Income Tax Return (ITR) (unit 3)
Meaning
An Income Tax Return is a form used by a taxpayer to report their income, deductions, taxes paid, and
refund claim (if any) to the Income Tax Department. It helps the government assess whether the
taxpayer has paid the correct amount of tax.
Particulars to be Furnished in ITR
1. When filing an Income Tax Return, the following information must be included:
2. Personal information like name, PAN number, Aadhaar number, address, and contact details
3. Residential status (Resident, Non-resident, etc.)
4. Sources of income – like salary, house rent, business, capital gains, or other sources
5. Exempt income (such as agricultural income, HRA exemption, etc.)
6. Deductions claimed under various sections (like 80C for LIC, PPF, 80G for donations, etc.)
7. Taxes already paid – TDS, advance tax, or self-assessment tax
8. Bank details – for receiving refund if eligible
9. Verification – a declaration confirming the accuracy of information provided
Who Should File an Income Tax Return?
You should file an income tax return if:
1. Your total income is more than the basic exemption limit, which depends on your age.
2. You are a company or a firm, regardless of your income.
3. You want to claim a refund of excess tax deducted.
4. You are a resident and have assets or a signing authority in a foreign country.
5. You have earned foreign income.
6. You deposited more than ₹1 crore in a bank account, spent over ₹2 lakh on foreign travel, or
paid over ₹1 lakh in electricity bills in a year.
Types of ITR Forms
There are different types of ITR forms depending on the nature and amount of income:
1. ITR-1 (Sahaj) is for residents with income from salary, one house property, and other sources up
to ₹50 lakh.
2. ITR-2 is for individuals or HUFs having income from more than one house, capital gains, or
foreign income.
3. ITR-3 is used by individuals or HUFs who have income from business or profession.
4. ITR-4 (Sugam) is for people choosing presumptive taxation (like small businesses or
professionals).
5. ITR-5 is for partnership firms and LLPs.
6. ITR-6 is for companies (except those claiming exemption under Section 11).
7. ITR-7 is for trusts, political parties, and institutions filing under special sections like 139(4A) to
139(4D).
Types of Income Tax Returns under Section 139
1. Original or Voluntary Return – Section 139(1)
This return is filed within the due date by any person whose income is taxable or who wants to claim a
refund. If filed on time, you can carry forward losses and get full benefits under the law.
2. Belated Return – Section 139(4)
If you miss the deadline to file the return under Section 139(1), you can still file it later as a belated
return. This return can be filed after the due date but before 31st December of the assessment year.
However, a late filing fee may apply, and certain losses (except house property loss) cannot be carried
forward.
3. Revised Return – Section 139(5)
If you filed your return (original or belated) and later realize that you made a mistake, you can revise
your return.
You can file a revised return any time before 31st December of the assessment year. It allows you to
correct errors or omissions in the original return.
4. Defective Return – Section 139(9)
If your return is found to be incomplete or incorrect, the tax department may declare it as a defective
return.
You will receive a notice to correct the defect within 15 days. If you fail to correct it, your return will be
treated as invalid, meaning it will be considered as not filed at all.
5. Return of Loss – Section 139(3)
If you have incurred a loss under head “business/profession” or “capital gains”, you should file a return
within the due date under Section 139(1) to carry forward the loss.
If filed late, the loss (except house property loss) cannot be carried forward. This helps in adjusting the
loss in future years to reduce tax liability.
Conclusion
Filing your Income Tax Return is not just a legal obligation—it also offers financial benefits like claiming
refunds, carrying forward losses, and serving as income proof for loans and visas. The Income Tax Act
allows you to file, revise, or even submit a return in case of losses or late filings—each under specific
sections of Section 139.
