ITR for Self-employed Individuals: Explained

As a self-employed individual, you're responsible for filing your ITR. Hence, it’s crucial to have a comprehensive understanding of the different ITR forms. These include ITR-2 for individuals with income from extra sources, ITR-3 for proprietary businesses, and ITR-4 for presumptive taxation. Moreover, you need to be extra careful when calculating your taxes. Keep your documents ready and complete your online ITR filing by the set date to avoid penalties.

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Key Takeaways

ITR-2 is for individuals and Hindu Undivided Families (HUFs) with income from sources like house property and capital gains

ITR-3 is for individuals running a proprietary business or profession, capturing all business income and expenses

ITR-4 is for individuals who have opted for the presumptive taxation scheme under Section 44AD, 44ADA, or 44AE

ITR-5 is for firms like Limited Liability Partnership (LLP), Association of Persons (AOP), and Body of Individuals (BOI)

ITR-6 is for companies, barring those claiming exemption under section 11

ITR-7 is for individuals required to furnish a return under sections 139(4A) to 139(4F)

Keep all necessary documents handy, including PAN card, Aadhaar card, bank account details, and Form 16/16A/16B

Double-check calculations to ensure accuracy and claim all eligible deductions and exemptions when filing your ITR online

Frequently Asked Questions
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The deadline for filing your ITR is typically July 31st of the assessment year, unless extended by the government.
The presumptive taxation scheme is a scheme under which your net income is considered as a fixed percentage of your annual turnover.
ITR-2 is used for individuals and Hindu Undivided Families (HUFs) with income from sources like house property, capital gains, etc.
ITR-3 is used for individuals running a proprietary business or profession, capturing all business income and expenses.
ITR-4 should be filed by small business owners and self-employed individuals opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE.
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