Individual having Income from Business / Profession for AY 2023-2024

Returns and Forms Applicable to Individual having Income from Business / Profession for AY 2023-2024

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer to the Income Tax Act, Rules and Notifications.

1. ITR-3 - Applicable for Individual & HUF

This return is applicable for Individual & Hindu Undivided Family (HUF);

Having Income under the head Profits or Gains of Business or Profession

Who is not eligible for filing ITR-1, ITR-2 or ITR-4

2. ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (Other than LLP)

Note:

ITR-4 cannot be used by a person who:

(a) is a Director in a Company, or
(b) has held any unlisted equity shares at any time during the previous year, or
(c) has any asset (including financial interest in any entity) located outside India, or
(d) has signing authority in any account located outside India, or
(e) has income from any source outside India,
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP
(g) who has any brought forward loss or loss to be carried forward under any head of income

Please note that Form ITR-4 (SUGAM) is not mandatory. It is a simplified return form to be used by an assessee, at his / her option, if he / she is eligible to declare Profits and Gains from Business or Profession on presumptive basis under Section 44AD, 44ADA or 44AE.

Forms Applicable

1. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary

Provided by	Details provided in the form
Deductor to Deductee	Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department.

2. Form 26AS

Provided by	Details provided in the form
Income Tax Department (It is available on e-Filing Portal: Login > e-File> Income Tax return > View form 26AS)	Tax Deducted / Collected at Source

Note: Information (Advance tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M,TDS defaults) which were available in 26AS now, will be available in AIS mentioned below.

3. AIS - Annual Information Statement

Provided by	Details provided in the form
Income Tax Department (It can be accessed in Services menu after logging on to Income Tax e-Filing portal)	Tax Deducted / Collected at Source SFT Information Payment of taxes Demand / Refund Other information (like Pending/Completed proceedings, GST information, Info received from foreign government. etc

Path to Access AIS: Go to e-filing portal>login>Services>AIS

4. Form 3CB-CD

Submitted by	Details provided in the form
Taxpayer who is required to get his / her accounts audited by an accountant u/s 44AB. To be furnished atleast one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report of Audit of Accounts (Form 3CB) and Statement of Particulars (Form 3CD) required to be furnished under Section 44AB of the Income Tax Act, 1961

5. Form 15G - Declaration by resident Taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax

Submitted by	Details provided in the form
A Resident Individual less than 60 years or HUF or any other Person (other than Company / Firm) to bank for not deducting TDS on Interest Income if the income is below basic exemption limit.	Estimated Income for the FY

6. Form 15H - Declaration to be made by a resident Individual (who is 60 years age or more) claiming certain receipts without deduction of tax

Submitted by	Details provided in the form
A Resident Individual, 60 years or more to bank for not deducting TDS on Interest Income.	Estimated Income for the FY

7. Form 3CEB

Submitted by	Details provided in the form
Taxpayer who enters into an international transaction or specified domestic transactions is required to obtain a report from a chartered accountant u/s 92E. To be furnished atleast one month before the due date for furnishing the return of income under sub-section (1) of section 139.	Report from a chartered accountant containing details of all international transaction(s) and specified domestic transaction(s)

Tax Slabs for AY 2023-24

Individuals & HUFs can opt for the existing tax regime or the new tax regime (with lower rate of taxation) (u/s 115 BAC of the Income Tax Act).

The taxpayer opting for concessional rates in the new tax regime will not be allowed certain exemptions and deductions (like 80C, 80D, 80TTB, HRA) available in the old tax regime. The option can be exercised for every previous year where the Individual or the HUF has no Business Income.

For a person having Business Income, once the option to be taxed under the new tax regime has been exercised for a previous year, shall be valid for that previous year and all subsequent years till the business continues to exist.

For Individual (Resident or Non-Resident) less than 60 years of age anytime during the previous year:

Old Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to ₹ 2,50,000	Nil	Up to ₹ 2,50,000	Nil
₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000	₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000
₹ 5,00,001 - ₹ 10,00,000	₹ 12,500 + 20% above ₹ 5,00,000	₹ 5,00,001 - ₹ 7,50,000	₹ 12,500 + 10% above ₹ 5,00,000
Above ₹ 10,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	₹ 7,50,001 - ₹ 10,00,000	₹ 37,500 + 15% above ₹ 7,50,000
		₹ 10,00,001 - ₹ 12,50,000	₹ 75,000 + 20% above ₹ 10,00,000
		₹ 12,50,001 - ₹ 15,00,000	₹ 1,25,000 + 25% above ₹ 12,50,000
		Above ₹ 15,00,000	₹ 1,87,500 + 30% above ₹ 15,00,000

For Individual (Resident or Non-Resident), 60 years or more but less than 80 years of age anytime during the previous year:

