declare such income.

File ITR-2 Online using Income Tax Website

  1. General Information
    Fill in the general information which consists of your contact, personal information, filing status & bank details. 

    www.incometax.gov.in - General Information for ITR 2 Filing
  2. Schedule Salary, House Property & Other Sources
    In Schedule Salary, you need to review, enter, edit details of your income from salary or pension, exempt allowances and deductions u/s 16.
    Under schedule house property, you need to review, enter & edit details relating to house property (self-occupied, let out, or deemed let out). The details include co-owner details, tenant details, rent, interest, pass through income etc.
    and, under schedule other sources, you need to review, enter and edit details of all your income from other sources, including (but not limited to) income charged at special rates, deductions u/s 57 and income involving race horses.


    www.incometax.gov.in - Schedule Salary
  3. Schedule Capital Gains
    Capital Gains arising from sale or transfer of different types of capital assets have been segregated. In a case where capital gains arises from sale or transfer of more than one capital asset, which are of same type, please make a consolidated computation of capital gains in respect of all such capital assets of same type. But in case of transfer of land / building, it is mandatory to enter the computation towards each land / building. In Schedule Capital Gains, you need to enter details of your short term and long term capital gains or Losses for all types of capital assets owned.
  4. Schedule 112A & Schedule 115AD(i)(iii) Proviso
    Under Schedule 112A, you need to review, enter and edit details about sale of equity shares of a company, an equity-oriented fund, or a unit of a business trust on which STT is paid.
    Schedule 115AD (1)(iii) proviso involves entering the same details as for Schedule 112A but is applicable to non-residents

    www.incometax.gov.in - 112A & 115AD(i)(iii)
  5. Schedule Current Year’s Loss Adjustment (CYLA)
    In Schedule Current Year’s Loss Adjustment (CYLA), you will be able to view details of income after set-off of current year losses. The unabsorbed losses allowed to be carried forward out of this are taken to Schedule CFL for carry forward to future years.

    www.incometax.gov.in - Schedule CYLA
  6. Schedule Brought Forward Loss Adjustment (BFLA)
    You can view the details of income after set-off of brought forward losses of earlier years.

    www.incometax.gov.in - Schedule BFLA
  7. Schedule Carry Forward Loss
    You can view the details of losses to be carried forward to future years.

    www.incometax.gov.in - Schedule CFL
  8. Schedule VI-A 
    you need to add and verify any deductions you need to claim under Section 80 – Parts B, C, CA, and D of the Income Tax Act

    www.incometax.gov.in - Schedule VI-A
  9. Schedule AMT
    You need to confirm the computation of Alternate Minimum Tax payable u/s 115JC.

    www.incometax.gov.in - Schedule AMT
  10. Schedule AMTC
    You need to add details of tax credits u/s 115JD.

    www.incometax.gov.in - Schedule AMTC
  11. Schedule SPI
    You need to add the income of specified persons (e.g. spouse, minor child) that is includable or required to be clubbed with your income as per Section 64.

    www.incometax.gov.in - Schedule SPI
  12. Schedule EI
    You need to provide your details of exempt income i.e., income not to be included in total income or not chargeable to tax. The income types included in this schedule include interest, dividend, agricultural income, any other exempt income, income not chargeable to tax through DTAA and pass through income which is not chargeable to tax.
  13. Schedule SI
    You will be able to view the income that is chargeable to tax at special rates. The amount under various income types are taken from the amounts provided in the relevant Schedules i.e., Schedule OS, Schedule BFLA.
  14. Schedule PTI
    You need to provide details of pass through income received from business trust or investment fund as referred to in section 115UA or 115UB.

    www.incometax.gov.in - Schedule PTI
  15. Schedule Foreign Source Income (FSI)
    You need to report the details of income, which is accruing or arising from any source outside India. This schedule is available for residents only.

    www.incometax.gov.in - Schedule FSI
  16. Schedule TR
    You need to provide a summary of tax relief which is being claimed in India for taxes paid outside India in respect of each country. This schedule captures a summary of detailed information furnished in Schedule FSI.

