The Easiest Guide to File Income Tax Returns Online in India

Online income tax returns can be submitted using the tax department's e-filing system or through the KDK software’s Income tax return filing software.

Every person, including self-employed people and those who own businesses, should file income tax returns online using one of the several ITR forms the government has provided. Your income is made up of your salary, interest, dividends, capital gains, and so on. Filing of all types of income tax forms can be done by using different tax software provided by KDK Software.

Different Types of ITR

ITR 1

If you receive income in the form of a salary or pension, you must use this form. Additionally, you must complete and file this ITR form online if you get income from rental property or other sources, other than lottery winnings or income from horse racing.

You cannot use ITR 1 using this form if your yearly income is higher than 50 lakh rupees or if you have foreign assets. Additionally, the form cannot be utilized for income from a profession or business, revenue from multiple properties, income from agriculture exceeding Rs. 5,000, or income from taxable capital gains.

ITR 2

You must use this form to file your income tax return online if your yearly income from real estate, wages or pensions, or other sources exceeds 50 lakhs. You must use form ITR 2 to file an income tax return online if you combine your income with that of your spouse or children i.e. Clubbing of Income, However, if your income consists of professional or entrepreneurial earnings, this form can not be utilized.

ITR 3

A person who receives revenue from a company is qualified to report and file their income tax return online using the form ITR 3. If your earnings come from pensions, salaries, or other sources, you can also use this form.

ITR 4

Form 4 must be used to file your income tax return if you chose the presumptive income plan under sections 44AD, 44ADA, and 44AE. However, you must use form 3 to file your income tax if your total yearly revenue exceeds 2 crores.

ITR 5

Limited liability partnerships (LLPs), groups of people (BOIs), and associations of people (AOPs) utilize the ITR 5 Form to file their income tax returns online.

ITR 6

Companies that are not excluded under Section 11's rules for revenue from property kept for religious or charitable purposes must electronically file their Income tax return online by using Form 6.

ITR 7

The ITR 7 form must be used to submit returns for any person or business that is required to provide income tax information under Sections 139 (4A), 139 (4B), 139 (4C), and 139 (4D).

Mostly used in the case of registered trusts.

ITR-U

Ever made a mistake on your ITR or neglected to file an income tax return?

You have two years to amend your ITR under the Income Tax Act's Section 139(8A) provision. From the end of the year when the initial return was submitted, two years will be computed. ITR-U was introduced to help taxpayers comply with the law on taxes while also maximizing compliance.

You may quickly file your ITR form electronically, or "e-filing," which streamlines the process and eliminates hassles, for this purpose you can also use KDK Software’s Spectrum software, which is equipped with all types of ITR forms discussed above.

Who needs to file income tax returns?

If a person's gross taxable income for a given financial year exceeds the maximum amount exempt from tax, they must file an income tax return online using the specific format provided by the government but they must keep in mind that before long-term capital gains on listed securities up to Rs. 1 lakh and other deductions under Chapter VI-A of the Act are eligible for exemption, the taxable income must be determined.

The total taxable income must first be computed to establish how much income tax is owed by a person. Five categories are used to classify the total taxable income:

Income from Salary

Salaries and pension income fall under the first group. Under this topic, the employer's pay or pension is taxed. To find out about your pay or pension received during a certain fiscal year, utilize Form 16 (TDS certificate) or salary/pension slips.

People with salary or pension income are qualified for a number of tax breaks and deductions. Other tax benefits include leave travel allowance (LTA), house rent allowance (HRA), and others. If these tax benefits are funded by the employer, they will be available. Additionally, typical deductions for wage and pension income are available to salary and pension recipients

Definition of the Word 'Salary' is defined in [Section 17(1)] of Income Tax Act and the Basis of charge of Salary Income is given in Section 15 Of the Income-tax Act.

Return of salary can be filed online using KDK software.

Income from House Property

The category "Income from House property" is used to determine any rental income from a home. Self-occupied rent is a notion that is considered to constitute rent for determining taxable income under the heading "revenue from residential property." It is deemed self-occupied if the taxpayer resides there alone. The home is considered to be rented if the taxpayer has more than two residences that are not rented. The owner is entitled to a standard deduction of 30% for paid municipal taxes if the home is rented or considered to be rented.

Sections 22 to 27 of the income tax act deal with the taxation of house property.

Income from Capital Gains

Selling real estate, residential property, mutual funds (equity and debt), gold jewellery, and other assets can result in capital gains. Depending on how long a person maintained an item, capital gains are divided into two categories: short-term and long-term.

The lengths of time that different asset classifications can be held vary. For instance, equity-oriented mutual funds must be held for more than a year for profits to be considered long-term. Similarly to this, a home must be owned for more than two years for capital gains to be considered long-term. Depending on the asset type, both long-term and short-term capital gains are taxed at different rates.

Income from A Profession or Business

Those who make money through a business, as a freelancer, or as a consultant must list their income under the category "Income from business/profession." A person who owns a business may deduct specific costs from their income on their tax return to lower their taxable income and, consequently, their tax.

Income from Other Sources

All incomes not mentioned in the other categories are included in the fifth income category. These include dividends, family pensions, pensions from insurance company policies, interest income from fixed deposits, RBI taxable bonds, and so on.

You must make sure that you comply with all the income tax provisions and file your income tax return online to avoid any late fees or other consequences related to non-filing. You can comply and file your taxes by using KDK Software and avoid any late fees or interest.