CONTENTS
CONTENTS
CONTENTS
CONTENTS
CONTENTS
RETURN FORMS
SAHAJ SAHAJ - Individual Income Tax Return 1 (ITR-1)
ITR-2 Return of Income - For Individuals and HUFs not having income from profits and gains of business or profession 5
ITR-2A [Omitted by the IT (Fourth Amdt.) Rules, 2017, w.e.f. 1-4-2017] 39
ITR-3
Return of Income - For Individuals and HUFs having income from profits and gains of business or profession 40
SUGAM SUGAM - For Individuals, HUFs and Firms (other (ITR-4) than LLP) being a resident having total income upto Rs. 50 lakh and having income from business and profession which is computed under section 44AD, 44ADA or 44AE [Not for an individual who is either Director in a company or has invested in unlisted equity shares or if income-tax is deferred on ESOP or has agricultural income more than Rs. 5000] 101
ITR-4 [Omitted by the IT (Fourth Amdt.) Rules, 2017, w.e.f. 1-4-2017] 107
ITR-5
ITR-6
Return of Income - For persons other than — (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 108
Return of Income - For Companies other than companies claiming exemption under section 11 166
ITR-7 Return of Income - For persons including companies required to furnish return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) only 228
ITR-8 [Omitted by the IT (Twenty-First Amdt.) Rules, 2021, w.e.f. 29-7-2021]
ITR-V Return of Income - Verification Form
ITR-A Return Form - For successor entities to furnish return of income under section 170A consequent to business reorganisation
ITR-U Return Form - For persons to update income within twenty-four months from the end of the relevant assessment year
OTHER RULES AND SCHEMES
Income-tax (Certificate Proceedings) Rules, 1962
Term Deposit Scheme, 2006
Citizens’ Savings Scheme, 2019
Savings Certificates (VIII Issue) Scheme, 2019
(Appellate Tribunal) Rules, 1963
1.367 TAX EXEMPTIONS AND RELIEFS RR. 21AD-21AF
89[Exercise of option under sub-section (4) of section 115BA.
21AD. (1) The option to be exercised in accordance with the provisions of subsection (4) of section 115BA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017, shall be in Form No. 10-IB.
(2) The option in Form No. 10-IB referred to in sub-rule (1) shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—
(i)specify the procedure for filing of Form referred to in sub-rule (2);
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for purpose of verification of the person furnishing the form referred to in the said subrule; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Form so furnished.]
90[Exercise of option under sub-section (5) of section 115BAA.
21AE. (1) The option to be exercised in accordance with the provisions of subsection (5) of section 115BAA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-IC 90a .
(2) The option in Form No. 10-IC shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—
(i)specify the procedure for filing of Form No. 10-IC;
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.
Exercise of option under sub-section (7) of section 115BAB.
21AF. (1) The option to be exercised in accordance with the provisions of subsection (7) of section 115BAB by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-ID.
89.Inserted by the IT (Ninth Amdt.) Rules, 2017, w.e.f. 2-5-2017.
90.Rules 21AE and 21AF inserted by the IT (Fourth Amdt.) Rules, 2020, w.e.f. 1-4-2020. 90a. See Circular No. 19/2023, dated 23-10-2023 (Condonation of delay for assessment year 202122). For details, see Taxmann’s Master Guide to Income-tax Rules.
(2) The option in Form No. 10-ID shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—
(i)specify the procedure for filing of Form No. 10-ID;
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.]
91[Exercise of option under sub-section (5) of section 115BAC.
21AG. (1) The option to be exercised in accordance with the provisions of subsection (5) of section 115BAC by a person, being an individual or Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall be in Form No. 10-IE.
(2) The option in Form No. 10-IE shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall,—
(i)specify the procedure for filing of Form No. 10-IE;
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.
92[Exercise of option under sub-section (6) of section 115BAC.
21AGA. (1) The option to be exercised in accordance with the provisions of subsection (6) of section 115BAC by a person, being an individual or Hindu undivided family, or an association of persons (other than a co-operative society) or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be,—
(a)in Form No. 10-IEA on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year, in the case of a person having income from business or profession;
(b)in the return of income to be furnished under sub-section (1) of section 139 for such assessment year, in the case of a person not having income from business or profession as referred to in clause (i).
91.Rules 21AG and 21AH inserted by the IT (Twenty-second Amdt.) Rules, 2020, w.e.f. 1-10-2020.
92.Inserted by the IT (Tenth Amdt.) Rules, 2023, w.e.f. 21-6-2023.
1.369 TAX EXEMPTIONS AND RELIEFS RR. 21AH-21AHA
(2) The withdrawal of option under the proviso to sub-section (6) of section 115BAC shall also be in Form No. 10-IEA.
(3) Form No. 10-IEA shall be furnished electronically either under digital signature or electronic verification code.
(4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, —
(a)specify the procedure for furnishing of Form No. 10-IEA;
(b)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (3), for verification of the person furnishing the said Form; and
(c)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.