    www.incometax.gov.in - Schedule TR
  17. Schedule FA
    You need to provide details of foreign asset or income from any source outside India. This schedule need not be filled up if you are Not Ordinarily Resident or a Non-Resident.

    www.incometax.gov.in - Schedule FA
  18. Schedule 5A & Schedule AL
    In Schedule 5A, you need to provide the information necessary for apportionment of income between husband and wife if you are governed by the system of community of property under the Portuguese Civil Code 1860.
    If your total income exceeds ₹50 lakh, it is mandatory to disclose the details of movable and immovable assets in Schedule AL along with liabilities incurred in relation to such assets. If you are a non-resident or resident but not ordinarily resident, only the details of assets located in India are to be mentioned.

    www.incometax.gov.in - Schedule AL
  19. Tax Paid
    Under Part B, verify all the auto populated rows from the details that you had entered in the schedules. Verify the tax paid details from the previous financial year.
  20. Login to efiling portal
    Login to the income tax efiling portal, i.e, the IT Portal 2.0

    www.incometaxgov.in-Login
  21. File Income Tax Return
    Click on eFile > Income Tax Returns > File Income Tax Return

    www.incometaxgov.in - File Income Tax Return
  22. Assessment Year and Mode
    Select the appropriate assessment year and select the online mode and click on proceed.
  23. ITR Form
    Select the appropriate ITR Form, in this case, ITR 2.

    www.incometax.gov.in - Select ITR 2
  24. Select the checkboxes
    Next, select the checkboxes applicable to your situation.

    www.incometax.gov.in - Checkboxes for ITR 2
  25. Review and File ITR
    Finally, review all the details that you had entered previously and pay the tax dues (if any) and submit the return. Once you submit the return, proceed to everify it to complete the process.

Structure of ITR-2

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details.
Filing StatusEmployer Category, Tax status, Residential status, Return filed under the section.
PART B-TIComputation of total incomeTotal Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.
PART B-TTIComputation of tax liability on total incomeThe Bank Account details, Verification, and TRP details (if any) are to be provided. 
Schedule ITDetails of Advance Tax and Self Assessment Tax PaymentsBSR code, Date of Deposit, Chalan number, Tax Paid
Schedule TDSTDS1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Tax Deducted, etc.
Schedule TDSTDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB)TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCSDetails of tax collected at sourceTAN of the collector, Name of Collector, Tax Collected, etc.
Schedule SDetails of Income from SalaryName and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HPDetails of Income from House PropertyDetails of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule CGCapital GainsDetails about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54,54B,54EC,54F,54GB.
Schedule OSIncome from Other SourcesA dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.
Schedule CYLADetails of income after set­off of current year lossesDetails of current year losses and its Inter Headset off
Schedule BFLADetails of income after Set off of Brought Forward Losses of earlier yearsDetails of brought forward losses set off against current year’s income, total brought forward losses set off.
Schedule CFLDetails of Losses to be carried forward to the future yearsTotal of earlier year losses, current year losses, Total of carried forward to future years.
Schedule VI-ADeductions under Chapter VI-ADeductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.
80GDetails of DonationsName of Donee, Address, City or District, State Code, PAN of Donee, Amount.
Schedule SPIThe income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of Rs. 1500 per child, to be included)Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SIIncome chargeable to income tax at special ratesDescription of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EIDetails of Exempt Income (Income not to be included in Total Income)Interest income, Dividend, Agricultural Income.
Schedule PTIDetails of Income from Business Trust or Investment Fund Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. 
Schedule FSIDetails of Income from outside India and tax reliefA country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A
Schedule TRSummary of tax relief claimed for taxes paid outside IndiaDetails of tax relief claimed
Schedule 5AInformation regarding the appointment of income between spouses governed by Portuguese Civil CodeName and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.
Schedule FADetails of Foreign Assets and Income from any source outside IndiaDetails of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.
Schedule ALDetails of Assets and LiabilitiesDetails of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.

