Forms and Manner of Furnishing Return of Income (Rule 12)

1. Name of Forms for Furnishing Return of Income [Rule 12(1)]

As per rule 12(1), The return of income required to be furnished under section 139(1) or 139(3) or 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) or section 142(1)(i) or section 148(1) or section 153A relating to the assessment year commencing on the 1st day of April, 2018 shall be in the relevant Forms,—

1. ITR-1 (SAHAJ): Return Form

(A) Who can Use this Form No- ITR-1 SAHAJ

This Form can be used by an individual having—

• — Income from Salary/Pension
• — Income from One House Property (excluding loss brought forward from previous year)
• — Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses and does not have loss under this head)

Further, this Form can be used by the individual if his total income does not exceed Rs.50,00,000 (Rs. 50 Lakh).

(B) Who Can Not use this Form: ITR-1 SAHAJ?

This form cannot be used by an individual whose total income includes—

1. Income from more than one house property; or
2. Income from Winnings from lottery or income from race horses; or
3. Income under the head “Capital gains” e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares, etc.; or
4. Income from agriculture/exempt income in excess of Rs. 5,000; or
5. Income from business or profession; or
6. Loss under the head “Income from other sources”; or
7. Income taxable under section 115BBDA; or
8. Income of the nature referred to in section 115BBE; or
9. Person claiming relief of foreign tax paid under section 90, 90A or 91; or
10. Any resident —
    1. having any asset (including financial interest in any entity) located outside India, or
    1. signing authority in any account located outside India, or
    1. income from any source outside India.

Further, this Form cannot be used by the individual if his total income exceeds Rs. 50,00,000 (Rs. 50 Lakh).

(C) When should ITR-1 (SAHAJ) Form be Files?

ITR-1 form is to be used when the assessee has income that is within Rs. 50 Lakhs and when the source of income falls into any of the below categories:

1. Income from Salary/ Pension
2. Income from just one house property
3. Income from other sources excluding Winning from Lottery, Race Horses, income from foreign assets, Capital Gains, Business or Profession, Agricultural income that exceeds Rs. 5000.

(D) What is the Due Date for Filing ITR-1 (SAHAJ) Form?

ITR-1 form must be filed by individuals and HUFs on or before 31st July of every year

2. ITR-2: Return Form

(A) Who can Use this Form No- ITR-2

This Form can be used by a person being an individual [not being an individual to whom serial number 1 applies] or a Hindu undivided family whose total income does not include income derived from a ‘Proprietary Business or Profession’.

ITR-2 must be filed by individuals and HUFs who are not eligible to file ITR-1 Sahaj form, because of following reasons:

• Income exceeding Rs. 50 Lakhs
• Having foreign assets / income
• Having agricultural income which is more than Rs. 5,000,
• Having taxable capital gains
• Having income from business or profession as a partner
• Having more than one house property

(B) Who can Not Use this Form No- ITR-2

ITR-2 form should not be filed by any individual who has income under the head of Business or Profession from a proprietorship. ITR-2 form can also not be filed by a company or LLP or other types of legal entity.

(C) When should ITR-2 Form be Files?

ITR-2 form is to be used when the assessee has income that falls into the below category:

• Accrued income through the sale of assets or property (Capital Gains)
• Income from more than one housing property
• Income from countries outside of India
• Income as a partner in any firm (not proprietorship)
• Income from agriculture above Rs 5,000
• Income from any windfall such as lotteries or horse racing
• Income from Salary/Pension, Housing Property, Other sources that exceeds Rs. 50 Lakhs

(D) What is the Due Date for Filing ITR-2 Form?

ITR-2 form must be filed by individuals and HUFs on or before 31st July of every year.

