Personal income tax is a taxation system that is imposed by public authorities on an individual’s income. It is levied on an individual’s salary or pension, etc.
A business tax return is essentially an income tax return that is a statement of income and expenditure of the business. If there are any taxes to be paid on the profits made by you, it is declared in this return. The return also consists of details of the assets and liabilities of the business. Items like fixed assets, debtors and creditors of the business, loans were taken and loans were given are declared here.
TDS is a direct taxation mechanism, introduced to collect taxes from the source of income or at the time of income payout. Under this, if a person is liable to make payments to another person (deductee) the tax will be deducted at the source and the balance will be transferred to the deductee. The TDS amount will be remitted to the Central Government and the deductee can check the Tax Deducted at the Source in Form 26AS or TDS Certificate issued by the deductor.
- ITR-1: ITR-1 is a form for any individual who has an income of up to 50 lakh from the following sources:
- Income from salary or pension.
- Income from One house property (excluding any loss brought forward from previous years.)
- Income from other sources. (excluding winning from lottery and horse races).
- ITR-2: ITR form 2 is for any individual and HUF receiving income from anywhere other than “Profits and gains from businesses or professions”. Any person having income from the following sources are eligible for this form:
- Income from salary or pension.
- Income from House property (income can be from more than one house property).
- Income from capital gains/loss on the sale of investments and property (both short and long term).
- Income from other sources. (including winning from lottery or racehorses or any legal means of gambling).
- Foreign assets or income
- Agricultural income more than Rs. 5000.
- ITR-3: ITR-3 is applicable for any individual and HUF who have income from profits and gains from any business or profession. The individual having income from the following sources will be eligible to file ITR-3:
- Carrying on a business (tax audit and non-audit cases).
- The return can include income from house property, salary, capital gains and income from any other sources.
- ITR-4: This form is for the taxpayers who opted for a presumptive income under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. But, if the turnover exceeds Rs. 2 crores, the taxpayer will have to file ITR-3.
- Business income under section 44AD or 44AE.
- Income from profession calculated under section 44ADA.
- Salary or pension having income up to Rs. 50 lakh.
- Income from One House Property having an income of up to Rs. 50 lakh.
- Income from any other source having income up to 50 lakh.
- ITR-5: ITR-5 is meant for firms, LLPs, AOPs, BOIs, Artificial Juridical Person, Estate of insolvent, Estate of deceased, Business trust and investment funds. An individual is required to file the return of income under Section 139(4A) or 139(4B) OR 139(4C) OR 139 (4).
- ITR-6: Any company that is not claiming exemption under section 11, must furnish the income tax return in ITR-6 form.
- ITR-7: ITR-7 is filed when an individual or a company falls under Section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
FORM 16: Form 16 consists of any information that is needed to prepare and file your income tax return. It is a summary of salary income and the TDS amount deducted by the employer. It has two components- Part A and Part B. Employers have to issue it every year on or before 15th June of the following year.