Tax Preparation Services
Tax Preparation Services or Tax Computation comprises of correct assessment of various tax provisions and correct applicability of tax exemptions and tax deductions in order to avoid any error.
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There are various forms of tax returns classified as per the type of persons and nature of business carried on; here we will look into the various forms of income tax return and its applicability.
All type of tax returns are filed online on Income tax portal, further after processing of return by income tax department, its status is also available on Income Tax portal in the user login of the assessee.
Tax Preparation Services or Tax Computation comprises of preparation of tax return as per Tax provisions and ensure to provide the applicable tax deduction or tax exemption benefit to the assessee.
| Forms of Income Tax Return | Applicability |
| ITR-1 | It is applicable on Individuals having salary income or receipts from pension. Individuals having income from ONE house property and individuals having income from other sources having Gross Total Income below INR 50 Lakhs |
| ITR-2 | It is applicable on Individuals or HUF (Hindu Undivided Family) who does not have income from business or profession. |
| ITR-3 | It is applicable on individuals who are ineligible to file ITR-1, it is also applicable on HUF who cannot file return in ITR-2 |
| ITR-4 | This form is applicable on tax payers who have opted for presumptive taxation scheme under section 44AD, 44ADA, and 44AE of the Act. This form is filed if income does not exceed INR 2 crore, if income exceed INR 2 crore then ITR-3 is required to be filed. |
| ITR-5 | This form is applicable on Partnership Firms, LLP (Limited Liability Partnership), co-operative Banks, Co-operative societies, AOP/BOI or any artificial Judicial person. This Form is not applicable on individuals, HUF, Companies and person who file return in ITR-7 |
| ITR-6 | This Form is applicable on Companies (Private Limited, Public Limited and One Person Companies). This form cannot be used if company claim exemption under section 11 (permitted to charitable trusts), in such cases ITR-7 is required to be filed. |
| ITR-7 | All Companies who are eligible to claim exemption under section 11 can file ITR-7. This form can also be filed by Trusts, Political Parties, Person claiming return under section 10, Educational Institutions, Invest Fund Companies, Trade Union. |
There are five different types of Return Filing, thus tax preparation services comprises of filing of:
- Normal Return under section 139(1)
- Belated Return under section 139(4)
- Revised return under section 139(5)
- Loss Return under section 139(3)
- Defective Return under section 139(9)
Normal Return under section 139(1)
There are various dates applicable for filing of Tax Return as per the criteria of type of return to be filed. If the tax payer files the applicable return before due date of filing return then is termed as normal filing of return under section 139(1). Tax Preparation services ensure timely filing if tax computation return u/s 139(1)
Belated Return under Section 139(4)
If the tax payer (assessee) fails to file the normal return by any reason, then belated return (return which is late filed) can be filed before 31st March of the relevant assessment year. Penalty of belated return filing would be charged.
Revised Return under section 139(5)
If the tax payer files return and omits to declare and income or any exemption then he has option to file revise Return. Returns filed under section 139(1) and 139(4) can be revised, i.e. Normal return and belated return filed can be revised.
Revised return can be filed before the end of relevant assessment year or before the completion of assessment whichever is earlier. Tax preparation services ensure for timelines for revised return.
Loss Return under section 139(3)
Losses can be set-off from the income of the tax payer in subsequent years subject to the provisions of set-off, thus if an assessee incurs loss, then loss return need to be filed timely in order to make effective use and further set-off of losses in subsequent years. Tax Preparation services ensure correct computation of loss and carry forward of losses.
Defective Return under section 139(9)
If there is any discrepancy found in the return filed, then Income Tax Department consider it as defective return and the an intimation of the same would be sent to tax payer. The tax payer need to rectify the same within 15 days of receipt of notice.
We at ReturnFilings.Com understand the complete nature of business and provide advisory on Tax Preparation services, by availing our services you can assure:
- Correct filing of Tax Return
- Correct computation of tax as per the provisions of Income tax act and rules thereunder
- Correct determination and availment of exemptions and relief applicable to tax payer.
- Proper response to the tax notices received by Income tax department
- Proper supporting documents for further reference.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your tax preparation services and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfill in order to file tax return economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need for tax preparation services.