Here’s a detailed checklist of documents you’ll need for a smooth income tax filing process:

Essential Documents:

  1. PAN (Permanent Account Number)
  2. Aadhaar Card
  3. Bank Account Details
  4. TDS Certificates
  5. Challan of Taxes Paid
  6. Details of Original Return (if filing a revised return)
  7. Details of Notice (if filing in response to a notice)

Documents Based on Type of Income:

For Salary Income:

  • Form 16/Salary Slips received from your employer
  • Pension Statement/Passbook

For House/Property Income:

  • Co-owner details (if applicable)
  • Address of the property
  • Interest certificates/Repayment certificate from a bank (for property loan)
  • Rent Agreement (for let-out property)

For Other Sources:

  • Savings/Current Account Statements/Passbook
  • Interest Certificates for deposits/bonds/NSC
  • PPF Account Statement/Passbook
  • Dividend warrants/counterfoils
  • Rent Agreement (for let-out machinery)
  • Details about receipts of any other income

For Capital Gains:

  • Sales & Purchase Deeds, stamp duty valuation (for land/building)
  • Details of improvement costs
  • Contract notes/stock ledgers/trading statement (for securities)
  • Cost of purchase, cost of improvement & sales receipts (for other capital assets)
  • Details of expenses incurred on the transfer of capital assets
  • Details of investments to claim exemptions
  • Capital gains deposit account details (if any)

Section 80 Deductions Documents:

  • PPF Account Statement/Passbook
  • Fixed Deposit Certificates/Statements
  • ELSS/ULIP/NSC Investment Details
  • Life Insurance Premium Receipts
  • Medical Insurance Premium Receipts
  • House/Property Loan Interest Certificate/Repayment Statement
  • Education Loan Interest Certificate/Repayment Statement
  • Tuition Fees Receipts
  • Donation Receipts

Sample ITR-2 Form for AY 2021-22

AY 2021-22 ITR 2 - Income from Capital Gains

Here are the major changes in ITR 2 for Assessment Years 2021-22 and 2020-21:

For AY 2021-22:

  1. Option to Choose Tax Regime: Taxpayers can opt between the old and new tax regimes based on their preference.
  2. Quarterly Breakdown for Dividend Income: Dividend income must be reported with quarterly breakdowns for accurate calculation of interest under Section 234C.

For AY 2020-21:

  1. Mandatory Filing for RNORs and Non-Resident Individuals: RNORs and non-resident individuals must file ITR 2 even if their income is below INR 50 lakh.
  2. Disclosure of High-Value Transactions: Taxpayers must disclose cash deposits exceeding INR 1 crore in current accounts, expenditure above INR 2 lakh on foreign travel, or expenditure above INR 1 lakh on electricity.
  3. Resident Individuals Owning Multiple Properties: Residents with more than one house property must file ITR 2.
  4. Ineligibility for Business and Profession Income: Taxpayers earning income from business and profession cannot file ITR 2.
  5. Disclosure of Company Details: Directors in a company or those holding unlisted equity investments must disclose the type of company.
  6. Separate Section for LTCG Calculation: A dedicated section, Section 112A, is introduced for calculating long-term capital gains on the sale of equity shares or units of a business trust liable to STT.

Read More: ITR 2A form for Multiple House Property Income [Discontinued]

Web Stories: ITR 2A form for Multiple House Property Income [Discontinued]

Official Income Tax Return filing website: https://incometaxindia.gov.in/

ITR 2A form for Multiple House Property Income [Discontinued]

ITR 2A form for Multiple House Property Income [Discontinued]

Important Keyword: HUF, Income Heads, ITR Form, ITR-2A.

ITR-2A form for Multiple House Property Income [Discontinued]

ITR-2A made its debut in the fiscal year 2014-15 (Assessment Year 2015-16), tailored specifically for individuals and Hindu Undivided Families (HUFs) with salary income and ownership of more than one house property. However, those with capital gains were ineligible to utilize this form. Regrettably, this form bid adieu starting from the fiscal year 2016-17 (Assessment Year 2017-18). Henceforth, taxpayers can file ITR-2 instead of ITR-2A.

Who Can File ITR-2A?

Individuals and HUFs with the following income sources are eligible:

  • Salary Income
  • Income from House Property (Single or multiple house properties)
  • Income from Other Sources
  • Agricultural/Exempt Income (without any limits)

Who Cannot File ITR-2A?