Old Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to ₹ 3,00,000	Nil	Up to ₹ 2,50,000	Nil
₹ 3,00,001 - ₹ 5,00,000	5% above ₹ 3,00,000	₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000
₹ 5,00,001 - ₹ 10,00,000	₹ 10,000 + 20% above ₹ 5,00,000	₹ 5,00,001 - ₹ 7,50,000	₹ 12,500 + 10% above ₹ 5,00,000
Above ₹ 10,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	₹ 7,50,001 - ₹ 10,00,000	₹ 37,500 + 15% above ₹ 7,50,000
		₹ 10,00,001 - ₹ 12,50,000	₹ 75,000 + 20% above ₹ 10,00,000
		₹ 12,50,001 - ₹ 15,00,000	₹ 1,25,000 + 25% above ₹ 12,50,000
		Above ₹ 15,00,000	₹ 1,87,500 + 30% above ₹ 15,00,000

Individual (Resident or Non-Resident) 80 years of age or more anytime during the previous year:

Old Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to ₹ 5,00,000	Nil	Up to ₹ 2,50,000	Nil
₹ 5,00,001 - ₹ 10,00,000	20% above ₹ 5,00,000	₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000
Above ₹ 10,00,000	₹ 1,00,000 + 30% above ₹ 10,00,000	₹ 5,00,001 - ₹ 7,50,000	₹ 12,500 + 10% above ₹ 5,00,000
		₹ 7,50,001 - ₹ 10,00,000	₹ 37,500 + 15% above ₹ 7,50,000
		₹ 10,00,001 - ₹ 12,50,000	₹ 75,000 + 20% above ₹ 10,00,000
		₹ 12,50,001 - ₹ 15,00,000	₹ 1,25,000 + 25% above ₹ 12,50,000
		Above ₹ 15,00,000	₹ 1,87,500 + 30% above ₹ 15,00,000

Note:
1. The rates of Surcharge and Health & Education cess are same under both the tax regimes.

2. Rebate u/s 87-A Resident Individual whose total income is not more than ₹5,00,000 is also eligible for a rebate of up to 100% of income tax or ₹12,500, whichever is less. This rebate is available in both tax regimes

Surcharge, Marginal Relief and Health & Education Cess

What is Surcharge?

Surcharge is an additional charge levied for persons earning income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates

10% - Taxable income above ₹50 lakh – Up to ₹1 crore
15% - Taxable income above ₹1 crore - Up to ₹2 crore
25% - Taxable income above ₹2 crore - Up to ₹5 crore
37% - Taxable income above ₹5 crore
Maximum surcharge on income by way of dividend or income under the provisions of 111A, 112A and 115AD is 15%.

What is Marginal Relief?

Marginal Relief is a relief from surcharge, provided in cases where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed the amount of income earned exceeding 50 lakh,1 crore, 2 crore or 5 crores respectively.

What is Health and Education cess?

Health and Education cess @ 4% shall also be paid on the amount of income tax plus surcharge (if any).

Investments / Payments / Incomes on which I can get tax benefit

Section 24 (b) – Deduction from Income from House Property on interest paid on housing loan and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakhs. However, this deduction is not available for persons opting for new tax regime.

Interest on Loan u/s 24(b) allowable is tabulated below:

Nature of Property	When Loan was Taken	Purpose of Loan	Allowable Interest (Maximum Limit)
Self-occupied	On or after 01/04/1999	Construction or Purchase of House Property	₹ 2,00,000
	On or after 01/04/1999	For Repairs of House Property	₹ 30,000
	Before 01/04/1999	Construction or purchase of House Property	₹ 30,000
	Before 01/04/1999	For Repairs of House Property	₹ 30,000
Let Out	Any time	Construction or purchase of House Property	No maximum limit

Tax deductions specified under Chapter VI-A of the Income Tax Act

These deductions will not be available to a taxpayer opting for the new tax regime u/s 115 BAC, except for deduction under Section 80CCD(2) and 80JJAA which will be allowable under new tax regime as well.

80C, 80CCC, 80CD(1)

Deduction towards payments made to:

80C	Life Insurance Premium Provident Fund Subscription to certain equity shares Tuition Fees National Savings Certificate Housing Loan Principal and Other various items
80CCC	Annuity plan of LIC or other Insurer towards Pension Scheme
80CD(1)	Pension scheme of Central Government

Combined deduction limit of ₹ 1,50,000

80CCD(1B)

Deduction towards payments made to Pension scheme of Central Government, excluding deduction claimed under 80CCD (1)

Deduction Limit of ₹ 50,000

80CCD (2)

Deduction towards Contribution made by an employer to the Pension Scheme of Central Government:

If employer is a PSU, State Government or Others

Deduction of 10% of salary

If employer is Central Government

Deduction of 14% of salary

80D

Deduction towards payments made to Health Insurance Premium and Preventive Health check-up:

For self / spouse or dependent children

Deduction limit is
₹ 25,000 (₹50,000 if any person is a senior citizen)

₹ 5,000 for preventive health check-up, included in above limit

For parents

Deduction limit is
₹ 25,000 (₹50,000 if any person is a senior citizen)

₹ 5,000 for preventive health check-up, included in above limit

Deduction towards medical expenditure incurred on a senior citizen, if no premium is paid on Health Insurance coverage:

For self / spouse or dependent children

Deduction limit is ₹ 50,000

For parents

Deduction limit is ₹ 50,000

80DD

Deduction towards payments made towards maintenance or medical treatment of a disabled dependent or paid / deposited any amount under relevant approved scheme

Flat deduction of ₹ 75,000 available for a person with disability, irrespective of expense incurred.