3. ITR- 4 (SUGAM) Return Form

(A) Who can Use this Form No- ITR-4 (Sugam)

This return Form can be used by an individual or HUF or a firm (other than LLP) whose total income for the assessment year 2017-18 includes:

• Profit or gains of business or profession and such income is computed in accordance with special provisions referred to in section 44AD, section 44ADA and 44AE of the Act for computation of business or professional income; or
  • — Income from Salary/Pension; or
  • — Income from One House Property (excluding cases where loss is brought forward from previous years); or
  • — Income from Other Sources (Excluding winning from lottery and Income from Race Horses).

(B) Who can Not Use this Form No- ITR-4 (Sugam)

This return Form cannot be used by an individual or HUF or a firm (other than LLP) to file return for the following incomes:

• — Income from more than one house property; or
• — Income from winnings from lottery or income from Race horses; or
• — Income under the head ‘Capital Gains’, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc. or
• — Agricultural income in excess of Rs. 5,000; or
• — Income taxable under section 115BBDA; or
• — Income in the nature referred to in section 115BBE; or
• — Income from Speculative Business and other special incomes; or
• — Person claiming relief of foreign tax paid under section 90, 90A or 91; or
• — Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or
• — Any resident having income from any source outside India

(C) When should ITR-4 Form be Files?

ITR-4 form is to be used when the assessee has income that falls into the below category:

1. Income from carrying on a profession and has opted for presumptive income scheme as per section 44 ADA
2. Income from Proprietary Business and has opted for presumptive income scheme as per section 44 AD or section 44AE
3. Along with income from a profession or proprietary business, return may also include income from House property, Salary/Pension and Income from other sources

(D) What is the Due Date for Filing ITR-4 Form?

Due date for filing income tax return is 31st July for Individuals and 30th September for Businesses.

4. ITR- 5 Return Form

(A) Who can Use this Form No- ITR-5

This form can be used by any person not being an individual or a Hindu undivided family or a company or a person whether or not registered under section 25 of the Companies Act, 1956, who is required to file a return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

(i.e. this Form is meant for a firm, local authority, co-operative bank, other co-operative societies. LLP, any other AOP/BOI or artificial juridical person)

(B) Who should Not File ITR-5 Form

ITR-5 cannot be filed by Taxpayers who fall under the below category:

1. Assessees who are required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) (i.e., Trusts, Political party, Institutions, Colleges, etc.)
2. Individuals, HUFs (Hindu Undivided Families), Companies

(C) When should ITR-5 Form be Files?

ITR-5 form is to be used when the assessee is one of the following:

• Firms
• LLPs (Limited Liability Partnerships)
• AOPs (Association of persons)
• BOIs (Body of Individuals)
• Artificial juridical person
• Cooperative society
• Local authority

(D) What is the Due Date for Filing ITR-5 Form?

Due date for filing the income tax return is 31st August.

5. ITR- 6 Return Form

(A) Who can Use this Form No- ITR-6

TR-6 must be filed by companies that are not claiming exemption under section 11 (Income from property held for charitable or religious purposes)

(B) Who should Not File ITR-6 Form

ITR-6 cannot be filed by Taxpayers who fall under the below category:

1. Individuals, Hindu Undivided Family (HUF), Firm, Association of Person (AOP), Body of Individuals (BOI), Local Authority and Artificial Judiciary Person
2. Companies that claim exemption under section 11 (Income from property held for charitable or religious purposes)

(C) When should ITR-6 Form be Files?

ITR-6 form is to be used when the tax payer is registered as a Company under Indian Companies Act of 1956 or any other law, and if the company is not claiming exemption under section 11 (Income from property held for charitable or religious purposes)

(D) What is the Due Date for Filing ITR-6 Form?

Due date for filing the income tax return is 30th September.

6. ITR-7 Return Form

(A) Who can use this Form?

This form can be used by a person including a company  whether or not registered under section 25 of the Companies Act, 1956, who is required  to file a return under section 139(4A) or section 139(4B) or section 139(4C) or section  139(4D) or section 139(4E) or section 139(4F).

