Filing Income Tax Returns In India- for Residents and NRIs

The Indian government needs money for spending and its development activities collected in the form of taxes and income tax returns are the biggest source of income for the Indian government.

NRI Income tax returns

As per the latest data released by the Indian Income Tax Department, of 8.6 lakh Doctors in the country, only 4.2 lakh of Doctors pay income tax. 2.6 lakh Lawyers are taxpayers from 13 lakh Lawyers in the country and only 1 lakh Chartered Accountants are taxpayers from 2.8 lakh Chartered Accountants. So, there seems to be a huge gap that the Government might try to increase the number of taxpayers and income, in the coming years. This requires a brief review of laws and provisions relating to the submission of income tax returns in our country.

Taxable Income

In India, the entire financial year income is beaten together under the following five heads, namely

1. Income from Salaries,

2. Income from Home Property,

3. Income from Business / Profession,

4. Income from Capital Gains and

5. Income from Other Sources (For those income not covered above 4 heads).

Income Tax Return Requirements

Under the provisions of the Indian Income Tax Act, if a person’s income exceeds the basic exemption limit, the submission of Income Tax Returns (ITR) is required. However, in cases where a person has assets or financial interests in an entity located outside India or he signs authority in a foreign bank account, filing Income Tax Returns (ITRs) is mandatory even if income is under limiting exceptions.

List Of Income Tax Returns Applicable

S. NO. ITR Form Applicable For The Category
1. ITR 1 For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh.
2. ITR 2 For Individuals and HUFs not carrying out business or profession under any proprietorship.
3. ITR 3 For individuals and HUFs having income from a proprietary business or profession.
4. ITR 4 For presumptive income from Business & Profession.
5. ITR 5 For persons other than:-
(i) Individual,
(ii) HUF,
(iii) Company and
(iv) Person filing Form ITR-7.
6. ITR 6 For Companies other than companies claiming exemption under section 11.
7. ITR 7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).

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What is meant by tax elasticity?

What is meant by tax elasticity in the financial sector?

Tax revenue is the proportion of the tax revenue that has been revised to the GDP per capita.

This means the above statement means how much tax revenue will increase without any change in the tax rate (increase or decrease) with the GDP ratio.

Consequently, the tax exemption shows the financial performance of the government and the ‘joy’ of the government (tax revenue). This indicates a higher dependency on tax revenue for GDP growth.

Tax elasticity price will increase the price before the concept of elasticity or the purchase of an item incremental price (ie: buyers before buying an item or before finding an alternate source). Except, in this case, the question can increase tax increase before it changes behaviour.

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ITR filing with audit report deadline extended

ITR filing with audit report deadline extended: CBDT extends deadline for filing ITRs with audit reports to Oct 31, 2018

ITR Audit

 

Those with turnover exceeding Rs 1 cr in business or whose gross professional income is over Rs 50 lakh need to get a tax audit done.

The government, on Monday, extended a two-week deadline to file an income tax return (ITR) with an audit report for the 2017-18 financial year (AY 2018-19). Such taxpayers now have until October 31 to file their returns.

This is a second extension by the Direct Tax Center (CBDT) within two weeks. It previously extended the last date for filing an ITR for taxpayers who were asked to submit their returns along with audit reports from 30 September to 15 October 2018.

Taxpayers with a turnover exceeding Rs 1 crore in business (not choosing an alleged taxation scheme) or whose gross professional income is more than Rs 50 lakh needs to get a tax audit done.

CBDT extends the filing date for Income Tax Returns and Audit Reports from 15 October 2018 to 31 October

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