However, ITR-2A is not suitable for individuals or HUFs with the following income types:

  • Income from Capital Gains
  • Business or Profession Income
  • Income from Foreign Sources and/or possessing any foreign assets

Structure of ITR-2A

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details.
Filing StatusEmployer Category, Tax status, Residential status, Return filed under the section.
PART B-TIComputation of total incomeTotal of all the incomes. 
PART B-TTIComputation of tax liability on total incomeThe Bank Account details, Verification details. 
Schedule ITDetails of Advance Tax and Self Assessment Tax PaymentsBSR code, Date of Deposit, Chalan number, Tax Paid. 
Schedule TDSTDS1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Tax Deducted, etc.
Schedule TDSTDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A)TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule SDetails of Income from SalaryEmployer Details, Salary, Perquisites, Allowance, etc.
Schedule HPDetails of Income from House PropertyDetails of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule OSIncome from Other SourcesA dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games, etc.
Schedule CYLADetails of income after set­off of current year losses 
Schedule BFLADetails of income after Set off of Brought Forward Losses of earlier years 
Schedule CFLDetails of Losses to be carried forward to the future years 
Schedule VI-ADeductions under Chapter VI-ADeductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA etc.
80GDetails of donationsName of Donee, Address, City or District, State Code, PAN of Donee, Amount, etc.
Schedule SPIIncome of specified persons (spouse, minor child etc.) included in the income of the assessee (income of the minor child, in excess of Rs. 1500 per child, to be included)Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SIIncome chargeable to income tax at special ratesDescription of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EIDetails of Exempt Income (Income not to be included in Total Income)Interest income, Dividend, Agricultural Income, etc.
Schedule 5AInformation regarding the appointment of income between spouses governed by Portuguese Civil CodeName and PAN of spouse, income received under different heads, amount appointed in the hands of the spouse, TDS details, etc.

Here’s a comprehensive guide on the documents required and the filing process for ITR 2A:

Essential Documents:

  1. PAN (Permanent Account Number)
  2. Bank Account Details
  3. TDS Certificates
  4. Counterfoils of Taxes Paid
  5. Details of Original Return if Filing Revised Return
  6. Details of Notice if Filing in Response to Notice

Documents Based on Income Type:

For Salary Income:

  • Form-16 or Salary Slips received from your employer
  • Pension Statement/Passbook

For House/Property Income:

  • Address of the property
  • Co-owner details (if applicable)
  • Interest certificates/Repayment certificate from a bank (for property loan)
  • Rent Agreement (for let-out property)

For Other Sources:

  • Savings/Current Account Statements/Passbook
  • Interest certificates for deposits/bonds/NSC
  • PPF Account Statement/Passbook
  • Dividend warrants/counterfoils
  • Rent Agreement (for let-out machinery)
  • Details about receipts of any other incomes

Documents for Chapter VI-A Tax Breaks:

  • PPF Account Statement/Passbook
  • Fixed Deposit Certificates/Statements
  • Mutual Fund NAV Statements
  • ELSS/ULIP/NSC Investment Details
  • Life Insurance Premium Receipts
  • Medical Insurance Premium Receipts
  • House/Property Loan Interest Certificate/Repayment Statement
  • Donation Receipts

How to File ITR 2A?

Physical Submission:

  • Submit the ITR-2A in paper form or bar-coded return form.
  • Receive an acknowledgment stamped with submission details from the department.

Online/Electronic Submission:

  • Submit the ITR-2A online after digitally signing it.
  • Alternatively, submit the ITR-2A online and send the signed verification (ITR-V) to the Central Processing Center, Bangalore, within 120 days.
  • Or, opt for EVC to avoid sending the ITR-V and complete the process within three to five weeks.

Sample ITR-2A Form

Sample ITR 2A Form

Read More: AY 2021-22 ITR 3 Form for Income from Business or Profession

Web Stories: AY 2021-22 ITR 3 Form for Income from Business or Profession

Official Income Tax Return filing website: https://incometaxindia.gov.in/

AY 2021-22 ITR 3 Form for Income from Business or Profession

AY 2021-22 ITR 3 Form for Income from Business or Profession

Important Keyword: Business and Profession Income, Income Heads, ITR Form, ITR-3.

