What is ITR Filing?
ITR, also known as Income Tax Return, is a form which an assessee or a taxpayer has to file mentioning his income earned and the tax which is applicable to him to the Income Tax Department. Tax is extremely important for the development of the country for all the public expenditure and thus every person must file the tax which he has to. The Tax Department has declared and issued 7 different forms, namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. These forms are divided in accordance with the type and sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to, for example, individuals, HUF, Company, etc and are online ITR filing services
In India, it becomes necessary and mandatory for ITR filing online, if any of the following which is mentioned below are applicable to you. These conditions are:
If the gross annual income ranges from Rs. 2.5 lacs to Rs. 5 lacs, depending on the different age categories.
If there is more than one source of income such as house property, Capital gains, etc.
If in the financial year, you have invested and earned from foreign assets.
In case if the taxpayer is either a firm or a Company, the ITR has to be filled necessarily.
If you want to apply for a loan or visa, it is required
If there is a need to claim an income tax refund from the department.
What is ITR 4 or Sugam
Any individual or HUF or Partnership firm (other than LLPs) who are residents who have an income coming from a business or profession. This is also inclusive of the of those who opt the presumptive income scheme as per sections 44AD, 44ADA, 44AE of the Income Tax Act. But in case if the business turnover exceeds 2 crores, then the taxpayer has to file the ITR 3.
Who are not eligible
If the following conditions are met, then you are not allowed to file the ITR 4 FORM
If the total income exceeds an amount of 50 Lacs
If the income comes from more than one household property
If you have any income source from outside India
If you own a foreign asset
If you are the director of any Company
If there is a foreign asset or a foreign source of income