Tax Compliance

TAX RETURNS

Standard form provided by the tax authorities on which a taxpayer reports taxable income with permitted deductions and exemptions, and computes his or her tax liability. The income tax returns are used to file income tax with the Income tax department. Income Tax returns must be filed every year for an individual or business that received income during the year, whether through salary, interest, dividends, capital gains, or business profits. A return of excess taxes paid during a given tax year; this is more accurately known as a “tax refund”.

Type of Forms Who can use/ Description
ITR-1 For Individuals having Income from Salary / Pension, Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)]
ITR-2 For Individuals and HUFs having Income from salary/pension, house property, capital gains and other sources
ITR-3 For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR-4 For Individuals and HUFs having income from a proprietary business or profession
ITR-5 For Firms, Co-operative Banks, Co-operative Societies, Limited Liability Partnerships (LLP), Association of Persons (AOP), Body of Individuals (BOI) and Artificial Judicial Persons
ITR-6 For Companies
ITR-7 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

 

SERVICE TAX RETURN

Filing of service tax return is compulsory, even if it may be a nil return, within the prescribed time limit, failing which penal action is attracted. Service tax return is required to be filed twice in a financial year – half yearly. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.

Type of Forms Who can use/ Description
ST-3 For all the registered assessee, including Input Service Distributors
ST-3A The assessee who is making provisional assessment under rule 6(4) of the Service Tax Rules, 1994.

 

VAT RETURN

A registered taxable person is liable to file VAT returns in the respective states. The frequency of VAT returns filing varies across states. Further, depending on the category of the taxable person/turnover or tax liability incurred during the preceding year or expected during the current year, the VAT return filing could be monthly, quarterly, or half-yearly. Failure to furnish timely VAT returns and settle outstanding VAT payments may result in penalty and interest.