Explanation.—For the purposes of this rule "electronic verification code" means a code generated for the purpose of electronic verification of the person furnishing the Form as per the data structure and standards specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) as the case may be.]
Exercise of option under sub-section (5) of section 115BAD.
21AH. (1) The option to be exercised in accordance with the provisions of subsection (5) of section 115BAD by a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall be in Form No. 10-IF.
(2) The option in Form No. 10-IF shall be furnished electronically either under digital signature or electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall,—
(i)specify the procedure for filing of Form No. 10-IF;
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.]
93[Exercise of option under sub-section (5) of section 115BAE.
21AHA. (1) The option to be exercised in accordance with the provisions of subsection (5) of section 115BAE by a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be in Form No. 10-IFA.
(2) The option in Form No. 10-IFA shall be furnished electronically either under digital signature or electronic verification code.
93.Inserted by the IT (Twenty-third Amdt.) Rules, 2023, w.e.f. 29-9-2023
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, —
(i)specify the procedure for filing of Form No. 10-IFA;
(ii)specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished. ]
94[Computation of exempt income of specified fund for the purposes of clause (4D) of section 10.
21AI. (1) For the purpose of clause (4D) of section 10, income attributable to units held by non-resident (not being the permanent establishment of a nonresident in India) in a specified fund shall be computed in accordance with the following formula, namely:—
Income exempt under clause (4D) of section 10 = A × C1 + B × C2 + D × F1 + E × F2, where
A = any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause ( viiab) of section 47, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange;
B = any income accrued or arisen to, or received by a specified fund as a result of transfer of securities (other than shares in a company resident in India);
C1 = ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under management’ of the specified fund, from the date of acquisition of the capital asset referred to in clause (viiab ) of section 47 to the date of transfer of such capital asset;
C2 = ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under management’ of the specified fund, from the date of acquisition of the security (other than shares in a company resident in India) to the date of transfer of such security.
D = any income accrued or arisen to, or received by a specified fund from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India;
E = any income accrued or arisen to, or received by a specified fund from a securitisation trust which is chargeable under the head “Profits and gains of business or profession”;
94.Inserted by the IT (Twenty-second Amdt.) Rules, 2021, w.e.f. 9-8-2021.
1.371
TAX EXEMPTIONS AND RELIEFS
R. 21AI
F1 = ratio of the ‘assets under management’ in the specified fund held by nonresident unit holders (not being the permanent establishment of a nonresident in India) to the total ‘asset under management’ of the specified fund, as on the date of receipt of such income from securities issued by a nonresident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India; and
F2 = ratio of the ‘assets under management’ in the specified fund held by nonresident unit holders (not being the permanent establishment of a nonresident in India) to the total ‘asset under management’ of the specified fund, as on the date of receipt of such income from a securitisation trust which is chargeable under the head “Profits and gains of business or profession”.
(2) The specified fund shall furnish an annual statement of exempt income in Form No. 10-IG electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.
95[(2A) The income attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) in a specified fund shall not be exempt under clause (4D) of section 10 of the Act unless the specified fund complies with sub-rule (2).]
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify the procedure for filing of the Form No. 10-IG and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements so furnished under this rule.
Explanation.—For the purpose of this rule, the expressions,—
(a)“assets under management” means the closing balance of the value of assets or investments of the specified fund as on a particular date;
(b)“International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005)96;
(c)“permanent establishment” shall have the same meaning as assigned to it in clause (iiia) of section 92F;
(d)“securities” shall have the same meaning as assigned to it in clause (bb) of the Explanation to clause (4D) of section 10;
(e)“due date” shall have the same meaning as assigned to it in the Explanation 2 to sub-section (1) of section 139;
(f)“specified fund” shall have the same meaning as assigned to it in subclause (i) of clause (c) of the Explanation to clause (4D) of section 10; and
(g)“unit” shall have the same meaning assigned to it in clause (f) of Explanation to clause (4D) of section 10.]
95.Inserted by the IT (Seventeenth Amdt.) Rules, 2022, w.e.f. 16-6-2022.
96.For definition of “International Financial Services Centre”, see Appendix.
97[Other conditions required to be fulfilled by a specified fund referred to in clause (4D) of section 10 of the Act.
21AIA. (1) For the purposes of the proviso to item (III) of sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act, the “other conditions” required to be fulfilled by a specified fund shall be that —
(a)the unit holder of the specified fund, other than the sponsor or manager of such fund, who becomes a resident under clause (1) or clause (1A) of section 6 of the Act during any previous year subsequent to the previous year in which such unit or units were issued, shall cease to be a unit holder of such specified fund within a period of three months from the end of the previous year in which he becomes a resident;
(b)for the purposes of clause (a), the specified fund shall maintain the following documents in respect of its unit holders,—
(i)name of the unit holder;
(ii)tax identification number of the unit holder in the country of residence at the time the units were issued;
(iii)permanent account number, if available;
(iv)total number of units held;
(v)total value of units held;
(vi)whether unit holder is a sponsor or a manager;
(vii)the previous year in which the unit holder became resident; and
(viii)date of exit from specified fund.