What is ITR-3 form?

The ITR-3 form is designed for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession. This form is also appropriate for those who receive income from a partnership firm or Limited Liability Partnership (LLP). Simply put, you need to file ITR 3 if your income falls under the category of “Profit or Gain of Business or Profession.” Additionally, it is used when a tax audit is required.

Up until FY 2018-19 (AY 2019-20), it wasn’t mandatory to file an Income Tax Return if your total income was below the basic exemption limit. However, the 2019 Budget introduced the seventh proviso to Section 139(1). According to this provision, taxpayers must file an ITR even if their total income does not exceed the basic exemption limit if they have engaged in certain high-value transactions. These transactions include:

  1. Depositing more than INR 1 crore in a current account
  2. Incurring foreign travel expenses exceeding INR 2 lakh
  3. Incurring electricity expenses over INR 1 lakh

Who Can File ITR-3?

The ITR-3 form is meant for individuals and Hindu Undivided Families (HUFs) who have income from various sources, including:

  • Partners in a Partnership Firm or LLP:
    • If you are a partner in a partnership firm or an LLP, you need to file ITR 3.
  • Income from Multiple Sources:
    • Individuals earning income from salary, house property, capital gains, and other sources, along with “Profits or Gains of Business or Profession,” must file ITR 3.
  • Non-Eligibility for Presumptive Taxation:
    • Those not eligible for the Presumptive Taxation Scheme under Section 44AD, 44ADA, or 44AE should use ITR 3.

Who Cannot File ITR-3?

The ITR-3 form cannot be used by certain entities, including:

  • Separate Legal Entities:
    • Partnership firms, LLPs, companies, and charitable trusts cannot file ITR-3. These entities have to use other specified forms suitable for their structure and income types.

Structure of ITR Form 3

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details, etc.
Filing StatusEmployer Category, Tax status, Residential status, Return filed under the section, etc.
PART B-TIComputation of total income 
PART B-TTIComputation of tax liability on total incomeThe Bank Account details, Verification and TRP details (if any) are to be provided here
Schedule ITDetails of Advance Tax and Self Assessment Tax PaymentsBSR code, Date of Deposit, Chalan number, Tax Paid
Schedule TDSTDS1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Tax Deducted, etc.
Schedule TDSTDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A)TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TDSTDS3: Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB)PAN & Name of the Buyer, TDS-certificated Number, TDS Amount, etc.
Schedule TCSDetails of Tax Collected at Source (TCS) [As per Form 27D issued by the collector]TDS/TCS Number of the Collector, Name of the Collector, Tax Collected, Amount being Claimed
Schedule SDetails of Income From SalaryName and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HPDetails of Income from House PropertyDetails of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule IFInformation regarding partnership firm in which you are a partnerName and PAN of the Firm, Whether the firm is liable to audit?, Percentage share in profit, Amount of share in the profit, Capital balance as on 31st March in the firm.
Schedule BPDetails of Income from Firm of which you are a partnerSalary, bonus, commission or remuneration, Interest received from the firm on capital, expenses, Net Income
Schedule CGCapital GainsDetails about the Short term and Long term capital gains, Sales consideration, Cost of Acquisition, Deductions under section 54, 54B, 54EC, 54F, 54GB, etc.
Schedule OSIncome from Other SourcesDividend, Interest, Rental Income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games, etc.
Schedule CYLADetails of income after set­off of current year losses 
Schedule BFLADetails of income after Set off of Brought Forward Losses of earlier years 
Schedule CFLDetails of Losses to be carried forward to the future years 
Schedule VI-ADeductions under Chapter VI-ADeductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA etc.
80GDetails of donationsName of Donee, Address, city or district, state code, PAN of Donee, amount, etc.
Schedule SPIThe income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of Rs. 1500 per child, to be included)Name and PAN of person, relationship, nature of income, amount
Schedule SIIncome chargeable to income tax at special ratesDescription of special rate income, Special rate, Income, Taxable income after adjusting min. chargeable to tax, Tax thereon
Schedule EIDetails of Exempt Income (Income not to be included in Total Income)Interest income, Dividend, Agricultural income, etc.
Schedule FSIDetails of Income from outside India and tax reliefCountry, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A.
Schedule TRSummary of tax relief claimed for taxes paid outside IndiaDetails of tax relief claimed
Schedule 5AInformation regarding the appointment of income between spouses governed by Portuguese Civil CodeName and PAN of the spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details, etc.
Schedule FADetails of Foreign Assets and Income from any source outside IndiaDetails of foreign bank accounts, financial interest in any entities, Immovable properties, Other Capital Assets, etc.
Schedule ALAsset and Liability at the end of the year (other than those included in PART A – BS of the return of the firm in which you are a partner) [Applicable in a case where total income exceeds Rs. 25 Lakh]Particulars of Assets and Liability

