Normally, the due date for completion of filing Income Tax Return (ITR) is July 31 of the relevant Assessment Year (AY) for the assessees, whose income needn’t be audited. But the COVID-19 pandemic has derailed the ITR filing process this year along with hitting the economic activities.
In fact, only three ITR Forms – ITR 1 (Sahaj), ITR 2 and ITR 4 (Sugam) – are available for e-filing till date.
So, only salaried individuals and people having presumptive income from a limited number of business and profession, subject to some conditions, may e-file their return of income.
Check the following eligibility conditions to know which of the three ITR Forms will be applicable to you.
The ITR 1 Form is for Individuals being a Resident (other than not Ordinarily Resident) having total income up to Rs 50 lakh, having income from salaries, one house property, other sources like interest etc and agricultural income up to Rs 5,000.
However, this Form is not for an individual who is either Director in a company or has invested in Unlisted Equity Shares.
The ITR 2 Form is for Individuals and HUFs not having income from profits and gains of business or profession. So, the salaried individuals, who are not eligible to file ITR 1, have to file ITR-2.
The ITR 4 Form is meant for Individuals, HUFs and Firms (other than LLP) being a Resident having total income up to Rs 50 lakh and having income from business and profession, which is computed under sections 44AD, 44ADA or 44AE.
However, an Individual, who is either Director in a company or has invested in Unlisted Equity Shares, can’t use this Form.
Section 44AD provides relief to small taxpayers engaged in any business. But the taxpayers engaged in the following businesses can’t get the relief:
However, the relief u/s 44AD is not available to taxpayers engaged in the business of (a) plying, hiring or leasing goods carriages referred to in sections 44AE; (b) carrying on any agency business; (c) earning income in the nature of commission or brokerage and (d) total business turnover or gross receipts exceeding Rs 2 crore.
A person carrying on profession, who needs to maintain books of accounts as referred to in section 44AA(1) is also not eligible for presumptive taxation scheme under section 44AD.
As per section 44ADA, a person Resident in India, carrying on specified profession may get the benefits of presumptive taxation scheme, provided the gross receipts do not exceed Rs 50 lakh in a financial year.
The specified professions include – (1) Legal, (2) Medical, (3) Engineering or architectural, (4) Accountancy, (5) Technical consultancy, (6) Interior decoration and (7) Any other profession as notified by the Central Board of Direct Taxes (CBDT).
The section 44AE provides relief to a person who owns not more than ten goods carriages at any time during the previous year and who is engaged in the business of plying, hiring or leasing such goods carriages.
