Which ITR Form should I file? – Types of ITR Forms

ITR

The taxpayer has to communicate the details of his taxable income to the Income-tax Department. These details are communicated to the Income-tax Department in the form of return of income. Different ITR forms are prescribed for different classes of taxpayers.

ITR-1 (SAHAJ)

This income tax return for salaried individuals. Individuals having income from salary, pension and interest income can use this form.

Who is eligible to file the form ITR 1

This form is used by an individual whose total income includes:-

  • Income from salary/pension; or
  • Income from one house property (excluding cases where loss is brought forward from previous years); or
  • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who is not eligible to file the form ITR 1

This form should not be used by an individual whose total income includes:-

  • Income from more than one house property; or
  • Income from Winning from Lottery or income from Race houses; or
  • Income under the head ‘Capital Gains‘. Example, short-term capital gains or long-term capital gains from sale of house , plot, share etc; or
  • Agricultural income in excess of ₹5,000.00; or
  • Income from Business or Profession; or
  • Loss under the head ‘Income from other sources’; or
  • Person claiming relief under section 90 and/or 91; or
  • Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or
  • Any resident having income from outside India

Click here to read more about ITR 1 Sahaj

ITR 2

This income tax form for individuals and HUFs who do not have income from business and profession. The due date of filing the ITR 2 form with Income Tax Department is 31 July every year. The financial year ends on 31 march every year so assessees have a period of four months to prepare their income tax returns.

Who is eligible to file the Form ITR 2?

This form is to be used by an individual or an HUF whose total income for the assessment year includes:

  • Income from salary or pension.
  • Income from house property.
  • Income from capital gains (short term and long term).
  • Income from other sources (including winning from lottery, bets on race houses and other legal means of gambling).
  • Foreign Assets.

Who is not eligible to file the Form ITR 2?

  • Any individual or HUF with income wholly or partially earned from business or profession.
  • Individuals who are eligible to fill out the Form ITR 1.
  • Individuals who are partners in a Partnership Firm.

Click here to read more about ITR2

ITR 2A

This income tax form for individuals and HUFs who have salary income and own more than one house property and do not have capital gains.

Who is eligible to file using the ITR 2A form?

This return form is to be used by an individual and HUF whose total income for an assessment year includes:-

  • Income from Salary or Pension.
  • Income from House Property.
  • Income from Other Sources (including winning from lottery and Income from race horses)

Further, in a case where the income of another person like spouse, minor child etc. is to club with the income of the assessee, this return form can be used where such income falls in any of the categories.

Who is not eligible to file using the ITR 2A form?

This return form should not be used by an individual and HUF whose total income for an assessment year includes:-

  • Income from Capital Gains.
  • Income from Business or Profession.
  • Any claim of relief/deduction under section 90, 90A or 91.
  • Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
  • Any resident having income from any source outside India.

Click here to read more about ITR 2A

ITR 3

This income return form is used by an individual or an HUF who is a partner in a firm and not carrying out business or profession under any proprietorship.

Who is eligible to file Form ITR 3 

This income tax form is to be used by an individual or  an HUF when:

  • A partner in a firm and
  • Where income chargeable to income-tax under the head “Profit or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.

In case, a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only way to share in the profit of the firm, he shall use this form only and not Form ITR-2.

Who is not eligible to file Form ITR 3 

This return form should not be used by an individual whose total income includes Income from Business or Profession under any proprietorship.

Click here to read more about ITR3

ITR 4

This income tax form for individuals and HUFs who have income from proprietary business or are carrying on a profession. A shopkeeper, a doctor, a tutor, a retailer, a wholesaler, an insurance agent, interior decorator or fashion designer, everyone can file their tax return in ITR 4.

If the requirements of an audit are applicable, the due date of filing of return is 30th September. Otherwise, usually, the due date of filing of return for non-audit cases is 31st July.

ITR 4S is a special case ITR, applicable for business where income is calculated on ‘presumptive method’. In the presumptive method, lets you report your income as 8% of your gross receipts (as per Section 44AD of the Income Tax Act) or as ₹7,500 per month for each if you are in the business of plying, leasing or hiring trucks (as per Section 44AE). You do not have to maintain accounting records of your business and advance tax rules do not apply to you. You need to meet the following conditions to file ITR 4S.

  • Your gross receipts or turnover must be less than ₹1 crore.
  • You must be resident of India.
  • You may be an individual, an HUF or a partnership firm but not a company.

Who is eligible to file using the ITR 4 Form

Assessees who are eligible to file using the ITR 4 form are:

  • Carrying on business or profession.
  • Eligible for Presumptive Business Income but where Turnover/Gross Receipts exceeds ₹1 crore.
  • The return may include Salary/Pension.
  • Earn Income from House Property.
  • Earn Income from Other Sources.

Click here read more about ITR 4

ITR 4S

This income tax form for those taxpayers who have opted for the presumptive income scheme as per Section 44AD and Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 1crores, the taxpayer will have to file ITR-4.

ITR 5

This income tax return is meant for firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals)

Who is eligible to file the ITR-5 Form?

This form can be used a person being a firm, LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority.

However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

ITR 6

Companies other than companies claiming exemption under section 11 must furnish their income tax must in ITR-6 Form.

What are the companies claiming exemptions under section 11?

Companies claiming exemption under section 11 are those whose income from property is held for charitable or religious purposes.

ITR 7

ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).

Who is eligible to file the ITR-7 Form?

  • Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
  • Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
  • Return under section 139(4C) is required to be filed by every
    • scientific research association ;
    • news agency ;
    • association or institution referred to in section 10(23A);
    • institution referred to in section 10(23B);
    • fund or institution or university or other educational institution or any hospital or other medical institution.
  • Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

Leave a Reply

Your email address will not be published. Required fields are marked *