Income tax return deadline extended to 31st AugustThe Income Tax Department has extended the deadline for filing returns from 31st July to 31st August. The deadline of 31st July applies to individual assessees who are not subject to audit or who are not partners in firms that have to be audited.

The audit requirement is applicable to people with business turnover above Rs 1 crore or professionals with gross receipts above Rs 50 lakh as well as those who have opted for ‘presumptive taxation’ under Section 44AD, if the actual income is lower than the presumptive income. Such persons have to file their returns by 30th September.

Note that the above income tax deadlines pertain to the financial year 2017-18. A new provision in the Income Tax Act (Section 234F) introduced penalties for missing the deadline. Anyone filing after the deadline but before 31st December would have to pay a penalty of Rs 5,000. Anyone filing after 31st December but before 31st March would have to pay a penalty of Rs 10,000. After 31st March, even a late income tax return cannot be filed.

However, if the individual’s income is less than Rs 5 lakh, the maximum penalty in both cases would be restricted to Rs 1,000.

Note that the type of Income Tax Form you have to fill up to file your return changes according to the types of income you have. Here are the basics:

  1. ITR 1 (Sahaj): This form is applicable to individuals with income below 50 lakhs who have income only from salary, pension, one house property and other income like bank interest. However individuals who have income from capital gains, business income or have foreign assets will not be eligible to file ITR 1 (Sahaj).
  2. ITR 2: This form applies to individuals with income above 50 lakhs or income from capital gains or those who have foreign assets or more than one house property. Mutual Fund investors typically have (short term or long term) capital gains and will have to fill up this form.
  3. ITR 3: This form applies to individuals with profits and gains from business and profession in addition to other types of incomes like salary or capital gains
  4. ITR 4 (Sugam): This form applies to resident individuals who have opted for presumptive taxation. Presumptive taxation is a scheme will ‘presumes’ a certain level of profits based on an individual’s business turnover (revenue) and applies the relevant tax rate to the same. It simplifies tax filing for some individuals with income from business and profession.
  5. ITR 5: This form applies to firms, Limited Liability Partnerships (LLPs), Private Discretionary Trusts, Cooperative Society, Local Authority or AOP/BOI.
  6. ITR 6: This form applies to companies who are required to maintain balance sheets and profit and loss accounts as per the Companies Act.
  7. ITR 7: This form applies to trusts, political parties, mutual funds, securitization trusts etc
Author
Staff Writer

This article is written by RupeeIQ editorial staff.