Income Tax Returns: Check Revised Instructions for Form 2,3,5,6,7

Check form-wise instructions issued by the Income Tax Department to fill the ITRs.

The last date to file your income tax returns is 31 July. 

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To help taxpayers and make income tax filing experience smooth, the Income Tax Department has made significant changes to the taxation structure. These changes will make the taxation system automated and interlink other fiscal systems with it for better financial analysis.

Below are the form-wise instructions issued by the Income Tax Department to fill the ITRs:

ITR-2

Eligibility – For an Individual or HUF not eligible to file ITR-1 and not having income from business or profession.

ITR-3

Eligibility – For an Individual or HUF not eligible to file ITR-1, ITR2 or ITR-4 and having income from business or profession.

Filing Instruction – In case of an assessee, whose accounts are liable to be audited under Section 44AB, it is mandatory to file the digitally signed return. In case of an assessee who is required to furnish audit report under Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E, 115JB or 115JC, such a report is to be furnished electronically on or before the date of filing the ITR.

TR-5

Eligibility – This form can be used by person 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 deceased person, Estate of insolvent, Business trust, Investment fund.

A person who is required to file ITR u/s 139(4A) or 139(4B) or 139(4C) or 139(4D) cannot file ITR-5.

Filing instruction – In case of an assessee whose accounts are liable to be audited under Section 44AB, it is mandatory to file the digitally-signed return. In case of an assessee who is required to furnish audit report under Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA(1), 80LA(1A), 92E, 115JB or 115JC, such a report is to be furnished electronically on or before the date of filing ITR.

ITR-6

Eligibility – This ITR form can be used by companies as per Section 2(17) of the Income Tax Act. This form is filed by companies other than those required to file the return in Form ITR-7.

As per Section 2(17) of the Income Tax Act, a company means an Indian Company, body corporate incorporated by or under the laws of country outside India, any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the board to be company etc.

Manner of filing and verification – 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.

ITR-7

Eligibility – This return form can be used by persons, including companies required to furnish return under Sections 139(4A), 139(4B), 139(4C) or 139(4D).

Category of persons whose income is exempt u/s 10 and who are not mandatorily required to file ITR may use this form for filing return, such as Local authority u/s 10(20), Regimental fund or Non-public fund established by the Armed forces of the Union u/s 10(23AA), etc.

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 an audit report under Sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23)(via), 12A(1)(b), 92E, such a report is to be furnished electronically on or before the date of filing ITR. The 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.

Basic exemption limit for Annual Year 2020-21 for:

• Resident Individual who is 60 years old or more but less than 80 years at any time during the previous year is Rs 3,00,000
• For Resident Individual who is 80 years old or more at any time during the previous year is Rs 5,00,000
• Any other Individual or HUF is Rs 2,50,000

Exception to above: (applicable for ITR 2 and 3)

If a person whose total income before allowing deductions under Chapter VI-A or deduction of capital gains (54 to 54GB) does not exceed the basic exemption limit but who fulfills any one of the following conditions is mandatory to file ITR as per seventh proviso to Section 139(1):

• Deposit of amount in current accounts exceeds Rs 1 crore during the previous year
• Expenditure on travel to foreign country for himself or any other person exceeds Rs 2 lakh during the previous year
• Expenditure on consumption of electricity exceeds Rs 1 lakh during the previous year.