Rule 12 of the Income Tax Rules, 1962, prescribes the forms, conditions, and procedures for filing income tax returns (ITRs) under Section 139 of the Income Tax Act, 1961. Below is a detailed breakdown:
1. Applicable ITR Forms
The following forms are used based on the taxpayer’s income sources and category:
| Form | Applicability | Exclusions |
| ITR-1 (SAHAJ) | Individuals with income from: – Salary/Pension – One house property (no brought-forward loss) – Other sources (excluding lottery, racehorses, foreign assets) – Total income ≤ ₹50 lakh. |
Cannot be used for capital gains, business income, or agricultural income > ₹5,000. |
| ITR-2 | Individuals/HUFs with: – Capital gains – Multiple house properties – Foreign assets/income – Agricultural income > ₹5,000. |
Excludes proprietary business income. |
| ITR-3 | Individuals/HUFs with income as partners in firms (not proprietors). | — |
| ITR-4 (SUGAM) | Individuals/HUFs/firms (non-LLP) with presumptive income under Sections 44AD, 44ADA, or 44AE. | Excludes capital gains, lottery income, or foreign assets. |
| ITR-5 | Firms, LLPs, AOPs, BOIs, cooperatives, and artificial juridical persons . | Excludes companies, trusts, and political parties. |
| ITR-6 | Companies not claiming exemption under Section 11 (charitable/religious income). | — |
| ITR-7 | Entities filing under Sections 139(4A) to (4F) (trusts, political parties, research institutions, etc.). | — |
2. Manner of Filing
- Electronic Filing (E-filing): Mandatory for most taxpayers, except:
- Super seniors (≥80 years) with no business income.
- Digital Signature (DSC): Required for:
- Audited cases (Section 44AB).
- Political parties (ITR-7).
- Paper Returns: Allowed only for specific categories (e.g., super seniors).
3. Key Conditions
- Audit Requirements: Taxpayers with income > ₹2.5L (before exemptions) must attach Form 10B/3CA-3CD.
- Foreign Assets: Must be disclosed in Schedule FA(ITR-2/3/5/6/7).
- Due Dates:
- July 31: Individuals/HUFs (non-audit).
- October 31: Audit cases.
4. Penalties for Non-Compliance
- Late Filing: ₹1,000–₹5,000 under Section 234F.
- Defective Returns: May be treated as non-filing if not rectified within 15 days.
5. Special Cases
- Political Parties (Section 139(4B)): Must file ITR-7with donation details (excluding Electoral Bonds).
- Research Institutions (Section 139(4D)): Mandatory ITR-7filing regardless of income.
1. Preparation of Return by Authorised Representative [Rule 12A]
Rule 12A governs the authorization and responsibilities of representatives who prepare or file income tax returns (ITRs) on behalf of taxpayers. Below is a structured breakdown:
1. Who Qualifies as an “Authorised Representative”?
Under Section 288(2) of the Income Tax Act, the following can act as representatives:
- Chartered Accountants (CAs)
- Company Secretaries (CSs)
- Cost Accountants (CMAs)
- Advocates
- Income Tax Practitioners (ITPs)enrolled under Rule 50 of IT Rules
- Relative/Regular Employee(for individuals/HUFs)
2. Mandatory Compliance under Rule 12A
(a) Digital Authentication
- E-filing with DSC (Digital Signature Certificate):
- Required for audited cases(Section 44AB) or companies.
- The representative must use their own DSC(not the taxpayer’s).
(b) Declaration in ITR
- The representative must disclose their credentialsin the ITR form:
- Name, PAN, Membership Number(for CAs/CSs/CMAs).
- Enrollment Number(for ITPs).
(c) Taxpayer’s Acknowledgment
- The taxpayer must verifythe return (via Aadhaar OTP, EVC, or signed ITR-V).
3. Penalties for Misconduct
- False Statements: Prosecution under Section 277(up to 7 years imprisonment + fine).
- Fraudulent Filing: Disciplinary action by ICAI/ICSI/ICMAI(for CAs/CSs/CMAs).