Filing your income tax return (ITR) is a crucial annual task, and understanding the process can sometimes feel overwhelming. To simplify things, let’s break down the essentials step by step.

Part A: General

When filling out your ITR-3 form, attention to detail is key. Ensure every section is completed as indicated. If a particular schedule or item doesn’t apply to you, mark it with “NA” or “Nil.” For negative figures or losses, precede the figure with a hyphen (-). All figures should be rounded off to the nearest rupee, but when it comes to total income, round off to the nearest multiple of ten rupees.

Sequence for Filling Parts and Schedules

Follow this sequence for a smooth filing process:

  1. Part A- General
  2. Schedules
  3. Part B-TI and Part B-TTI
  4. Verification
  5. Details relating to TRP (Tax Return Preparer) and counter signature of TRP if applicable

Documents Needed to File ITR-3 Form

Gather these essential documents before starting:

  • PAN (Permanent Account Number)
  • Bank Account Details
  • TDS Certificates
  • Counterfoils of Taxes Paid
  • Details of Original Return if Filing Revised Return
  • Details of Notice if Filing in Response to a Notice

Additionally, prepare documents based on your income type:

  • Salary Income: Form-16 or Salary Slips from your employer, and Pension Statement/Passbook.
  • House/Property Income: Property address, co-owner details (if applicable), loan interest certificates (if applicable), rent agreement (for let-out property).
  • Other Sources: Savings/current account statements, interest certificates, dividend warrants, rent agreements (for let-out machinery), and details of any other income receipts.
  • Capital Gains: Documents such as sales and purchase deeds, contract notes, cost of purchase, improvement costs, and details of expenses incurred on the transfer of capital assets.

How to File ITR-3?

You have two options: physical submission or electronic filing. Since the financial year 2013-14, electronic filing has been compulsory for taxpayers with incomes exceeding INR 5 lakhs.

For Physical Submission:

  • Submit the ITR-3 in paper form or a bar-coded return form.
  • The department will provide you with an acknowledgment stamped with the submission details.

For Online/Electronic Submission:

  • Submit the ITR-3 online after digitally signing it, or submit it online and send the signed verification (ITR-V) to the Central Processing Center, Bangalore, within 120 days.
  • Alternatively, use the e-verification option to avoid sending the ITR-V and streamline the process.

Sample ITR 3 Form AY 2021-22

AY 2021-22 ITR 3 - Income from Business and Profession

Major Changes in ITR 2 for AY 2021-22

Taxpayers now have the option to choose between the old and new tax regimes. Additionally, dividend income must be added with quarterly breakdowns for accurate calculation of interest under Section 234C.

Filing your ITR shouldn’t be daunting. With this simplified guide, you’re equipped to navigate the process smoothly.

Read More: AY 2021-22 ITR 4 for Presumptive Taxation Scheme

Web Stories: AY 2021-22 ITR 4 for Presumptive Taxation Scheme

Official Income Tax Return filing website: https://incometaxindia.gov.in/

AY 2021-22 ITR-4 for Presumptive Taxation Scheme

AY 2021-22 ITR-4 for Presumptive Taxation Scheme

Important Keyword: Income Heads, ITR Documents, ITR-4, Presumptive Tax.

What is ITR-4 form?