(2) The specified fund shall certify that it has fulfilled the conditions under sub-rule (1) and furnish information in respect of units held by residents in the annual statement of exempt income in Form No. 10-IG.
(3) The income attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) in a specified fund shall not be exempt under clause (4D) of section 10 unless the specified fund complies with sub-rule (2).
Explanation.—For the purpose of this rule, “specified fund” shall have the same meaning as assigned to it in sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act.]
98[Determination of income of a specified fund attributable to units held by nonresidents under sub-section (1A) of section 115AD.
21AJ. (1) For the purposes of sub-section (1A) of section 115AD, the income of a specified fund by way of short-term or long-term capital gains, referred to in clause (b) of sub-section (1) of section 115AD, attributable to the units held by nonresident (not being the permanent establishment of a non-resident in India) shall be calculated in accordance with the following formula, namely:— A = B × C
97.Inserted by the IT (Seventeenth Amdt.) Rules, 2022, w.e.f. 16-6-2022.
98.Inserted by the IT (Twenty-second Amdt.) Rules, 2021, w.e.f. 9-8-2021.
1.373
Where,
TAX EXEMPTIONS AND RELIEFS
A = income attributable to the units held by non-resident (not being the permanent establishment of a non-resident in India)
B = income arising from transfer of the security
C = ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under management’ of the specified fund, from the date of acquisition of the security to the date of transfer of such security.
(2) For the purposes of sub-section (1A) of section 115AD, the income of a specified fund by way of income received in respect of securities, referred to in clause (a) of sub-section (1) of section 115AD, attributable to the units held by non-resident (not being the permanent establishment of a non-resident in India) shall be calculated in accordance with the following formula, namely:—
X = Y × Z
Where,
X = income attributable to the units held by non-resident (not being the permanent establishment of a non-resident in India)
Y = income received in respect of securities
Z = ratio of the ‘assets under management’ in the specified fund held by nonresident unit holders (not being the permanent establishment of a nonresident in India) to the total ‘asset under management’ of the specified fund, as on the date of receipt of such income.
(3) The specified fund shall furnish an annual statement of income eligible for concessional taxation in Form No. 10-IH electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.
99[(3A) The income of a specified fund referred to in clause (a) and clause (b) of subsection (1) of section 115AD, attributable to the units held by a non-resident (not being the permanent establishment of a non-resident in India), shall not be eligible for tax rates specified in section 115AD unless it furnishes the annual statement of income eligible for concessional taxation in Form No. 10-IH in accordance with the provision of sub-rule (3) ]
(4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify the procedure for filing of the Form No. 10-IH and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements so furnished under this rule.
Explanation.—For the purpose of this rule, the expressions,— (a)“assets under management” means the closing balance of the value of assets or investments of the specified fund as on a particular date;
99.Inserted by the IT (Seventeenth Amdt.) Rules, 2022, w.e.f. 16-6-2022.
(b)“permanent establishment” shall have the same meaning as assigned to it in clause (iiia) of section 92F;
(c)“securities” shall have the same meaning as assigned to it in clause (bb) of the Explanation to clause (4D) of section 10;
(d)“due date” shall have the same meaning as assigned to it in the Explanation 2 to sub-section (1) of section 139;
(e)“specified fund” shall have the same meaning as assigned to it in subclause (i) of clause (c) of the Explanation to clause (4D) of section 10; and
(f)“unit” shall have the same meaning as assigned to it in clause (f) of Explanation to clause (4D) of section 10.]
1[Computation of exempt income of specified fund, attributable to the investment division of an offshore banking unit, for the purposes of clause (4D) of section 10 of the Act.
21AJA. (1) For the purposes of clause (4D) of section 10 of the Act, income of specified fund attributable to the investment division of an offshore banking unit shall be computed in accordance with the following formula, namely: —
A + B + C + D where,—
A = any income accrued or arisen to, or received by the eligible investment division as a result of transfer of a capital asset referred to in clause (viiab ) of section 47 of the Act held by it, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange;
B = any income accrued or arisen to, or received by the eligible investment division as a result of transfer of securities held by it (other than shares in a company resident in India);
C = any income accrued or arisen to, or received by the eligible investment division from securities held by it and issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India;
D = any income accrued or arisen to, or received by the eligible investment division from a securitisation trust which is chargeable under the head “Profits and gains of business or profession”.
Explanation.—Any expenditure incurred for the purposes of making or earning income referred to in items A or B or C or D shall not be allowed as deduction from income from any other activity or source under any provision of the Act, irrespective of the fact that such expenditure has not been allowed as deduction against income referred to in items A or B or C or D, as the case may be.
(2) The eligible investment division shall furnish an annual statement of exempt income in Form No. 10-IK electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.
1.Inserted by the IT (First Amdt.) Rules, 2022, w.e.f. 1-4-2022.
