Sage-Tips

Which ITR form for small business?

ITR-4
Small businesses need to file ITR-4 if they have opted for a presumptive tax scheme. However, if the company’s turnover exceeds ₹2 crores, the taxpayer will have to file ITR-3.

What is difference between ITR1 and ITR2?

Difference between ITR1 and ITR2 Under Form ITR-1, the individual is not earning an income from through activities like the lottery, gambling etc. On the other hand, in ITR-2, the individual earns through activities like a lottery, gambling etc. The individual earns from 1 house property only.

What is Section 44AD?

Section 44AD is a presumptive taxation scheme that was introduced by Income Tax Law in order to ease the tax burden on small taxpayers or assessees. Individuals who come under the provisions of this scheme need not maintain or show books of account, nor are they required to get an audit performed on the same.

How many types of ITR forms are there?

There are seven ITR forms for individuals, namely, ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7.

What ITR 1?

ITR-1, also known as Sahaj Form, is for person with an income up to Rs. 50 lakhs. Aadhaar Card is Mandatory for Income Tax Return Filing. The Income Tax Department has made it mandatory for all taxpayers to link the Aadhaar card with PAN on the Income Tax Department website.

How do I file a return under 44AD?

ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.

How to file ITR 3 and ITR 4 for self-employed?

ITR Form: Self-employed people can file tax returns in Form ITR 3 or ITR 4. ITR 4 is for taxpayers who opt for the presumptive taxation scheme. If you are using Form ITR 3 for filing tax returns, then the filing process might get a little complicated. You have to first download the Java or Excel utility from https://incometaxindiaefiling.gov.in.

Do I have to file ITR If I am a sole proprietor?

If you are a sole proprietor, your business income and other personal income like income from house property and interest income has to be clubbed under the same return. If your total income before deductions is above the basic taxable limit of Rs 2.5 lakh, you have to mandatorily file ITR.

What are the different types of ITR forms?

Depending on the type of income that individuals make, they can either opt for ITR-1, ITR-2, ITR-3, ITR-4, and ITR-7. The Income Tax Returns can be a file on the official website of the Income Tax Department (https://www.incometaxindiaefiling.gov.in/home) and the process to file the returns is simple. FAQs on Types of ITR Forms

Can I file ITR without form 16 from my employer?

Even if you don’t have Form 16, there are several documents such as salary slips, Form 26As etc. you can use as a reference to file your income tax return (ITR). Follow this guide to know how you can easily your ITR without having your Form 16 from your employer.