The ITR-4 form is designed for taxpayers who have chosen the presumptive taxation scheme under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act. This scheme is intended to simplify the tax filing process for small businesses and professionals by allowing them to declare income at a prescribed rate without maintaining detailed books of accounts.

However, if your business turnover exceeds INR 2 crores (or INR 50 lakh for professionals), you will need to file ITR 3 instead of ITR 4. This is because the presumptive taxation scheme is only applicable within these turnover limits. When your income surpasses these thresholds, more detailed reporting is required, which is accommodated by ITR 3.

To file your tax returns, you can download the appropriate income tax utility from the official income tax department website. This tool will help you in filling out and submitting your ITR form accurately.

Until FY 2018-19 (AY 2019-20), it wasn’t mandatory to file an Income Tax Return if your total income was below the basic exemption limit. However, with Budget 2019, a new provision was added to Section 139(1), making it compulsory to file an ITR if you engaged in certain high-value transactions, even if your total income is below the exemption threshold. These transactions include:

  1. Depositing more than INR 1 crore in a current account.
  2. Incurring foreign travel expenses exceeding INR 2 lakh.
  3. Spending over INR 1 lakh on electricity.

Who Can File ITR-4?

The ITR 4 form is suitable for Individuals, Hindu Undivided Families (HUFs), and Partnership firms (other than LLPs) whose total income includes:

  • Income from a business eligible for the Presumptive Taxation Scheme.
  • Professional or freelancing income eligible for the Presumptive Taxation Scheme.
  • Income from salary or pension.
  • Income from one house property (excluding cases with carry forward losses).
  • Income from other sources (excluding lottery winnings and income from race horses).

Additionally, HUFs and non-LLP firms with total incomes up to INR 50 lakh can use this form.

Who Cannot File ITR-4?

The ITR-4 form is not applicable if you have:

  • Income from more than one house property.
  • Winnings from lotteries or race horses.
  • Income from capital gains.
  • Agricultural income exceeding INR 5000.
  • Income from speculative business.
  • Losses brought forward or carried forward from “Income from house property”.
  • Income from foreign sources or any foreign assets.

Structure of ITR Form Number 4

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details, etc.
Filing StatusEmployer Category, Tax status, Residential status, Return filed u/s, etc.
PART BIncome And DeductionIncome from Business, Salary, Pension, House Property, Other Sources
PART CDeduction under Chapter VI-ADeductions under section 80C, 80D, 80E, 80G, 80TTA, etc.
PART DTax computationBreaking up Tax computation, Interest, Cess, Rebate, etc.
Schedule NOB BPNature of Business, If more than one business, indicates the three main activities/ productsNature of Business, Computation of Presumptive Income under 44AD, 44ADA and 44AE, Financial Particulars of Business
Schedule ALDetails of Assets and LiabilitiesDetails of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP, etc.
Schedule ITDetails of Advance Tax and Self-Assessment Tax PaymentsBSR Code, Date of Deposit, Chalan Number, Tax Paid
Schedule TCSDetails of Tax Collected at sourcesTax collection Account Number, Name of Collector, Tax Collected, Amount Claimed
Tax DetailsTDS1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Ted Deducted, etc.
Tax DetailsTDS2: Details of Tax Deducted at sources from Income other than SalaryTAN, Name of Deductor, Year of Deduction, Tax deducted, etc.

To ensure a smooth filing process for ITR 4, gather the following essential documents based on your relevant incomes:

Essential Documents:

  • PAN (Permanent Account Number)
  • Bank Account Details
  • TDS Certificates
  • Counterfoils of Taxes Paid
  • Details of Original Return (if filing a revised return)
  • Details of Notice (if filing in response to a notice)
  • Electricity Bill (if expenses exceed INR 1 lakh)
  • Travel Expenses (if expenses exceed INR 2 lakh)
  • Bank Deposits (if deposits are INR 1 crore or above)

Documents Based on Type of Income:

