Most people are aware that the payment of taxes is the responsibility of every Indian citizen, subject to the tax* bracket they fall under. And to make this even more convenient, one can now easily pay their taxes and also file their income tax* returns online.
 

Different categories of taxpayers can now file their taxes by downloading and filling their respective income tax* returns forms, also known as ITR forms, which are available on the official website of the Income Tax Department of India. To help you understand this better, here is a brief guide on filing tax* returns for businesses, proprietorships, salaried individuals and self-employed individuals.
 

What is ITR Filing?
 

Income Tax Returns or ITR filing is the process where you need to fill out the income tax* form that enables you to declare the taxes you have paid for the current year as per your income tax slab. There are 7 different ITR forms: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7. This form, to be filled by the respective category of taxpayers, reports the income, expenses and other important tax* information to the tax* authorities. Taxpayers should determine the type of ITR form they have to fill before filing the returns, and the ITR forms are based on the income of the taxpayers.
 

ITR Filing for Salaried Individuals
 

To file ITR as a salaried individual or professional income, you need access to a computer to download the ITR-1 Sahaj. Here is how you can proceed:
 

• Go to the Income Tax Department’s official website  https://www.incometax.gov.in/iec/foportal
• Access your account with your PAN card, password, and a captcha code.
• Go to the "e-File" menu and select "Income Tax Return".
• After clicking the "Income Tax Return" link, you will be able to see your PAN value. Now choose the assessment year, the ITR form number and the filing type "Original/Revised Return."
• Choose “Prepare and Submit Online” mode and fill up the ITR form.
• Select a verification method and click the “Preview and Submit Button”.
• You can now check and view the uploaded file.
   

ITR Filing for Business and Profession
 

Every company, regardless of their business activities during a financial year, have to file their income tax* returns, even if they have suffered a loss. Partnership firms file a NIL income tax* return before the due date.
 

But this is not the case for self-employed professional income; if they do not have any activities to show for during the financial year, self-employed professionals need not file income tax* returns with the self-employed ITR form for that particular financial year.
 

Filing income tax* returns for a business, a company or for the self-employed needs access to a computer to download the form ITR-4 Sugam. Below are the steps to follow if you want to complete the process:
 

Online ITR for Business Income
 

Only the ITR-4 can be filed online, for which you need to understand the following steps. When filling out the form online, you will need to directly provide the information on the form before submitting it. Individuals and self-employed persons can file their returns using this ITR form.
 

• Go to the official website for income tax* e-filing https://www.incometax.gov.in/iec/foportal for the filing of ITR-4.
• Access your account with your PAN, password, and a captcha code.
• Under the "e-file" menu, select "Income Tax Return”.
• The page will fill in your PAN details. You will need to provide the assessment year, the ITR form number, the filing type - "Original/Revised Return" and the submission mode - "Prepare and Submit Online."
• Click on “Continue.”
• Go through the instructions and then fill up the ITR-4 form. Keep clicking the "Save Draft" button from time to time to save the details.
• Once this step is completed, select a verification option as per your preference.
• Select the "Preview and Submit” button.
• Recheck and verify all the data that you have provided.
• Submit the ITR form.
• Once your tax* returns have been verified online, you will be able to see your ITR file on your account.
   

Documents for Filing ITR for Business
 

If you are a businessman, a company or are self-employed, the following documents will be needed to file your ITR.
 

• Aadhaar card
• PAN card
• TDS certificate
• Loan documents for claiming rebates
• The financial year’s balance sheet
• A record of audit (if any)
• The copy of the challan of income tax* payments (advance tax* and self-assessment tax*)
   

Eligibility for Filing for Self-employment or Business
 

ITR-4 or ITR-3 are the appropriate forms to be filled out by self-employed persons or businesspersons who want to file their returns. For ITR-4, the income will have to be calculated through the presumptive tax* method.
 

Companies should file their returns with ITR-6; however, they need not do so if they claim tax* exemptions as religious trusts and charitable trusts.
 

If a charitable or religious trust, scientific research institute, college/university, news agency, non-government organisation (NGO), trade union, or political party files returns, they need ITR-7. In case a company is not a Limited Liability Partnership (LLP) or does not file ITR-7, it can file ITR-5.
 

Offline ITR for Proprietorship
 

You can download the form from the official website of the Income Tax Department and fill the form with Excel or Java tools. Here is how you can go about it:
 

• Go to the official website of the Income Tax Department https://www.incometax.gov.in/iec/foportal  
• Under “Downloads”, select “IT Return Preparation Software.”
• Now download the ZIP file of the software and open it in the folder.
• Then fill in all the compulsory fields on the ITR form you have selected.
• Check and validate all the tabs to compute the income tax*.
• Save the XML file after producing it.
• Then log in to your account by providing your PAN, password, and a captcha code and select “e-file”.
• Click “Income Tax Return” and choose the assessment year, the ITR form number, the filing type ‘Original/Revised Return’ and “Upload XML” as the submission mode.
• Select a verification method from the given options and click “Continue”.
• Add the ITR XML file and submit the file. You can now check and view the uploaded file whenever needed.
   

Conclusion
 

When filing tax* returns as a business, proprietorship or salaried or self-employed individual, all you need is the right information regarding the suitable ITR forms which can help you file your returns. While the process may require some time and patience, filing your tax* returns online has made the process even more convenient. To ensure that you complete the process in a single sitting, ensure that you have all your documents at hand before you start filing your returns.
 

L&C/Advt/2022/Oct/2485