2. Manner of Furnishing Return of Income by a Person with Specified Conditions [Rule 12(3)]

SL.	Person	Conditions	Manner of Furnishing Return of Income
(1)	(ii)	(iii)	(iv)
1	Individual or Hindu undivided family	(a) Accounts are required to be audited under section 44AB of the Act;	Electronically under digital signature;
		(b) Where total income assessable under the Act during the previous year of a  person being an individual of the age of 80  years or more at any time during the  previous year; or  and who furnishes the return in Form No.  SAHAJ ITR-1 or Form No. SUGAM (ITR-4)	Electronically under digital signature; orTransmitting the data in the return electronically under electronic verification code; orTransmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V; orPaper form;
		(c) in any other case	Electronically under digital signature; orTransmitting the data in the return electronically under electronic verification code; orTransmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;Paper form;
2	Company	In all Cases	Electronically under Digital Signature
3	A person required to furnish the return in Form ITR-7	(a) In case of a Political Party	Electronically under Digital Signature
		(b) in any other case	Electronically under digital signature; orTransmitting the data in the return electronically under electronic verification code; orTransmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.
4	Firm or limited liability partnership or any person (other than a person mentioned in SL. 1 to 3 above) who is required to file return in Form ITR-5	(a) Accounts are required to be audited under section 44AB of the Act;	Electronically under Digital Signature
		(b) in any other case	Electronically under digital signature; orTransmitting the data in the return electronically under electronic verification code; orTransmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.

Explanation: 

For the purposes of rule 12(3), “Electronic Verification Code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

3. Due Date for Filing of Return Of Income in case of Tax Audit

The due date for filing of return of income in case of tax audit is also proposed to be increased from September 30 to October 31 of the Assessment Year.

Thus, tax audit  reports shall be required to be furnished on or before September  30 of the Assessment Year.

Therefore, the Finance Bill – 2020 proposes  amendment in following sections:

S. No.	List of Sections	Description	Form No.
1	Section 10(23C)	Audit report certifying the exemption claimed under section 10(23C).	10BB
2	Section 10A	Audit report certifying the deduction claimed under section 10A	56F
3	Section 12A	Audit report certifying the exemption claimed under section 11 by a trust registered under section 12A	10B
4	Section 32AB	Audit report certifying the deposits made to investment deposit account for the purposes of deduction under section 32AB	3AAA
5	Section 33AB	Audit report certifying the deduction for expenditure on know how under Section 33AB.	3AC
6	Section 33ABA	Audit report certifying the deduction for expenditure for obtaining right to use spectrum for telecommunication services under Section 33ABA.	3AD
7	Section 35D	Audit report certifying deduction for amortization of certain preliminary expenditure under Section 35D.	3AE
8	Section 35E	Audit report certifying the deduction for expenditure on prospecting for certain mineral under Section 35E.	3AE
9	Section 44A8	Audit report where a person is carrying on business or profession	3CA/3CB/ 3CD
10	Section 44DA	Audit report to certify the income computed by way of royalties provisions of Section 44DA	3CE
11	Section 50B	Audit report to certify the capital gains computed on slump sale as per provisions of Section SOB	3CEA
12	Section 80-IA	Audit report certifying the deduction in respect of profit & gains from industrial undertakings or enterprises engaged in infrastructure development under Section 80-IA.	10CCB
13	Section 80-lB	Audit report certifying the deduction in respect of profit & gains from industrial undertakings other than infrastructure development undertakings under Section 80-lB.	10CCBA
14	Section 80JJAA	Audit report certifying the deduction in respect of employment of new employees under Section 80JJAA.	10DA
15	Section 92F	Change in definition of ‘Specific Date’	–
16	Section 115JB	Audit report certifying the book profit computed for the purpose of MAT under Section 115JB	29B
17	Section 1 15JC	Audit report certifying the adjusted total income and computation of AMT as per section 115)C	29C
18	Section 115VW	Audit report certifying the computation of income made under tonnage taxation scheme	66