Salary Income:
  • Form 16 or Salary Slips from your employer
  • Pension Statement/Passbook
House/Property Income:
  • Address of the property
  • Co-owner details (if property is co-owned)
  • Interest Certificate/Repayment Certificate from the bank (for house/property loan)
  • Rent Agreement (for let-out property)
Business/Profession:
  • Profit & Loss Statement
  • Balance Sheet
  • Supporting documents for expenses incurred
  • Bank Account Statement/Passbook
  • Cash Register
  • Any other required documents to maintain business & professional books of accounts
Other Sources:
  • Savings/Current Account Statements/Passbook
  • Interest Certificates for Deposits/Bonds/NSC
  • PPF Account Statement/Passbook
  • Dividend Warrants/Counterfoils
  • Rent Agreement (for let-out machinery)
  • Details of any other income receipts
Documents for Tax Breaks:
  • PPF Account Statement/Passbook
  • Fixed Deposit Certificates/Statements
  • Mutual Fund NAV Statements
  • ELSS/ULIP/NSC Investment Details
  • Life Insurance Premium Receipts
  • Medical Insurance Premium Receipts
  • Preventive Health Checkup Details
  • Pension Fund/National Pension Scheme Statement
  • House/Property Loan Interest Certificate/Repayment Statement
  • Education Loan Interest Certificate/Repayment Statement
  • Tuition Fees Receipts
  • Donation Receipts
  • Certificate from Specified Medical Authorities (in case of disability)
  • Receipts/Proof of any other tax-saving investments/contributions
ITR-4 Form Breakdown:

The ITR-4 form consists of six sections:

  1. Personal Information
  2. Gross Total Income
  3. Disclosures
  4. Total Deductions
  5. Taxes Paid
  6. Total Tax Liability

How to File the ITR-4:

You can file your ITR 4 either physically or electronically. Since FY 2013-14, electronic filing is mandatory for taxpayers who:

  • Have an income of more than INR 5 lakhs
  • Own assets outside India, including financial interests in any entity, or have signing authority in any account outside India
  • Claim relief under Section 90/90A/91, requiring Schedule FSI and Schedule TR to be completed

Physical Submission:

  • Submit the ITR 4 in paper form or as a bar-coded return form duly filled.
  • The income tax department will provide you with an acknowledgment and a stamped submission copy.

File ITR-4 Online using Income Tax Website

  • Log in to the e-filing portal using your user ID & password.
www.incometax.gov.in - Login
  • Click on e-file > Income Tax Returns > File Income Tax Return from the dashboard
www.incometax.gov.in - File Income Tax Return
  • Select the appropriate assessment year
www.incometax.gov.in - Assessment Year
  • Select the online mode of filing the ITR
www.incometax.gov.in - File ITR online option
  • Select the applicable status and click on proceed
www.incometax.gov.in - Status
  • Select the ITR 4 option from the list provided
www.incometax.gov.in - Choose ITR 4 option
  • Read the instructions and click on the option to proceed
www.incometax.gov.in - Lets Get Started
  • Select the options that are applicable to your particular situation and click on proceed
www.incometax.gov.in - Answer Income Source Details
  • Review the prefilled data and click on proceed
www.incometax.gov.in - Review Prefilled Data
  • Enter your income and deduction details in the different section
www.incometax.gov.in - Validate Prefilled Return
  • You will be shown a summary of your tax computation based on the details you provided. If there is tax liability payable based on the computation, you will receive the option to pay instantly or pay later
www.incometax.gov.in - Tax Liability
  • After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page
www.incometax.gov.in - Preview Return
  •  Once validated, on your Preview and Submit your Return page, click Proceed to Verification
www.incometax.gov.in - Preview and Submit Return
  •  On the Complete your Verification page, select your preferred option and click Continue
www.incometax.gov.in - Complete Verification

ITR 4 for AY 2021-22

AY 2021-22 ITR 4 Presumptive Taxation Scheme

Major Changes in ITR 2 for AY 2021-22

  • Old Tax Regime: This regime allows various deductions and exemptions (like HRA, 80C, 80D, etc.) but comes with higher tax rates.
  • New Tax Regime: This regime offers lower tax rates but does not permit most deductions and exemptions. Taxpayers need to evaluate their financial situations to choose the most beneficial option.

Read More: Form 16: TDS Certificate issued by Employer

Web Stories: Form 16: TDS Certificate issued by Employer

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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