The deduction is ₹ 1,25,000 if the person has severe disability (80% or more).

Note: Dependent should not claim deduction u/s 80U to claim this deduction.

80DDB

Deduction towards payments made towards medical treatment of self or dependent for specified disease

Deduction limit of ₹ 40,000 (₹ 1,00,000 if senior citizen)

80E

Deduction towards interest payments made on loan for higher education of self or relative

Total amount paid towards interest on loan taken

80EE

Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017

Deduction limit of ₹ 50,000 on the interest paid on loan taken

80EEA

Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction should not have been claimed u/s 80E

Deduction limit of ₹1,50,000 on the interest paid on loan taken

80EEB

Deduction towards interest payments made on loan for purchase of electric vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023

Deduction limit of ₹ 1,50,000 on the interest paid on loan taken

80G

Deduction towards Donations made to prescribed funds, charitable institutions, etc.

Donation are eligible for deduction under the below categories

Subject to qualifying limit

100% deduction

50% deduction

Without any limit

100% deduction

50% deduction

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000

80GGC

Deduction towards donations made to Political Party or Electoral Trust

Deduction of total amount paid through any mode other than cash

80GG

Deduction towards rent paid for house and applicable only for those who are self-employed or for whom HRA is not part of salary.

Least of the following shall be allowed as deduction:

Rent paid reduced by 10% of total income before this deduction (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 155D)

₹ 5,000 per month

25% of total income before this deduction

Note: Form 10BA to be filed for claiming this deduction.

80IA

Undertaking engaged in developing, maintaining and operating any infrastructure facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction
(subject to certain conditions)

	100% of profit for 10 consecutive AYs falling within a period of 15 AY beginning with the AY in which assessee develops / begins operating and maintaining infrastructure facility.
	No deduction shall be allowed to any enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st day of April, 2017. (No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

80IAB

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise Engaged in Development of Special Economic Zone

(Subject to certain conditions)

100% of profit for 10 consecutives AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government

No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

80IB

Deduction towards Profits and Gains from specified industrial undertakings other than infrastructure development undertakings- 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007).

The deduction under this section is available to an assessee whose Gross Total Income includes any Profits and Gains derived from the business of:

Industrial Undertaking including an SSI in J&K;

Commercial Production and Refining of Mineral Oil;

Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains

Indian Company with Scientific and Industrial Research and Development as its main object and approved by prescribed authority shall be entitled to claim deductions

(Subject to certain conditions)

100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings from the AY in which it is approved by prescribed authority (if approved before 1st April 1999).

80IBA

Profit and Gains derived from Developing and Building Housing Projects

100% of profit subject to various conditions specified

80IC

Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states

(subject to certain conditions)

100% of profits for first 5 AY and 25% (30% for a company) for next 5 AY to manufacture or produce specified article or thing

80IE

Deduction to certain Undertakings set up in North- Eastern states

(subject to certain conditions)

100% of profits for 10 AY subject to various conditions specified

80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

100% of profits from activity of collecting, processing and treating bio degradable waste for 5 consecutive AYs

80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to assessee to whom Section 44AB applies

(subject to certain conditions)

30% of additional employee cost for 3 AY, subject to certain conditions

80QQB

Deduction in respect of Resident Authors of certain Books other than Textbooks

Income derived by way of Royalty by an Author / Joint Author up to a maximum of ₹ 3 lakh, subject to other conditions

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

80RRB

Deduction for Resident Individuals in respect of Royalty on Patents

First Inventor / Co-owner under the Patents Act, 1970 earning income by way to Royalty up to the amount of Royalty or ₹ 3 lakh (whichever is lesser)

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

80TTA

Deduction on Interest Received on Saving Bank Accounts by Non-Senior Citizens

Deduction limit of ₹ 10,000/-

80TTB

Deduction on Interest Received on Deposits by Resident Senior Citizens

Deduction limit of ₹ 50,000/-

80U

Deductions for a Resident Individual Taxpayer with Disability

Flat ₹ 75,000/- deduction for a person with disability, irrespective of expense incurred

Flat ₹ 1,25,000/- deduction for a person with severe disability (80% or more), irrespective of expense incurred