Income Tax Return

The Income Tax is the annual charge levied on the income viz. Salary, wage, commission, dividend, bonus, etc. of an individual, company or a firm. For each assessment year, the rate of tax levied on different income levels, as prescribed in the slab.


In India, the income tax is charged annually at the end of each financial year (April – March).
There are different tax rates for different income levels on the basis of which the tax amount is computed. There is a minimum cap on income beyond which the tax is calculated.
There are some deductions under different sections of the Income Tax Act that gives relaxation in the Tax Amount.


Who pays Income Tax

According to the Indian Income-tax Act, 1961, the following parties are liable to pay the income tax, provided their annual income falls into one of the income slabs as prescribed in the Act:

  1. Individuals
  2. Hindu Undivided Families (HUFs),
  3. Companies
  4. Firms
  5. Association of persons
  6. Body of individuals
  7. Local authority


Hence, every individual falling in any of the above-mentioned categories must pay income tax which is used by the government for the betterment of the society.

Few Common Deductions are

  1. Public Provident Fund (PPF)
  2. Life insurance premium
  3. MediClaim insurance
  4. Tuition fees for child education
  5. Contribution to NPS
  6. Tax Saver Fixed Deposit (FD)
  7. Health insurance premium
  8. Investments made under The Rajiv Gandhi Saving Scheme
  9. Home loan repayment, etc.


Type of Income Tax Return

ITR 1

For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh


ITR 2

For Individuals and HUFs not having income from profits and gains of business or profession


ITR 3

For individuals and HUFs having income from profits and gains of business or profession


ITR 4

For presumptive income from Business & Profession


ITR 5

For persons other than:- (i) Individual, (ii) HUF, (iii) Company and (iv) Person filing Form ITR-7


ITR 6

For Companies other than companies claiming exemption under section 11


ITR 7

For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)


Due Date of Income Tax Return

Individual 31 July of next financial year


Body of Individuals (BOI) 31 July of next financial year


Association of Persons (AOP) 31 July of next financial year


Businesses (Requiring Audit) 30 September of next financial year


Businesses (Requiring TP Report) 30 November of next financial year