In India, filing a Personal Tax Return is an essential financial responsibility for individuals to report their income and taxes to the government. Governed by the Income Tax Act of 1961, this process encompasses various forms, notably ITR-1 (Sahaj) and ITR-2. While ITR-1 is tailored for salaried individuals earning up to Rs. 50 lakhs annually, ITR-2 is designed for those with additional income streams beyond salary, such as property or foreign earnings, yet excluding business or professional income.

ASK Associates offers a streamlined and efficient approach to managing Personal Income Tax filings in India. With a dedicated team of professionals, they provide personalized guidance through every stage of the tax filing journey, ensuring a smooth and stress-free process for fulfilling tax obligations.

Filing Income Tax Returns – ITR Filing in India

In India, the mandate for individuals and businesses to submit income tax returns arises when their Gross Total Income (GTI) exceeds Rs. 3 lakhs, with incomes below this threshold being exempt. This annual requirement must be completed within a set deadline. An array of income tax return forms caters to the diverse needs of taxpayers, including individuals and corporate entities.

Return Type:

• ITR-1: For Individuals with income up to Rs. 50 lakhs, earned through salary or pension and having only one house property.
• ITR-2: For NRIs, directors of companies, shareholders of private companies, or those with income from sources other than salary.

Annual income tax return filings are obligatory for Individuals, NRIs, partnership firms, LLPs, companies, and Trusts. Individuals and NRIs must file returns if their income exceeds Rs. 2.5 lakhs per annum. Regardless of income or loss, Proprietorship and partnership firms must file returns. Similarly, all companies and LLPs must file returns, irrespective of turnover or profit.

ASK Associates provides income tax filing services with dedicated Tax Expert support. You can simply upload your Form-16, and their experts will handle the rest, providing you with an acknowledgment within 1 – 2 business days.

What is Personal Tax Return Filing in India?

Personal tax return filing in India is the process through which individuals furnish their annual income details, deductions, and taxes paid to the Income Tax Department. This is facilitated through specific forms known as Income Tax Returns (ITRs), which vary based on the individual’s income sources, such as salary, business income, capital gains, and other sources. Filing a tax return ensures the accurate reporting of income and payment of due taxes to the government. It’s mandatory for those whose income exceeds the basic exemption limit set for the financial year. The entire income tax filing process can be conveniently completed online via the e-filing portal.

Who Should File a Personal Tax Return?

Personal income tax return filing is mandatory for:

• Salaried Individuals: Those whose salary income exceeds the tax-exempt threshold.
• Individuals and Hindu Undivided Families (HUFs): Those with income from sources like investments, property, or capital gains, pushing their total income above the tax-free limit.

ITR Forms For Personal Tax Filing

The Income Tax Department of India provides various ITR forms, from ITR-1 to ITR-7, tailored to different taxpayers based on income sources, amount, and complexity. For Personal Income Tax Filing, the following two forms are commonly used:

• ITR-1 (SAHAJ)
• ITR-2

ITR-1 Sahaj Form:
Specially designed to simplify tax filing for individual taxpayers with a total income of less than Rs. 50 lakhs, ITR-1 Sahaj accommodates income from sources such as salary or pension, a single-house property, and other miscellaneous sources.

Eligibility for Filing ITR-1:
ITR-1 income tax filing is intended for Resident Individuals meeting the following criteria:

• Income Limit: Total income during the financial year should be Rs. 50 lakhs.
• Applicable Income Types: Individuals earning income from salary, one house property, family pension, and other specified sources.

ITR-2:
ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) with income that excludes profits and gains from business or professional activities. It caters to those with diverse income sources, excluding business or professional earnings.

Who Should File ITR-2?
Eligible individuals for ITR-2 income tax filing include those with income from various sources like salary or pension, multiple house properties, capital gains, foreign income or assets, agricultural income, and directorial positions.